Danbury, Conn., Oct. 16, 2003 — FuelCell Energy Inc., a manufacturing of stationary fuel cell power plants for distributed generation, announced that it has entered into a Memorandum of Understanding with Enbridge Inc., a provider in energy transportation and distribution in North America and internationally, to develop a strategic distribution alliance agreement for its Direct FuelCell® (DFC®) products in Canada.
The alliance agreement, the definitive terms still subject to negotiation by both companies, is expected to include an initial term of three years, and incentive warrants issued to Enbridge which will vest based on order commitments for DFC power plants.
The alliance agreement is expected to be completed prior to the special shareholder meetings required to approve the combination agreement between FuelCell Energy, Inc. and Global Thermoelectric Inc. scheduled for October 31, 2003.
“Developing this distribution alliance agreement with Enbridge is consistent with our strategy to partner with global energy industry leaders to introduce and develop markets for our DFC products,” said Jerry D. Leitman, president and CEO of FuelCell Energy, Inc. “We have demonstrated successes in Japan, Europe and the U.S., and we look forward to building upon those with Enbridge in Canada.”
Enbridge has agreed to not oppose the FuelCell Energy/Global combination agreement.
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 involved in the development and manufacture of highly efficient 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.
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; and Caterpillar, PPL Energy Plus, Chevron Energy Solutions and Alliance Power in the U.S. 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.