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    Renewable Energy

    FuelCell Energy to build combined heat and power fuel-cell solution for UC Irvine Medical Center

    06/20/2014

    FuelCell Energy, al leader in the design, manufacture, operation
    and service of fuel cell power plants, announced
    the development of a project to install a 1.4 megawatt (MW)
    fuel cell power plant to provide both electricity and
    usable high quality heat to the University of California, Irvine
    Medical Center.

    The power plant will generate about 30 percent of the
    facility power needs, while the heat produced will be used in a direct
    exhaust absorption chiller to produce 200 tons of cooling for an office
    building and associated institutional requirements. The medical center,
    a campus with a 412-bed acute care facility, will enjoy the benefits of
    clean, quiet and affordable on-site power while avoiding a capital
    investment by purchasing the power and heat under a multi-year power
    purchase agreement. FuelCell Energy will install, operate and maintain
    the plant.

    "The University of California is a national leader in sustainability
    and effective actions to reduce greenhouse gases as we work towards
    carbon neutrality by the year 2025," said Morris Frieling, chief
    financial officer, UC Irvine Medical Center. "This fuel cell
    installation fits perfectly with our ambitious goals of adopting
    alternative energy sources, embracing energy efficiency, and supporting
    California's carbon Cap and Trade Program, all while enhancing our
    power reliability with on-site power generation."

    "Stationary fuel cell power plants are a solution whose time has come
    for addressing the myriad of power generation challenges facing our
    society," said Professor Scott Samuelsen, Director, National Fuel Cell
    Research Center at UCI. "The value is clear, ranging from the avoidance
    of costly and inefficient power transmission, to enhanced power
    reliability from on-site generation, to the attractive emission profile
    of fuel cells with their low carbon footprint and virtual absence of
    criteria pollutants."

    The power plant will be configured for combined cooling, heating and
    power (CCHP) so that the same unit of fuel generates both ultra-clean
    power and usable high quality heat that will be used both for heating
    water and converting a portion of the heat into cooling for air
    conditioning. By reducing usage of electricity based chillers for space
    cooling, the medical center will benefit financially through avoided
    electricity costs and support the environment by avoiding the
    pollutants and greenhouse gases emitted by centralized conventional
    power plants.

    The heat will be turned into cooling via a direct exhaust
    absorption chiller. This CCHP Direct FuelCell(R) (DFC(R)) power plant
    installation is exempt from air permitting under the California South
    Coast Air Quality Management District Rule 219, due to the low carbon
    and virtual absence of criteria pollutants, accelerating the project
    development process.

    "This project is a private/public partnership demonstrating how private
    capital can support public goals with clean and affordable power for a
    public institution," said Chip Bottone, President and Chief Executive
    Officer, FuelCell Energy, Inc. "Due to the highly efficient power
    generation process, stationary fuel cell power plants are virtually
    absent of the pollutants that cause smog and acid rain and are exempt
    from the State of California Cap-and-Trade Program so UC Irvine Medical
    Center will see its Compliance Obligation reduced, avoiding carbon tax
    payments and increasing savings."

    FuelCell Energy is developing this project and expects to close on
    permanent financing on or before the commercial operation date of the
    power plant. The medical center has entered into a multi-year power
    purchase agreement to buy the electricity produced by the fuel cell
    power plant, while the cooling benefits are provided as an additional
    benefit to the medical center.

    Since the fuel cell power plant generates power without combustion, its
    exhaust is virtually pollution-free. Compared to the electric grid, the
    fuel cell installation will annually avoid the emission of 28 tons of
    smog-producing nitrogen oxide (NOx), 64 tons of sulfur dioxide (SOx)
    that causes acid rain, 3,000 pounds of particulate matter (PM10) that
    can aggravate asthma, and more than 7,000 tons of CO2, a greenhouse
    gas, which is equivalent to removing more than 1,000 cars from the
    road.

    The National Fuel Cell Research Center analyzed the attributes and
    value streams of stationary fuel cells, monetizing their value compared
    to other distributed generation power technologies in relation to both
    criteria pollutants and greenhouse gases. The principal conclusions of
    the analysis is that fuel cells provide significant value (1) through
    cogeneration, digester gas use, avoided central station generation, and
    associated avoided emissions, and (2) to significantly reduce
    greenhouse gas emissions.

    FuelCell Energy

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