FuelCell Energy's Cost Effective and Efficient Carbon Capture Progresses Under U.S. Department of Energy Program

"This project is making measurable progress for providing an efficient and cost effective carbon concentration and capture solution for coal-fired power plants, which has compelling market applicability"

DANBURY, Conn., Aug. 28, 2014 -- FuelCell Energy, Inc.

(Nasdaq:FCEL), a global leader in the design, manufacture, operation and
service of ultra-clean, efficient and reliable fuel cell power plants,
announced the progression into stage three of a carbon capture development
project supported by a previously announced award from the U.S. Department
of Energy Office of Fossil Energy's Carbon Capture Program (DOE), and
implemented by the National Energy Technology Laboratory. The project
focuses on using Direct FuelCell(R) (DFC(R)) technology to efficiently and
cost effectively separate carbon dioxide
(CO2) from the emissions of coal-fired power plants. After achieving the
project design and financial goals established for phases one and two,
FuelCell Energy has received $1.2 million to continue into phase three of
the project including the validation of the CO2 capture process using a DFC
fuel cell stack.

"This project is making measurable progress for providing an efficient and
cost effective carbon concentration and capture solution for coal-fired
power plants, which has compelling market applicability,"
said Chip Bottone, Chief Executive Officer at FuelCell Energy. "This next
phase of the project advances the solution to demonstrate a commercial fuel
cell stack, which is a significant step towards commercialization."

Analysis already undertaken illustrates that the DFC CO2 capture systems
have advantages over existing commercial technologies, due to their ability
to capture CO2 from fossil based power plants while also producing
additional power. The results have indicated that the DFC carbon capture
plants have the potential of meeting the DOE's carbon capture cost goal of
$40/ton for commercial applications.

The project began in late 2011 and consists of system design, cost analysis,
and long-term testing of a Direct FuelCell(R) (DFC(R)) stack.
Funding for the project is awarded in stages as certain progress milestones
are reached. The final $1.2 million DOE award of the total
$3 million project is now authorized to further advance the carbon capture
system. This funding authorization follows favorable results achieved from
the technology and economic analysis conducted in the prior stages of
research and development. This third stage includes validation of the DFC
technology capabilities by using a fuel cell stack to separate 90% of CO2
from a simulated coal gas plant exhaust.
This test will be the final stage of the validation for the technology
before field trials using a DFC power plant.

FuelCell Energy's DFC technology separates and concentrates CO2 as a side
reaction during the power generation process. In this application of the
technology, the exhaust of a coal fired plant is directed to the air intake
of a DFC power plant, which separates and concentrates the
CO2 in the exhaust for commercial use or sequestration. Another side
reaction that occurs when the fuel cell is used in this application is the
destruction of 60 to 70 percent of smog-producing nitrogen oxide
(NOx) emissions in coal plant streams as the exhaust passes through the fuel
cell. This reduces the cost of NOx removal equipment for coal-fired power
plant operators while benefiting the environment.
Since DFC power plants produce power efficiently and with virtually zero
emissions, the net result is a very attractive solution to prevent the
release of green-house gases by coal-fired power plants while simultaneously
increasing the net efficiency and power output of the plant. Additional
benefits include reduction of the operating cost related to removal of NOx
and reduction in water usage as existing carbon capture technologies are
water intensive.

About FuelCell Energy

Direct FuelCell(R) power plants are generating ultra-clean, efficient and
reliable power at more than 50 locations worldwide. With more than
300 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 more than 2.7
billion kilowatt hours of ultra-clean 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

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