FuelCell Energy to Provide Direct FuelCell Power Plant for Pepperidge

    Business Editors/Energy Editors

    DANBURY, Conn.--(BUSINESS WIRE)--March 10, 2005--FuelCell Energy, Inc. (NasdaqNM:FCEL) and its distribution partner, PPL EnergyPlus, a subsidiary of PPL Corporation (NYSE:PPL), announced today that they are providing a 250-kilowatt Direct FuelCell(R) (DFC(R)) power plant for the Pepperidge Farm bakery facility in Bloomfield, Conn. Opened in 2003, the facility is the newest of Pepperidge Farm's eight bakeries in the U.S. Pepperidge Farm is a unit of the Campbell Soup Company. This project was made possible through the support of the Connecticut Clean Energy Fund (CCEF).
    The fuel cell power plant is expected to provide about 20 percent of the facility's base load power, with the heat byproduct being used for process steam for the bakery. PPL will own the unit and sell the electricity and heat to Pepperidge Farm under a power purchase agreement. FuelCell Energy will provide maintenance under its long-term master service agreement with PPL for its fleet of DFC power plants in North America. Delivery is expected in the third calendar quarter of 2005.
    "Pepperidge Farm is our seventh DFC power plant customer in less than three years," said Michael Kroboth, vice president of PPL EnergyPlus. "We look forward to working with Pepperidge Farm and providing them with clean, efficient and reliable power generation."
    "We are extremely pleased that our state-of-the-art Pepperidge Farm Bakery in Bloomfield will be powered by a new, state-of-the-art power generating technology," said David Watson, Pepperidge Farm Vice President, Engineering. "We benefit by having efficient and reliable onsite power, and the State of Connecticut benefits by very low emissions from a fuel cell power plant that generates electricity without combustion."
    "This partnership among PPL, Pepperidge Farm and the Connecticut Clean Energy Fund supports the fact that, with government funding assistance, our 'ultra-clean' DFC power plants can provide economical and reliable onsite power while contributing to the State's goal for a cleaner environment," said Herbert T. Nock, Senior Vice President of Marketing and Sales of FuelCell Energy. "This also demonstrates our commitment for developing repeatable business for our DFC products in the manufacturing vertical market segment."
    The Pepperidge Farm project was one of the finalists selected for funding in 2002 under the CCEF's fuel cell program designed to stimulate the development and commercialization of fuel cell technology. The CCEF invests in technology to support the creation of clean energy supply from renewable sources and fuel cells.
    "This project demonstrates our continued commitment to the development and financing of clean energy projects that helps to address the State's power needs," said Lise Dondy, Chief Operating Officer of the Connecticut Clean Energy Fund. "This project helps further the growth of the renewable industry in the state."
    This project also received a grant from the U.S. Department of Defense Climate Change Fuel Cell Program.

    About Direct FuelCells

    FuelCell Energy's Direct FuelCells efficiently generate clean electricity at distributed customer locations, including municipal/industrial wastewater treatment facilities, telecommunications/data centers, hotels, universities, manufacturing, hospitals, prisons, federal and grid support. Direct FuelCells convert readily available fuels, such as natural gas or waste gas, to electrical power with greater efficiency than any competing technology of comparable size, including other fuel cells. This high-efficiency technology generates more electric power from less fuel in its size range and has the lowest emissions of any fossil based electric generating technology because the fuel is not burned. DFC power plants can be sited at or near users, and the heat byproduct can be used for cogeneration applications such as district heating, hot water or absorption chilling for air conditioning. Depending upon location, application and load size, the Company's DFC power plants in a cogeneration configuration can achieve an overall energy efficiency of between 70 and 80 percent. The sub-megawatt fuel cell power plant is a collaborative effort using Direct FuelCell(R) technology of FuelCell Energy and the Hot Module(R) balance of plant design of MTU CFC Solutions, GmbH, a subsidiary of DaimlerChrysler.

    About FuelCell Energy, Inc.

    FuelCell Energy, Inc., based in Danbury, Connecticut, is a world leader in the development and manufacture of high temperature fuel cells for clean electric power generation. The Company has developed commercial distribution alliances for its carbonate Direct FuelCell products with world class companies such as PPL Energy Plus, Caterpillar, Alliance Power, Chevron Energy Solutions and LOGANEnergy in the U.S.; Marubeni Corporation in Asia; MTU CFC Solutions in Europe; and Enbridge Inc. in Canada. FuelCell Energy developed its patented 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.
    FuelCell Energy is also developing next generation high temperature fuel cell products, such as a diesel fueled marine Ship Service Fuel Cell, a combined-cycle DFC/Turbine(R) power plant and solid oxide fuel cells through its investment in and partnership with Versa Power Systems for applications up to 100 kilowatts. More information is available at http://www.fuelcellenergy.com.

    About PPL Corporation

    PPL Corporation (NYSE: PPL), headquartered in Allentown, Pa., controls more than 12,000 megawatts of generating capacity in the United States, sells energy in key U.S. markets and delivers electricity to nearly 5 million customers in Pennsylvania, the United Kingdom and Latin America. More information is available at www.pplweb.com.

    About Pepperidge Farm

    Pepperidge Farm, Incorporated, based in Norwalk, Connecticut, is a leading provider of wholesome, premium quality fresh bakery products, cookies and crackers, and frozen foods. Among the company's most popular products are Chocolate Chunk and Milano(R) cookies, Goldfish(R) crackers, and more than 50 varieties of fresh baked breads including Swirl, Pepperidge Farm Farmhouse, and Natural Whole Grain breads.
    Pepperidge Farm was founded in Connecticut in 1937 by Margaret Rudkin, an entrepreneurial homemaker who began baking fresh, all-natural bread for her allergy-afflicted son. The company is now a nationwide business with 8 manufacturing facilities, almost 5,000 employees, 3,000 independent distributorships, and just over $1 billion in sales. Pepperidge Farm was acquired by Campbell Soup Company in 1961.
    Pepperidge Farm's 200,000-square-foot Bloomfield bakery has about 300 employees.

    About the Connecticut Clean Energy Fund

    The Connecticut Clean Energy Fund invests in technology to support the creation of clean energy supply from renewable sources and fuel cells in order to strengthen Connecticut's economy, protect community health, improve the environment, and promote a secure energy supply for Connecticut. The Fund, financed by a surcharge on ratepayers' electric utility bills, is administered by Connecticut Innovations.

    This news release contains forward-looking statements, including statements regarding the Company's plans and expectations regarding the development and commercialization of its fuel cell technology. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could cause such a difference include, without limitation, the risk that commercial field trials of the Company's products will not occur when anticipated, general risks associated with product development, manufacturing, changes in the utility regulatory environment, potential volatility of energy prices, rapid technological change, and competition, as well as other risks set forth in the Company's filings with the Securities and Exchange Commission. The forward-looking statements contained herein speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based.

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CONTACT: FuelCell Energy, Inc. Steven P. Eschbach, 203-825-6000 seschbach@fce.com

KEYWORD: CONNECTICUT INDUSTRY KEYWORD: ENERGY FOODS/BEVERAGES RETAIL UTILITIES MARKETING AGREEMENTS SOURCE: FuelCell Energy, Inc.

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