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FuelCell Energy announces new DFC project award for Navy



Danbury, Conn., Oct. 3, 2003 -- FuelCell Energy Inc. announced that it has received a new $954,000 contract award for participation in the U.S. Navy Marine Fuel Cell Technology Verification - Trainer Program.

The objective of the program, anticipated to last 16 months, is to accelerate introduction of fuel cell power plants to U.S. naval ships and facilities.

Specific tasks of this new program include engineering and development for installing diesel-fueled Direct FuelCell® (DFC®) power plants at naval facilities and on ships, operational testing of a DFC300A power plant in Danbury from a control center in Maine, and development of a marine fuel cell simulator for use as an operator training aid.

"This project demonstrates the Navy's continued commitment to introduce clean, efficient and reliable stationary fuel cells for base and ship service power," said Hans Maru, Chief Technology Officer of FuelCell Energy. "This will advance the development of our U.S. Navy-sponsored program that will design, build and operate a land based DFC power plant using marine diesel fuel."

The company's contract award is part of a larger, $2.6 million project awarded by the Office of Naval Research (contract number N00014-03-C-0442). The University of Maine and Maine Maritime Academy will also participate in the program to obtain real-world experience with fuel cell operations and to gain a better understanding of the installation and operating characteristics of ship service fuel cell power plants.

FuelCell Energy is currently working on the second phase of a contract with the Office of Naval Research to deliver a 500-kilowatt ship service fuel cell power plant for land-based demonstration at the Naval Sea Systems Command in Philadelphia in 2004. This $21.6 million cost-shared project started in 2000 and is a continuation of an earlier $4.6 million contract that completed the conceptual design and testing of the critical components for the marine fuel cell module. The Company expects that successful demonstration of this project can lead to additional diesel fuel cell power plant applications for commercial ships and island power generation.

About Direct FuelCells

Direct FuelCells efficiently generate clean electricity at distributed locations near the customer, including hospitals, schools, universities, hotels and other commercial and industrial facilities, as well as in grid support applications for utility customers. In essence, Direct FuelCells are like large, continuously operating batteries generate electricity as long as fuel, such as natural gas, is supplied. Since the fuel is not burned, there is no pollution commonly associated with the combustion of fossil fuels. Because hydrogen is generated directly within the fuel cell module from readily available fuels such as synthesis gas, natural gas and wastewater treatment gas, DFC power plants 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 methods using combustion.

About FuelCell Energy, Inc.

FuelCell Energy, Inc., based in Danbury, Connecticut, is involved in the development and manufacture of highly efficient hydrogen 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.

FuelCell Energy has developed commercial distribution alliances for its carbonate Direct FuelCell technology with MTU CFC Solutions GmbH, a company of DaimlerChrysler AG, in Europe; Marubeni Corporation in Asia; and 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 their Office of Fossil Energy's National Energy Technology Laboratory. More information is available at www.fuelcellenergy.com.




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