FuelCell Energy to Advance Coal Gasification Demo

FuelCell Energy, Inc., a developer and manufacturer of Direct FuelCell power plants, has received approval from the U.S. Department of Energy’s National Energy Technology Laboratory (NETL) to advance the demonstration of a 2 MW fuel cell power plant operating on coal-derived gas by moving the fuel cell site from the Kentucky Pioneer Energy Integrated Gasification Combined Cycle (IGCC) site to the Wabash River Energy, IGCC site.

Danbury, Connecticut – July 31, 2002 [] Both Projects are owned by Global Energy, Inc. Contract modifications approved by the DOE and Global Energy, Inc. include appropriation of funding for the remainder of the project and the site relocation. The Kentucky Pioneer Energy site is still in development while the existing Wabash River Energy site is in operational status. Site construction for the fuel cell is still subject to final environmental approval. The remaining project cost will be US$32.3 million, with 50 percent of the cost shared by the DOE. “Relocating the fuel cell to an operating clean coal plant will give us a two-year jump start on demonstrating a high-tech power system that virtually eliminates air pollutants and significantly reduces greenhouse gas emissions,” Secretary of Energy Spencer Abraham said. “President Bush has highlighted both clean coal technologies and fuel cells in his Clear Skies and Climate Change Initiatives, and this gives us a way to bring both together in an early preview of a possible power plant of the future.” Design work was substantially completed earlier this year. As a result, FuelCell Energy will recognize US$3 to US$5 million more in research and contract revenues as well as corresponding cost share expenses in the third fiscal quarter of 2002. Additional revenue and cost recognition for the remainder of the project will be proportionate to its development for the balance of this fiscal year and continuing into fiscal year 2003. (Nasdaq: FCEL)