Building Blocks for Commercialization

We intend to be the leading manufacturer of fuel cell products fWe intend to be the leading manufacturer of fuel cell products for or the global stationary power generation marketthe global stationary power generation market

Structured products to serve a variety of power generation applications

Market assessment to determine early markets for fuel cells utilization

Attaining customer valuation of product attributes

Assuring adequate production capacity to meet market demand

Developing distribution channels to connect products with targeted markets

“Current focus is execution”

FuelCell Energy Products

Introductory power plant ratings of 250 KW, 1.0 MW and 2.0 MW

MO25792901

DFC® 300

DFC® 1500

DFC® 3000

DFC/Turbine Combined Cycle

Finalize ‘proof-of-concept’ testing with 60kW turbine (30kW testing complete)

Complete concept design for 40 MW plant

“Right sizing” of initial application

DFC ComponentsDFC Components

Fuel Cell ConstructionFuel Cell Construction

ANODE

CATHODEBIPOLAR PLATE

ELECTROLYTE

FUELFLOW

OXIDANTFLOW

FuelCell Energy Products

Building block approach provides scalability and a standardized product to manufacture

Product Design is ScalableProduct Design is Scalable

MO2492a

Fuel CellStack

Module

The Power PlantModule

DFC Cogeneration OptionsDFC Cogeneration Options

Standard Production Equipment AvailableStandard Production Equipment Available

ELECTRIC

ABSORPTION CHILLING

STEAM / HOT WATER GENERATION

Courtesy: www.broadusa.comCourtesy: www.broadusa.com

Courtesy: www.turbosteam.comCourtesy: www.turbosteam.com

Courtesy: /www.jbchrsg.comCourtesy: /www.jbchrsg.com

Source: Energy Information Administration

Convergence of Power Demand, High Power Cost, GridConstraints & Environmental Factors Drive Early Adopters

Ozone Non-Attainment ClassificationsMarginalModerate

SeriousExtreme (LA) & Severe

Significant Grid Constraints

States with High Electricity Prices

Comparative Efficiencies of Electric Power Plants

Engines

Direct FuelCell®

Coal/Steam

SYSTEM SIZE (MW)0.1 1 10 100 1000

10

30

50

70 DFC®/Turbine

EFFI

CIE

NC

Y, %

(LH

V)

PA/PEM FCGas Turbines

CombinedCycle

0.01

Microturbines

Operating CharacteristicsOperating Characteristics

Base Load PlantServes as online backupUnattended operation

OutputReal power settingReactive power setting

TurndownTurndown is 50%w/o efficiency penalty

0

10

20

30

40

50

60

0 20 40 60 80 100 120

Power Plant Load,%

Electrical Conversion Efficiency, %

Unmatched Emissions Performance Facilitates DFC®

Siting (Natural Gas)

Microturbine State of the Art Conventional Direct Fuel Low Nox Recip Engine Cell

Recip Engine

0

5,000

10,000

15,000

20,000

0

25

50

75

100

125

NOx(ppm)

NOx**(lbs/MW-Yr)

17, 200 lb/MW-Yr78 ppm

4, 100 lb/MW-Yr9 ppm

4,000550,000

17 lb/MW-Yr< 0.1 ppm

** At 95% Capacity Factor, ISO Conditions,Natural Gas Fuel

NOx (ppm) NOx (lb/MW-Yr)

543,500 lb/MW-Yr

3,750 ppm

High Value Sites

Hospitals Office Buildings

Manufacturing Universities

Hotels

MO251273000

Waste Water Treatment Facilities – A Unique Opportunity

Uses anaerobic digester gas from industrial and municipal waste water treatment facilitiesUse of “bio” gas makes this a “renewable” application.King County (pictured here), Kirin Brewery

Net Cost to a “Grid Support” CustomerNet Cost to a “Grid Support” Customer

0

2

4

6

8

10

12

14

CurrentRaw Elec

Cost

Avoided/Deferred

T&D

EmissionsCredits

ReducedLine Losses

VARSupport

Net Elec Cost

cents/kwh

1¢-4¢

0¢-1¢

3¢ – 8¢

10¢0.5¢-1.0¢

Realized Cost Potentially 20Realized Cost Potentially 20--70 Percent Less70 Percent Less

3¢

0.5¢-1.0¢

Incentives Today, Volume Tomorrow

Net Cost to an “End Use” CustomerNet Cost to an “End Use” Customer

0

2

4

6

8

10

12

14

Current RawElec Cost

Heat Reliability/Security

EmissionsCredits

Net Elec Cost

cents/kwh 10¢

3¢

1¢ -2¢

0.5¢-1.5¢

0¢-1¢

5.5¢-8.5¢

Realized Cost Potentially 15Realized Cost Potentially 15--45 Percent Less45 Percent Less

Incentives Today, Volume Tomorrow

Market Opportunities – Incentives

Government Incentives Encouraging Clean, Efficient Fuel Cell PowGovernment Incentives Encouraging Clean, Efficient Fuel Cell Power Plantser Plants

InternationalGermany – 5 Eurocent/kWh credit, combined heat and power plantsJapan – 50 percent subsidy, wastewater treatment projects

U.S. Twelve states with fuel cell specific programsKey focus states include California, New Jersey, New York, Massachusetts, ConnecticutMichigan, Ohio, Texas legislation formulating

Assuring Adequate Manufacturing CapabilityAssuring Adequate Manufacturing Capability

Torrington CT Manufacturing Facility65,000 ft² facilityFabricate cell and assemble stacksExpandable to 400 MW’s / year

World-Class Partners

LADWPSouthern Co.

AMEADOEDODEPA

USN/CG

CMS Viron Energy ServicesChevron Energy Solutions

PPL Energy Plus

Emergent EnergyMWH Energy Solutions

General Dynamics

Strategic Development PartnersGlobal Original Equipment ManufacturersEnergy Solutions CompaniesSpecial Market Developers

Caterpillar DCX/MTUMarubeni

12 MW Backlog

250kW UnitsLADWP (2) Natural GasMarubeni – Kirin Anaerobic Digester GasMarubeni – Fukuoka Anaerobic Digester GasMarubeni (7) Natural GasPPL – U.S. Coast Guard – Natural Gas/CogenPPL – Starwood Hotels (2) – Natural Gas/CogenPPL (4) Natural Gas/CogenUCONN Natural Gas/CogenMTU – IZAR Natural Gas/CogenMTU – Deutsche Telecom Natural Gas/CogenMTU – EnBW/Michelin Natural Gas/CogenMTU – E-on/Degussa Natural Gas/CogenMTU – IPF KG Natural Gas/CogenMTU – VSE AG Natural Gas/Cogen

1 MW UnitKing County Anaerobic Digester Gas

625kW UnitU.S. Navy Logistic Fuels

2 MW UnitsDOE/Global Energy Coal Derived SyngasMarubeni Natural Gas

A Powerful Opportunity for Distributed Generation

First mover in stationary power fuel cell products

Direct FuelCell – clean, efficient, economical, sitable, generation or cogenerationFocus on commercial and industrial customersSeeding units into target customer groupsManufacturing, facilities establishedWorld-class distribution partnersStrong financial position