Enbridge Inc. and FuelCell Energy sign distribution agreement


Nov. 5, 2003 — Enbridge Inc., a provider in energy transportation and distribution in North America and internationally, and FuelCell Energy Inc., a manufacturer of stationary fuel cell power plants for distributed generation, announced that they have finalized an agreement whereby Enbridge will be a distributor of FuelCell Energy’s Direct FuelCellR (DFCR) products in Canada.

The agreement with FuelCell Energy introduces reliable, highly efficient, ultra-low emission base load DFC power plants (DFC300A, DFC1500 and DFC3000 with introductory ratings of 250 kilowatts, 1 megawatt and 2 megawatts, respectively) to Enbridge’s portfolio of energy services in Canada.

As part of the agreement, Enbridge has received warrants to purchase 500,000 shares of FuelCell Energy common stock. The agreement calls for the warrants to be exercisable on a graduated scale based on order flow generated by Enbridge. The full quantity of warrants will vest with order commitments for 20 megawatts of DFC power plants. The exercise prices of the warrants range from $14.65 to $19.04 per share and the warrants will expire in November 2006.

“We are very pleased to enter into this alliance with FuelCell Energy,” said Stephen J. J. Letwin, Enbridge Inc. Group Vice President, Gas Strategy & Corporate Development. “The alliance enables Enbridge to participate in a second fuel cell technology – molten carbonate – which has excellent near-term commercial potential. In addition, we look forward to continued development of the solid oxide fuel cell (SOFC) technology that has longer-term potential. Both technologies are consistent with our strategy to invest in emerging and renewable energy technologies.”

“This agreement with Enbridge continues our strategy of partnering with leading companies and suppliers to deliver our products worldwide,” said Jerry D. Leitman, president and CEO of FuelCell Energy. “Enbridge immediately becomes a leader in the Canadian commercial market for stationary fuel cell power plants, while FuelCell Energy gains the experience and marketing capabilities of one of the world’s top energy distribution companies.”

About Enbridge Inc.

Enbridge Inc. is involved in energy transportation and distribution in North America and internationally. As a transporter of energy, Enbridge operates, in Canada and the U.S., the world’s longest crude oil and liquids transportation system.

The company also has international operations and a growing involvement in the natural gas transmission and midstream businesses. As a distributor of energy, Enbridge owns and operates Canada’s largest natural gas distribution company and provides distribution services in Ontario, Quebec, New Brunswick and New York State to 1.6 million customers. Enbridge employs approximately 4,000 people, primarily in Canada, the U.S. and South America. Information about Enbridge is available on the Company’s web site at www.enbridge.com.

About Direct FuelCells

Direct FuelCells efficiently generate clean electricity at distributed locations near customer locations, including hospitals, schools, universities, hotels and other commercial and industrial facilities, as well as in grid-support applications for utility customers. Essentially, Direct FuelCells are like large, continuously operating batteries that generate electricity as long as fuel, such as natural gas, is supplied.

Since the fuel is not burned, there is no pollution commonly associated with the combustion of fossil fuels. Because hydrogen is generated directly within the fuel cell module from readily available fuels such as natural gas and wastewater treatment gas, DFC power plants are ready today and do not require the creation of a hydrogen infrastructure.

This high-efficiency technology generates more electric power from less fuel and with less carbon dioxide emissions than traditional combustion methods.

About FuelCell Energy, Inc.

FuelCell Energy, Inc., based in Danbury, Connecticut, is a world provider in the development and manufacture of high temperature hydrogen fuel cells for clean electric power generation, currently offering DFC power plant products ranging in size from 250 kilowatts to 2 megawatts for applications up to 50 megawatts.

Its wholly owned subsidiary, Global Thermoelectric Inc., is involved in the development of solid oxide fuel cell (SOFC) products and the world’s largest manufacturer and distributor of thermoelectric stationary power generators for use in remote locations.

The company has developed commercial distribution alliances for its carbonate Direct FuelCell technology with MTU CFC Solutions GmbH, a company of DaimlerChrysler AG, in Europe; Marubeni Corporation in Asia; Caterpillar, PPL Energy Plus, Chevron Energy Solutions and Alliance Power in the U.S; and Enbridge in Canada. FuelCell Energy is developing Direct FuelCell technology for stationary power plants with the U.S. Department of Energy through its Office of Fossil Energy’s National Energy Technology Laboratory. More information is available at www.fuelcellenergy.com.

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