BOSTON-- FuelCell Energy, Inc. (FCEL), a leading manufacturer of stationary fuel cell power plants, has begun generating electricity with a 250-kilowatt Direct FuelCell(R) (DFC(R)) power plant at the site of the Democratic National Convention in Boston. The fuel cell is part of a distributed generation "micro-grid" that is providing electricity to support the existing grid to meet the expected additional demand of the convention. 
 
Because fuel cells, which operate on natural gas, generate electricity electrochemically (instead of by combustion), there are virtually none of the pollutants associated with traditional power plants that burn fossil fuels. In fact, FuelCell Energy's DFC power plants are part of a new generation of "ultra-clean" power plants that are now available to generate power around the world. "Ultra-clean" power generators meet or exceed the most stringent air quality standards in the nation, utilize currently available fuels, provide 24/7 power, and provide an important link to the future hydrogen economy. 

"Being the first fuel-cell powered Convention is just one of the ways this event will make history," said Boston Mayor Thomas M. Menino. "We are very pleased that Boston and the Democratic National Convention will be a showcase for how an environmentally sound energy policy is good for Boston and for America." 

"The DFC power plant clearly shows the flexibility of stationary fuel cells for commercial and industrial applications," said Herbert T. Nock, Senior Vice President of Marketing and Sales of FuelCell Energy. "We delivered, set up and started the power plant in less than two weeks. The unit is so clean it can operate in downtown Boston with no impact on air quality. And it uses half the fuel because it is twice as efficient as comparably sized power plants." 

Nock also noted that the Convention power plant demonstrates how fuel cells are an ideal way to shore up the existing electricity grid in the United States. "As we approach the one-year anniversary of the east coast blackout, it's important to remember that the power grid is still fragile and that fuel cells can help make it stronger and more reliable," said Nock. 

About the Fuel Cell Power Plant 

The unit at the convention is FuelCell Energy's DFC300A model power plant, a unit with enough power to provide the base load electricity requirements of a 300-room hotel, will directly convert natural gas, through a patented internal reforming process, into the hydrogen needed to electrochemically produce electricity. This unit will add to the Company's 30 other customer installations throughout the world that, to date, have generated more than 40 million kilowatt hours of electricity. 

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 hydrogen fuel cells for clean electric power generation. The Company has developed commercial distribution alliances for its carbonate Direct FuelCell products 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 developed its patented 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. 

FuelCell Energy is also developing next generation high temperature fuel cell products, such as a diesel fueled marine Ship Service Fuel Cell, a combined-cycle DFC/Turbine(R) power plant and solid oxide fuel cells for applications up to 100 kilowatts. More information is available at http://www.fuelcellenergy.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, 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.