DANBURY, Conn., June 4, 2007 (PRIME NEWSWIRE) -- FuelCell Energy, Inc. (Nasdaq:FCEL), a leading manufacturer of secure ultra-clean power plants using a variety of fuels for commercial and industrial customers, today announced that its distribution partner POSCO Power has sold 5.1 megawatts (MW) of new power plants that allow electric utility customers in South Korea to generate clean energy and comply with the country's strict greenhouse gas reduction targets.
Each of the three projects will operate in a grid-support capacity, supplying energy output directly onto the existing electric network. By increasing the portion of energy generated by renewable and ultra-clean technologies, the utilities are able to achieve emission goals established under directives set by the South Korean government.
Utility customers purchasing the Direct FuelCell(r) (DFC(r)) power plants through POSCO Power include two generating company (genco) subsidiaries of Korea Electric Power Company (KEPCO), as well as a private Independent Power Producer (IPP) recently formed by investors. Each power plant purchase will use government funding made available under a green energy program instituted last year by South Korea's Ministry of Commerce, Industry and Energy (MOCIE).
"Under the leadership of our strategic alliance partner, POSCO Power, South Korea has emerged as one of our fastest growing overseas markets," said Benjamin Toby, Vice President of Business Development for FuelCell Energy. "Supplying our fuel cell products to Korea's top utility companies is a clear demonstration of how utilities around the world can employ our ultra-clean fuel cell power plants to economically generate baseload power while helping support greenhouse gas reduction goals."
Specifics about the customers and site locations will be disclosed by POSCO Power at a later date. One customer will purchase two DFC1500MA units, comprising a 2.4 MW power plant which will support the area's electrical grid, exporting energy to the local utility and providing electricity for approximately 2,000 households. A 300 kW DFC300 power plant will also go to a repeat power generation customer.
The IPP will install and operate a 2.4 MW power plant that consists of a single DFC3000 unit. This is the first commercial sale of FuelCell Energy's DFC3000 product. The customer had considered meeting its renewable energy commitments via solar power and/or the purchase of renewable energy credits, but elected to purchase a DFC power plant instead after realizing it offered more favorable financial returns.
Earlier this year, FuelCell Energy established a 10-year manufacturing and distribution agreement with POSCO Power to provide DFC power plants in South Korea. POSCO Power, a subsidiary of one of the world's largest steelmakers, POSCO (NYSE:PKK), announced plans to construct a manufacturing facility for building the balance of plant equipment for FuelCell Energy power plants its sells in Asia.
About FuelCell Energy, Inc.
FuelCell Energy is the world leader in the development and production of stationary fuel cells for commercial, industrial, municipal and utility customers. FuelCell Energy's secure, ultra-clean and high efficiency DFC(r) fuel cells are generating power at over 60 installations worldwide. The company's power plants have generated more than 150 million kWh of power using a variety of fuels including renewable wastewater gas, biogas from beer, onion, and milk processing as well as natural gas and other hydrocarbon fuels. FuelCell Energy has partnerships with major power plant developers, trading companies and power companies around the world. The company also receives substantial funding from the US Department of Energy and other government agencies for the development of leading edge technologies such as hybrid fuel cell/turbine generators and solid oxide fuel cells. For more information please visit our website at www.fuelcellenergy.com.
This news release contains forward-looking statements, including statements regarding the Company's plans and expectations regarding the continuing 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.