FuelCell Energy Enters Into Partnership Agreement With Abengoa to Develop Localized Fuel Cell Power Plants for Europe and Latin America

Targeting Renewable Biogas and Bioethanol Market Opportunities in Europe and Latin America 300 Kilowatt Pilot Project to be Installed at Abengoa Headquarters in Seville, Spain

DANBURY, Conn., Dec. 12, 2011 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc.

(Nasdaq:FCEL) a leading manufacturer of ultra-clean, efficient and reliable
power plants, today announced a partnership agreement with Abengoa S.A. to
develop localized stationary fuel cell power plants for markets in Europe
and Latin America. Abengoa will develop, manufacture and market stationary
fuel cell power plants using fuel cell modules provided by FuelCell Energy.
The initial pilot installation will be at the Abengoa headquarters in Palmas
Campus Palmas Altas, Spain using a
300 kilowatt proprietary Direct FuelCell(R) (DFC(R)) module supplied by
FuelCell Energy and balance of plant designed and manufactured by Abengoa.
Renewable biogas markets will be targeted and the parties will cooperate to
enhance the capability and market opportunities for DFC power plants
operating on liquid biofuels.

"FuelCell Energy has developed leading edge carbonate fuel cell technology
that is unsurpassed for meeting utility-scale power needs for ultra-clean
baseload distributed generation" said Javier Brey, General Manager of
Abengoa Hidrógeno. "The fit is natural between our organizations and
we look forward to growing the market for ultra-clean and efficient
distributed generation fuel cell power plants in Spain as well as in Europe
and Latin America, where we already have a presence. We will develop and
manufacture in Spain stationary carbonate fuel cell plants by starting from
FCE technology, and it will increase also the value of our partnership. In
the short term, we plan to develop technology together."

The partners will target markets in Europe and Latin America for
megawatt-class DFC power plants, focusing on municipalities, large
industrial power users and facilities that generate renewable biogas.
These markets value high efficiency, distributed generation and the ability
to generate virtually emission-free clean power from renewable fuels, all
attributes of DFC power plants. DFC power plants are fuel flexible, capable
of operating on clean natural gas or renewable biogas.

Under the partnership, Abengoa will use its experience with biofuels to
develop a fuel processing system that will support the use of liquid
biofuels as a fuel source for DFC power plants. Ultra-clean, efficient and
reliable fuel cell power plants that can operate on liquid biofuels are
attractive in Latin American markets such as Brazil where sugar cane is
widely used as a feedstock to create ethanol.

"Abengoa has experience developing fuel cell systems with value added
capabilities" said Chip Bottone, President and Chief Executive Officer for
FuelCell Energy, Inc. "When combined with their European and Latin American
business and marketing reach through the Abengoa organization, we see
excellent prospects for market expansion in Europe as well as developing the
Latin American market for ultra-clean baseload distributed generation fuel
cell power plants."

Fuel cells generate power through an electrochemical reaction that does not
require combustion. Due to this lack of combustion, fuel cells emit
virtually no pollutants, resulting in the generation of ultra-clean
electricity. Fuel cells can achieve up to 90 percent efficiency when
configured to use the high quality heat generated by the power plant in a
combined heat & power (CHP) mode. High efficiency reduces fuel costs and
carbon emissions and producing both electricity and heat from the same unit
of fuel drives economics while simultaneously promoting sustainability.
Biogas producers require heat in their processes so the ability for DFC
plants to use biogas as a fuel and produce both ultra-clean power and usable
heat helps convert a waste disposal challenge into an economical and
environmentally friendly power generation solution.

The world-class Direct FuelCell technology of FuelCell Energy will be
combined with the extensive customer network and service expertise of
Abengoa to sell DFC fuel cells in the target geographies. FuelCell Energy
will export fuel cell modules manufactured at the Company's production
facility in the USA and Abengoa will supply Spanish designed and built
balance of plant to complete the fuel cell power plant.
Completion of a distribution agreement is expected to follow this
announcement within the next six months.

Abengoa (MCE:ABG) is an international company that applies innovative
technology solutions for sustainable development in the energy and
environment sectors, generating electricity from the sun, producing
biofuels, desalinating sea water and recycling industrial waste. For further
information: www.abengoa.com

About FuelCell Energy

Direct FuelCell(R) power plants are generating ultra-clean, efficient and
reliable power at more than 50 locations worldwide. With over 180 megawatts
of power generation capacity installed or in backlog, FuelCell Energy is a
global leader in providing ultra-clean baseload distributed generation to
utilities, industrial operations, universities, municipal water treatment
facilities, government installations and other customers around the world.
The Company's power plants have generated over 900 million kWh of power
using a variety of fuels including renewable biogas from wastewater
treatment and food processing, as well as clean natural gas. For more
information please visit our website at www.fuelcellenergy.com

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