Hybrid fuel cell technology recovers energy from pipeline operations, increases electrical efficiency, reduces harmful greenhouse gas emissions

DANBURY, CONNECTICUT - FuelCell Energy, Inc., a leading manufacturer of efficient electric power plants for commercial and industrial customers, and Enbridge Inc., a leader in energy transportation and distribution worldwide, today announced initiating production of the first multi-megawatt hybrid product, generating ultra-clean electricity while recovering energy normally lost during natural gas pipeline operations.

The new product, the Direct FuelCell-Energy Recovery Generation system, combines a 1.2 megawatt (MW) Direct FuelCell power plant with a 1 MW unfired gas expansion turbine. Operating at natural gas pipeline letdown stations, the system generates 2.2 megawatts (MW) of ultra-clean electricity.

Engineering of the DFC-ERG system has been underway for more than a year. Enbridge has ordered FuelCell EnergyÂ’s new up-rated 1.2 megawatt DFC power plant to ensure product integration is complete in time to meet the needs in emerging markets like Ontario, Canada, and Connecticut, as well as other U.S. states.

To transport natural gas across the continent, natural gas pipelines operate at high pressures and considerable energy must be injected to achieve the pressures required. This high pressure must be reduced when the gas enters lower pressure systems that deliver gas to homes and businesses. Currently, there is no commercial use made of the energy that is lost at that stage. Additionally, when pressure is reduced, the gas cools. To ensure reliable pipeline operations, the cooling must be offset -- by burning some gas in boilers, reheating the supply to an acceptable temperature.

With the new DFC-ERG system, high-pressure gas passes through a turbine, capturing some of the energy that was otherwise lost, and turns it into usable electricity. The integrated fuel cell also electrochemically converts some of the gas into low-impact, environmentally friendly electricity. Finally, heat normally generated by the fuel cell warms the gas to its proper distribution temperature -- thus eliminating the boiler (and its emissions). The combined system can achieve electrical efficiencies over 60 percent, with low noise and virtually zero smog emissions.

“This first DFC-ERG will illustrate the benefits of DFC power plants in delivering unparalleled energy efficiency, which is extremely important in this climate of rising fuel prices,” said R. Daniel Brdar, FuelCell Energy’s President and Chief Executive Officer. “This system addresses a significant need, and opens new market opportunities for the company.”

Availability of the hybrid power plant is expected to be in the third calendar quarter of 2007. EnbridgeÂ’s research has identified 40-60 MW of opportunities for the DFC-ERG system in just one of its operating areas. The North American market represents another 200-300 MW, consisting of the half dozen U.S. states currently seeking to add fuel cellsÂ’ environmental attributes to their Renewable Portfolio Standards (RPS). These jurisdictions recognize that a portfolio of low-impact energy supplies, renewables and near-zero emission fossil fuel technologies can provide immediate and long-term benefits.

Hybrid fuel cell power plants are uniquely positioned to generate electricity with low environmental impact and deliver it to wholesale grids like large wind farms. The state of Connecticut already offers a ready made contract path with its Project 100, and the province of Ontario is soon to release its Clean-Energy Standard Offer Program. Both initiatives are geared toward embedding ultra-clean generation sources to deliver electricity directly to the grid.

The DFC-ERG is particularly well-suited to these programs since the pipeline pressure reducing stations are inherently close to, or embedded within, urban centers - where the demand for clean electricity is the greatest.

“This is a prime example of how high-efficiency, near-zero emission technologies can play a meaningful role in meeting clean air and climate change objectives,” said Jim Schultz, Enbridge Senior Vice President, New Ventures. “Enbridge is a leader in the North American energy market, and we are excited to work with FuelCell Energy and our other vendor partners to commercialize this new innovative fuel cell plant, and to ensure gas utilities are part of the environmental solution for our society.”

The first production unit includes the participation of other vendor partners including Cryostar SAS, a global leader in radial in-flow turbines and low-carbon energy solutions, and SatCon Power Systems Canada, Ltd., a global leader of multi-megawatt, utility grade, power inverter solutions. Cryostar, a business unit of the BOC Group, recently was acquired by the Linde Group, a world leading industrial gases and engineering company with a presence in 70 countries and gas and engineering sales of approximately 12 billion Euros.