PORTLAND, Maine and DANBURY, Conn., April 29, 2008 (PRIME NEWSWIRE) -- Energy East Corporation (NYSE:EAS) and FuelCell Energy, Inc. (Nasdaq:FCEL), a leading manufacturer of high efficiency ultra-clean power plants for commercial, industrial and utility customers, announced that the Connecticut Department of Public Utility Control has approved their financing commitment for the Milford, Conn. DFC-ERG(tm) project. Under the financial commitment, Energy East will provide 80 percent of the construction phase financing and will acquire 80 percent of the completed project. The parties can now sign an Energy Purchase Agreement with Connecticut Light and Power.
DFC-ERG Milford, LLC will produce 9.0 MW of ultra-clean electric power using three of FuelCell Energy's DFC3000(tm) power plants in combination with a 1.8 MW pipeline turbo expander. The DFC-ERG system will capture the heat byproduct from FuelCell Energy's fuel cells to use in the turbo expander. The turbo expander will generate electricity using the pressure differential between the transportation and distribution pipes at Southern Connecticut Gas Company's Milford, Conn. gate station. This means that DFC-ERG installations turn the cost of wasted energy into ultra-clean, revenue-producing energy.
The DFC-ERG has an electrical efficiency of approximately 60 percent, compared to 30-40 percent for other similarly sized combustion-based power generation systems. This high efficiency -- second to none in the distributed energy market -- means that less fuel is needed to create a unit of energy and significantly lower levels of CO2, a major greenhouse gas, are produced. Fuel cells make power electrochemically (without combustion), so they also produce almost no NOX, SOX and particulate matter.
"This project is another example of Energy East's commitment to environmental sustainability," said Wes von Schack, Chairman and CEO of Energy East. "By utilizing otherwise wasted energy from pressure differentials on our natural gas system, this initiative achieved the highest rating in the second round of Connecticut's Clean Energy Fund Project 150."
Connecticut is one of 28 states and Washington D.C. that have an RPS mandate. Under Connecticut's RPS, utilities are required to purchase 20 percent, or approximately 800 MW, of their power from clean energy sources by 2020. Under Connecticut's Project 150, 150 MW of clean power generation must be under contract with the utilities by October 1, 2008. Direct FuelCell(r) (DFC(r)) fuel cells are an ideal part of the clean energy solution for RPS states because they provide reliable baseload power 24 hours a day with near-zero emissions and low CO2. Because of their quiet operation, low profile and siting flexibility, fuel cells can be located in grid constrained areas where the power is most needed. In addition, distributed generation fuel cells can be economical compared to the cost of building large new central generation power plants and associated transmission and distribution.
"We're excited to be working with Energy East on the largest DFC-ERG installation in the world," said R. Daniel Brdar, Chairman and CEO of FuelCell Energy. "This project, the first of its kind to be built in the United States, has broad applicability to the distribution systems of local gas distribution companies all over the world."
Enbridge, Inc. (NYSE:ENB, TSX:ENB), FuelCell Energy's partner in the development of the DFC-ERG, has identified 40-60 MW of opportunities for the DFC-ERG system in Toronto and northern New York and another 200-300 MW in California and the northeastern U.S.
About Energy East Corporation
Energy East Corporation (NYSE:EAS) is a respected super-regional energy services and delivery company serving about 3 million customers throughout upstate New York and New England. By providing outstanding customer service and meeting customers' energy requirements in an environmentally-responsible manner, Energy East will continue to be a valuable asset to the communities we serve. Energy East's operating companies are Central Maine Power (CMP), Connecticut Natural Gas (CNG), New York State Electric & Gas (NYSEG), Rochester Gas and Electric (RG&E) and Southern Connecticut Gas.
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 ultra-clean and high efficiency DFC(r) fuel cells are generating power at over 40 locations worldwide. The company's power plants have generated more than 200 million kWh of power using a variety of fuels including renewable wastewater gas, biogas from beer and food 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.
About Enbridge, Inc.
Headquartered in Calgary, Alberta, Canada, Enbridge is a leader in energy delivery in North America. The Company transports natural gas and crude oil, which are used to heat homes, power transportation systems, and provide fuel and feedstock for industries. Enbridge operates in Canada and the United States, the world's longest oil and liquids pipeline system. Enbridge is also actively involved in natural gas transmission, gas distribution, renewable and alternative energy, and international energy projects. Enbridge's vision is to be North America's leading energy delivery company, and its key objective is to generate superior shareholder value. The Company employs more than 5,500 people, primarily in Canada, the United States and South America. Enbridge Inc. common shares trade on the Toronto and New York stock exchanges under the symbol "ENB." Visit www.enbridge.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, general risks associated with product development, manufacturing, changes in the utility regulatory environment, potential volatility of energy prices, rapid technological change, competition, and the Company's ability to achieve its sales plans and cost reduction targets, 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.