Enabling Wind, Solar, and Biofuel Energy using HydrogenPresented at National Hydrogen Association Conference, May 4, 2010

FuelCell Energy, Inc.NASDAQ: FCEL

Fred C. JahnkeSenior Manager, Hydrogen Programs

Pinakin PatelDirector of Special Systems and Research

Safe Harbor Statement

This presentation contains forward-looking statements, including statements regarding the company's plans and expectations regarding the development and commercialization of fuel cell technology. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. The forward-looking statements speak only as of the date of this presentation. The company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the company's expectations or any change in events, conditions or circumstances on which any such statements are based.

Overview

•Opportunity in renewable Energy– Wind, Solar need energy storage

•Hydrogen as Energy Storage– Renewable Hydrogen from biomass and wind

•FuelCell Energy DFC-H2 Technology– synergy with other technologies

•Opportunities for hydrogen community

Renewable Power

http://en.wikipedia.org/wiki/Renewable_energy_in_the_United_States

Ter

aWat

t-h

ou

rs /

yr

Santa Barbara, Californiahttp://www.cecsb.org/index.php?option=com_content&task=view&id=61&Itemid=100&gclid=CIHo9MaimJ0CFUdM5QodLVRm2Q

First, it is generally the most economical source of renewable energy, competitive with and sometimes cheaper than electricity from fossil fuels and nuclear power. Good sites can produce wind power at eight to ten cents per kilowatt-hour (kWh) – even less when the federal tax credit is factored in. (By comparison, the cost of electricity from a new natural gas plant in California is ten to eleven cents per kWh.) Wind power is expected to become even more cost-effective as the industry develops larger turbines and the price of fossil fuels continues to rise, as it surely will in the long-term.

Second, we have enormous potential for wind power in this region. For example, the 97.5 megawatt (MW) wind farm recently approved near Lompoc could supply 285 gigawatt hours (GWh) a year -- about a tenth of our county’s current demand for electricity.  In Santa Barbara County, wind power potential is much, much greater. Professor Dan Kammen -- chairman of UC Berkeley’s Energy Resources Group – and his graduate students, in a study performed for CEC, found potential for nearly 3,800 GWh of wind at onshore sites in the county.  When adding the potential from offshore sites and small wind turbines, Kammen calculated a potential of 290,000 GWh. In other words, wind power in our region could theoretically produce over 100 times our current demand for electricity.

Wind Power is the Opportunity

• Wind Power is now rapidly expanding

New wind projects completed in 2008 account for about 42% of the entire new capacity added in the U.S. during the year, 8,800 MW of Powerhttp://en.wikipedia.org/wiki/Wind_power_in_the_United_States

Santa Barbara, Californiahttp://www.cecsb.org/index.php?option=com_content&task=view&id=61&Itemid=100&gclid=CIHo9MaimJ0CFUdM5QodLVRm2Q

First, it is generally the most economical source of renewable energy, competitive with and sometimes cheaper than electricity from fossil fuels and nuclear power. Good sites can produce wind power at eight to ten cents per kilowatt-hour (kWh) – even less when the federal tax credit is factored in. (By comparison, the cost of electricity from a new natural gas plant in California is ten to eleven cents per kWh.) Wind power is expected to become even more cost-effective as the industry develops larger turbines and the price of fossil fuels continues to rise, as it surely will in the long-term.

Second, we have enormous potential for wind power in this region. For example, the 97.5 megawatt (MW) wind farm recently approved near Lompoc could supply 285 gigawatt hours (GWh) a year -- about a tenth of our county’s current demand for electricity.  In Santa Barbara County, wind power potential is much, much greater. Professor Dan Kammen -- chairman of UC Berkeley’s Energy Resources Group – and his graduate students, in a study performed for CEC, found potential for nearly 3,800 GWh of wind at onshore sites in the county.  When adding the potential from offshore sites and small wind turbines, Kammen calculated a potential of 290,000 GWh. In other words, wind power in our region could theoretically produce over 100 times our current demand for electricity.

November 13, 2008, 2:32 pm

http://greeninc.blogs.nytimes.com/2008/11/13/texas-adjusts-its-grid-for-wind/

Texas Adjusts Its Grid for WindBy Kate Galbraith NYTimes Blogs“The major problem with wind as a power source is that it doesn’t blow all the time. To remedy that, Texas is spending $30 million a year to bolster its back-up power, in a change to the electricity grid that began on Nov. 1.”

Wind Power is Soft Energy

http://knowledgeproblem.com/2008/02/29/meanwhile_in_te/

Operators of the Texas power grid scrambled Tuesday night to keep the lights on after a sudden drop in wind

power threatened to cause rolling blackouts

• Wind can create havoc on grid – Texas has experienced near misses

• Wind Power is now rapidly expanding

GRID

Load Following Fuel Cell

Hydrogen Storage

Wind Power

Hydrogen Provides Hard Power Backup to Wind

Hydrogen & Wind Power

Even just 20% of new USA wind power backup (1,800 MW), requires 2,500,000 kg/day of H2

Potential Sources of Hydrogen

Source Advantages1. Electrolyzer Can be used to load level wind power

(effective use of excess power) H2 and oxygen available (at up to 200 psi )

2. Pipeline No storage needed Potentially low cost by-product H2

3. LP Gasifier Can be biomass fed

4. High Pressure Coal Gasification

Commercially demonstrated High pressure H2 easily stored Low cost fuel source

5. High Pressure Gasification with CO2 Sequestration

High pressure H2 easily stored Low cost fuel source Low CO2 emissions

6. DFC-H2®

Renewable Fuels

Distributed hydrogen generation Improves overall power generation efficiency Sub-megawatt DFC-H2® demonstration in progress

FCE Confidential and Proprietary

Co-Production of Renewable Hydrogen in California

SMART GRID

Load Following Fuel Cell

Hydrogen Storage

Base Load Fuel Cell

Co-Produced Hydrogen

Hydrogen Storage

Peak Power Generation using DFC-H2® + Low Temperature Fuel Cell

BioGas fuel (ADG) for Renewable Hydrogen

• Over 60+ units globally, 450+ million kWh produced

• Fuel Flexible – Natural Gas, Biogas, Propane

Engines

Direct FuelCell®

0.1 1 10 100 1000

10

30

50

70

EF

FIC

IEN

CY,

%(L

HV

)

Gas Turbines

Combined

Cycle

0.01

Microturbines

SYSTEM SIZE (MW)

PA/PEM FC

AverageU.S.Fossil FuelPlant = 33%

Coal/

Steam

DFC-H2/PEM Peaker

High Efficiency for Peak Power Generation

Co-product

Co-Production Capacity of DFC-H2 Power Plants

DFC300Ò DFC1500Ò DFC3000Ò

2,4001,200300Fuel Cell Cars, 0.5 kg/day

Refueling Capacity

4.02.00.5Heat, mmBtu/hr

1,000500125Hydrogen, kg/day

2,0001,000250Power, kW

4,0002,000500Peak Power (8 hrs/day), kw

Peaker Capacity

SMART GRID

Load Following Fuel Cell

Base Load Fuel Cell

Co-Produced Hydrogen

Hydrogen Storage

Wind Power

Electrolyzer

DFC-H2® Peaker compliments Smart Grid

Wind Power Integration Benefits

BioGas fuel (ADG) for Renewable Hydrogen

Biomass Required to Meet Liquid BioFuel Goal

0

200

400

600

800

1,000

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

% of Goal (15 billion gal/yr)

mm

lb

/day

Bio

mas

s

20% of biomass to biofuel

40% of biomass to biofuel

H2 Needs for backup.xls

Biomass Opportunity

Potential Hydrogen from Waste Biomass

0

5

10

15

20

25

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

% of Goal (15 billion gal/yr)

mm

kg

/day

Hyd

rog

en

20% of biomass to biofuel

40% of biomass to biofuel

Biomass Opportunity

Peaker H2 Demand

Renewable Energy Portfolio

Challenge

Biomass Challenges

Biomass Source of CO2 for high density energy crops

Waste biomass needs higher value-proposition

Cost of conversion to liquid biofuels is high

Integrated Biomass Liquid Fuel Production

Biomass Processing Gasification DFC-H2® UnitCO2, CH4 Power

High Level Heat

Low Level Heat

Hydrogen

Clean CO2 (Cathode exhaust, Low O2, Higher N2)

Optional other waste biomass

Low Level Heat

Biomass Growing

(such as Algae)

Liquid Biofuel

EHS System

Bio Hydrogen

Bio RefiningCrude Bio oil

Clean CO2 Increases Biomass Production

H2, CO, CO2, CH4

Processing Waste

Electrochemical Hydrogen Separator

Development

Technology Scale-up

~50% Reduction in Energy Consumption

Baseline

Advanced

2004 2005 2006 2007 2008 2009 2010

25 cm2 cell

300-cm2 cell

300-cm2

25-cell stack(CCEF Program)

1000-cm2

6-cell stack

1000-cm2

100-cell stack

1000cm2

EHS Stack

with tolerance to 5,000 ppm

CO

MO3240b50 cm2 Cell

600 cm2

3-Cell Stack

600 cm2

24-Cell Stack

1000cm2 EHS Stack with

tolerance to 10 ppm CO

2004 2005 2006 2007 2008 2009 2010

25 cm2 cell

300-cm2 cell

300-cm2

25-cell stack(CCEF Program)

1000-cm2

6-cell stack

1000-cm2

100-cell stack

1000cm2

EHS Stack

with tolerance to 5,000 ppm

CO

MO3240b50 cm2 Cell

600 cm2

3-Cell Stack

600 cm2

24-Cell Stack

1000cm2 EHS Stack with

tolerance to 10 ppm CO

FuelCell Energy Business Confidential Information

H2 Separation

Biomass

Wind

Solar

Conversion

Intermittent Power

Intermittent, Day Only Power

Liquid Fuels

Gaseous Fuels /H2 Mix

H2 Separation

H2 Storage

LTFC

Reliable, Load Following Power

Gaseous Fuel HTFC

Reliable, Base Load Power

Transportation Fuels

Load Following

Power

Electrolysis

HTFC = High Temperature Fuel CellLTFC = Low Temperature Fuel Cell

High Wind, Excess Power

~5-10%

~90-95%

DFC-H2®

Soft Power converted to Hard Power

Renewable Energy Source

Reliable, Load Following, Fully

Renewable Power

H2 Enables Use of Renewable Energy

NHA Members to Implement

Team Effort Needed to Move Forward

Thank you

Questions?

Fred C. JahnkeSenior Manager, Hydrogen Projects

fjahnke @ fce.com203-825-6108