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Updated: 08:40 AM EDT
FuelCell Energy's Ultra-Clean Power Plant to Generate Base Load Electricity for Second U.S. Government Training Center in California

DANBURY, Conn.--(BUSINESS WIRE)---- 500 Kilowatt Direct FuelCell Power Plant Sale by Distributor LOGANEnergy to Maintain Essential Power While Meeting or Exceeding Region's Air and Water Protection Standards

FuelCell Energy, Inc. (NasdaqNM:FCEL), a leading manufacturer of ultra-clean power generation plants for commercial and industrial customers, today announced the sale of a 500 kilowatt (kW) Direct FuelCell(R) (DFC(R)) power plant to LOGANEnergy for the US Navy for anticipated use at the U.S. Marine Corps Base, Camp Pendleton, in California.

After compliance with all pertinent environmental requirements, LOGANEnergy will install the power plant, consisting of two 250 kW DFC300MA(TM) units, to provide base load electricity and heat energy for a Bachelor Enlisted Quarters (BEQ) that houses over 200 Marines and a Mess Hall that serves over 400 personnel daily at Camp Pendleton. The power plant is scheduled to be up and running in late calendar year 2006. FuelCell Energy's distribution partner LOGANEnergy will serve as prime contractor overseeing installation and operation of the DFC power plants and will also subcontract maintenance services to FCE under a multi-year service contract.

The federal government will have the opportunity to purchase two additional units and raise the fuel cell capacity on the Base to 1 megawatt. The fuel cell installation may also be eligible to receive up to $1.25 million from the State of California Self Generation Incentive Program.

"This is the second training facility this year to select DFC power plants to meet its base load electricity needs and to increase energy security," said R. Daniel Brdar, FuelCell Energy's President and COO. "Our products enhance the reliability of power for government applications and we continue to develop repeatable business opportunities for our ultra-clean DFC power plants in this key vertical market segment."

Marine Corps Base, Camp Pendleton has always been proactive in energy conservation and energy efficiency; this year the Base has won its second consecutive Presidential & Secretary of the Navy (SECNAV) Energy Award. Jeff Allen, Base Energy Manager; Randy Monohan and Tim O'Hara, Resource Efficiency Managers, have been supportive advocates for the fuel cells to demonstrate the emerging technology and its benefits. Camp Pendleton conducts a broad spectrum of training for active and reserve military units from all branches of the armed services, as well as for personnel from national, state and local agencies. Training programs at Camp Pendleton take place in an area inhabited by 400 species of mammals and birds, bordering 17 miles of coastline. The ultra-clean fuel cells exemplify the base's commitment to protect the environment and habitat.

"The fuel cell power plant provides an ultra-clean source of reliable power and complements the base's existing onsite generation capability," said Jeff Allen. Upon completion of all required environmental analysis, "the operation is expected to save us money over our previous power purchasing cost, while increasing energy security at the base, and is consistent with our environmental objective to integrate natural resource management with training and mission support requirements."

In addition to LOGANEnergy and FuelCell Energy, Albion Environmental, GBC Electrical Services and Mojave Mechanical will provide expertise during construction phases at the Pendleton site.

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Veni Vidi Vici

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