California Public Utilities Commission Raises Clean Energy Incentive Cap to 3
Megawatts
New Ruling Also
Increases Funds Available for Larger Projects by $96 Million
DANBURY, Conn., Apr 28, 2008 (PrimeNewswire
via COMTEX News Network) -- FuelCell Energy, Inc. (Nasdaq:FCEL), a leading manufacturer of high efficiency
ultra-clean power plants using renewable and a variety of other fuels for
commercial, industrial and utility customers, announced that the California
Public Utilities Commission (CPUC) has raised the cap on monetary incentives
for clean energy projects to 3 megawatts (MW) to qualify for funds under the
state's Self-Generation Incentive Program (SGIP). To fund the existing
program's expansion, the SGIP will be supplemented in 2008 and 2009 with an
additional $96 million of unspent SGIP funds from prior years. The new ruling
is effective immediately.
The SGIP was created
in 2001 to use distributed generation resources, like fuel cells, to reduce
greenhouse gases and it currently extends through December 31, 2011. The
program is administered by California's
utilities and, in each of the last two years, $83
million has been available to fund the installation of clean energy
generation projects throughout California.
The SGIP previously reimbursed fuel cell power plant owners $4,500 per
kilowatt for biogas-run units and $2,500 for those operating on natural gas
for installations of up to 1 MW.
Under the revised
SGIP, fuel cell projects up to 3 MW are now eligible for the subsidy. The
first 1 MW of a project is entitled to 100 percent of the incentive; the
second MW of power is eligible for 50 percent of the incentive; and the third
MW receives 25 percent of the incentive.
"By using unspent
SGIP monies from prior years to support larger projects we are ensuring that
this program fulfills its mission of facilitating the evolution of the next
generation of distributed energy technologies," said CPUC President
Michael R. Peevey. "I am optimistic that this step will advance the
installation of more clean energy generation, like fuel cells, and enable California to better
take advantage of clean, reliable technologies as we transition to the
realities of a carbon-constrained world."
California
customers have purchased over 19 MW of DFC power plants for applications as
diverse as wastewater treatment, hotels, universities, correctional facility
and breweries. DFC fuel cells meet or exceed all the California Air Resources
Board requirements and are considered "ultra-clean" because of
their low emissions. This designation reduces permitting requirements for new
fuel cell installations.
DFC fuel cells produce
power electrochemically (without combustion) and in California they are considered ultra-clean
because they produce near-zero NOX, SOX and particulate matter. They are 47
percent electrically efficient and, when the byproduct heat is being used for
space or hot water heating, up to 80 percent efficient. This efficiency means
they use less fuel -- saving on energy costs and emitting much less CO2 (a
major greenhouse gas) than combustion-based power plants of similar size.
"The Commission's
decision to raise the cap and increase the funding available for larger
ultra-clean power generation, like our DFC power plants, demonstrates the
importance of fuel cells in California's plan for clean energy
generation," said William Karambelas, Vice President Business
Development at FuelCell Energy. "Fuel cells are ideal for large
municipal wastewater facilities and other big electric load users like
universities, hotels, prisons and hospitals that require highly efficient,
24/7 energy solutions."
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 U.S. 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, 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.
This news release was
distributed by PrimeNewswire, www.primenewswire.com
SOURCE: FuelCell
Energy, Inc.
FuelCell Energy, Inc.
Lisa Lettieri
203-830-7494
ir@fce.com