FuelCell Energy to Provide Direct FuelCell Power Plant for Pepperidge Farm Bakery in Connecticut; Equipment Sale Through PPL EnergyPlus Will Be Their Seventh DFC300A Customer

Business Wire, March 10, 2005

DANBURY, Conn. -- 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.