Second Brewery Application Will Be FuelCell Energy's First Food Processing
Application in the United States

FuelCell Energy, Inc.(Nasdaq: FCEL) and Alliance Power have entered into an arrangement by which
Sierra Nevada Brewing Co. of Chico, Calif. is expected to purchase four
250-kilowatt Direct FuelCell(R) (DFC(R)) power plants in late 2005 or early
2006.  Until that time, a joint venture of FuelCell Energy and Alliance Power
will supply electric power and heat to the brewery's production processes.
The power plants are expected to be delivered and operational in the first
calendar half of 2005.

Alliance Power is the turnkey provider to the project and FuelCell Energy
will provide the DFC power plants and operations and maintenance services.
After Sierra Nevada purchases the units, FuelCell Energy will provide
maintenance services under a long-term service agreement.

The DFC power plants will initially operate on natural gas.  Sierra Nevada
is exploring the possibility of supplementing the fuel supply with anaerobic
digester gas.

Pacific Gas and Electric, administrator for The California Public
Utilities Commission's (CPUC) Self-Generation Incentive Program for their
service territory, has issued a reservation letter that will provide incentive
funding of 40 percent of eligible project costs to the combined entity.

"This transaction demonstrates that our DFC power plants, designated as
'ultra-clean' distributed generation in the state of California, can provide
customers with clean and efficient power with cost savings versus the grid,
when leveraging available state incentives," said Herbert T. Nock, Senior Vice
President of Marketing and Sales of FuelCell Energy. "The Self-Generation
Incentive Program in California is a key enabler for us to develop a market
for our DFC power plants in California."

"The heat and power derived from these fuel cell power plants will reduce
our energy costs compared with what we were paying from the grid," said Ken
Grossman, founder and owner of Sierra Nevada Brewing Co.  "We could have saved
even more by going with traditional, combustion-based natural gas generators,
but we are willing to pay a premium for the environmental benefits delivered
by the FuelCell Energy power plants."

Grossman added, "This is part of our ongoing commitment to keeping Sierra
Nevada Brewing Co. as green a facility as possible." 

"This transaction is evidence that customers are willing to pay a premium
for clean and efficient power," said James Michael, President of Alliance
Power.  "The good news is that with state support from California, this still
provides a more economical energy alternative for Sierra Nevada versus grid-
delivered power."

    About the CPUC Self-Generation Incentive Program

The CPUC Self-Generation Incentive Program was created to encourage
customers of electrical corporations to install distributed generation that
operates on renewable fuel and/or contributes to system reliability. Existing
law defines 'ultra-clean and low-emission distributed generation' as an
electric generation technology that produces zero emissions during operation
or that produces emissions that are equal to or less than limits established
by the California Air Resources Board (CARB). The program currently runs
through 2007 and provides up to $66 million per year in incentive funding for
ultra-clean and renewable generators, including fuel cells.

FuelCell Energy's DFC300A Designated as 'Ultra-Clean' Technology in
California   

In May 2003, FuelCell Energy's DFC300A power plants were state certified
to meet CARB's stringent new distributed generation emissions standards for
2007.  By meeting this standard, the Company's sub-megawatt DFC power plants
are categorized as an 'ultra-clean' technology, exempting them from air
pollution control or air quality district permitting requirements by CARB.  In
addition, this certification qualifies the Company's products for preferential
rate treatment by the CPUC, such as the elimination of 'exit fees' and
'standby charges' for customer electric generation utilizing 'ultra-clean'
technologies.

About Direct FuelCells    

Direct FuelCells efficiently generate clean electricity at distributed
customer locations, including hospitals, schools, universities, hotels and
other commercial and industrial facilities, as well as in grid-support
applications for utility customers. Direct FuelCells operate similar to large,
continuously operating batteries except they utilize a fuel to generate
electricity, such as natural gas or digester gas from wastewater treatment
facilities.  DFC power plants are hydrogen generators, and because of this are
ready today and do not require the creation of a hydrogen infrastructure.
This high-efficiency technology generates more electric power from less fuel
and with less carbon dioxide emissions than traditional combustion methods.
The sub-megawatt fuel cell power plant is a collaborative effort using Direct
FuelCell(R) technology of FuelCell Energy and the Hot Module(R) balance of
plant design of MTU CFC Solutions, GmbH, a subsidiary of DaimlerChrysler.

    About FuelCell Energy, Inc.
    

FuelCell Energy, Inc., based in Danbury, Connecticut, is a world leader in
the development and manufacture of high temperature fuel cells for clean
electric power generation, currently offering DFC power plant products ranging
in size from 250 kilowatts to 2 megawatts for applications up to 50 megawatts.
    

The Company has developed commercial distribution alliances for its
carbonate Direct FuelCell technology with MTU CFC Solutions in Europe;
Marubeni Corporation in Asia; Enbridge Inc. in Canada; Caterpillar, PPL Energy
Plus, Chevron Energy Solutions and Alliance Power in the U.S.  FuelCell Energy
is developing Direct FuelCell technology for stationary power plants with the
U.S. Department of Energy through its Office of Fossil Energy's National
Energy Technology Laboratory.  More information is available at
http://www.fuelcellenergy.com.

    About Alliance Power, Inc.
    

Alliance Power, Inc. has developed economical and environmentally
acceptable distributed generation (DG) facilities ranging in size from 1 MW to
49 MW. The company's unique approach to DG projects maximizes the use of
existing utility infrastructure to reduce costs. Alliance Power performs all
aspects of project implementation including siting, planning, permitting,
designing, constructing, financing, and operating. The company has a proven
team, and has the experience and technology to deliver DG power supplies on
schedule -- with economical and competitive rates.  Alliance Power has a staff
experienced in providing power generation development in a variety of settings
and for a wide array of clients. Alliance Power's headquarters are located in
Littleton, Colorado with regional offices across the U.S.  More information is
available at http://www.alliancepower.com.

    About Sierra Nevada Brewing Co.
    

Sierra Nevada Brewing Co. has a proud history as one of the pioneers of
the craft brewing industry and as a brewer of award-winning beers since 1981.
The Brewery is driven to operate in an efficient and environmentally sound
manner.  Sierra Nevada considers resourcefulness a philosophy and has
pioneered efforts to integrate environmental values into management decisions
and practices.  More information is available at http://www.sierranevada.com.

    

This news release contains forward-looking statements, including
statements regarding the Company's plans and expectations regarding the
development and commercialization of its fuel cell technology. All forward-
looking statements are subject to risks and uncertainties that could cause
actual results to differ materially from those projected. Factors that could
cause such a difference include, without limitation, the risk that commercial
field trials of the Company's products will not occur when anticipated,
general risks associated with product development, manufacturing, integration
of the Company's acquisition of Global Thermoelectric Inc., changes in the
utility regulatory environment, potential volatility of energy prices, rapid
technological change, and competition, as well as other risks set forth in the
Company's filings with the Securities and Exchange Commission. The forward-
looking statements contained herein speak only as of the date of this press
release. The Company expressly disclaims any obligation or undertaking to
release publicly any updates or revisions to any such statement to reflect any
change in the Company's expectations or any change in events, conditions or
circumstances on which any such statement is based.

Web Site: http://www.fuelcellenergy.com
http://www.alliancepower.com http://www.sierranevada.com