Chevron Energy Solutions Installs Hydrogen Fuel Cell Cogeneration Plant at County Jail in Northern California

Energy Resource, August 10, 2006

ENERGY RESOURCE-10 August 2006-Chevron Energy Solutions Installs Hydrogen Fuel Cell Cogeneration Plant at County Jail in Northern California(C)2006 JeraOne - http://www.jeraone.com

Alameda County, Calif., officials today announced the completion of the state's first megawatt-class hydrogen fuel cell cogeneration plant at the county's Santa Rita Jail.

The plant is an alternative energy system that transforms hydrogen from natural gas into electricity and water without combustion and captures waste heat to improve efficiency.

The project, engineered and installed at the jail by Chevron Energy Solutions, a Chevron subsidiary, will provide half of the facility's annual power needs, save county taxpayers more than $260,000 a year, and benefit the environment, officials said.

"With the installation of this plant, Santa Rita Jail is now the 'greenest' county facility in the country," said Keith Carson, president of the Alameda County Board of Supervisors. "Alameda County has demonstrated the feasibility of combining alternative power technologies and energy efficiency measures in one facility to reduce costs and help the environment. It's an important milestone on the road to sustainability, and we hope this project will encourage other counties to consider installing fuel cell technology."

The quiet one-megawatt (MW) plant was manufactured by FuelCell Energy Inc. The power from the new unit, along with the jail's previously installed 1.2-MW solar power array and energy efficiency upgrades, will shrink Santa Rita's power purchases by as much as 80 percent during the peak-demand summer months, when California's electric utility system can face capacity constraints. The lower demand will eliminate more than 3,200 tons of greenhouse gas emissions annually, equivalent to planting more than 900 acres of trees.

The $6.1 million total project cost was supported by $2.4 million in grants and incentives: $1.4 million from Pacific Gas and Electric Company's self-generation incentive program, and $1 million from the U.S. Department of Defense Climate Change Fuel Cell Program. The remaining cost of $3.7 million -- $2.8 million of which was financed through a California Energy Commission Energy Partnership Program Loan -- is being funded entirely by the project's energy cost savings under a performance contract with Chevron Energy Solutions and FuelCell Energy.

"We're very pleased to provide Alameda County with a cost-effective solution that supports sustainable energy development," said Jim Davis, president of Chevron Energy Solutions. "This plant is a great example of how clean fuel cell technology can be successfully combined with heat recovery technology to maximize energy savings and minimize environmental impacts."

Chevron Energy Solutions, which develops energy efficiency and alternative power projects, has installed fuel cell plants for other institutions and businesses, including the U.S. Postal Service. FuelCell Energy currently services 45 fuel cell power plants globally and conducts research and development on next-generation fuel cell technology.

For more information about Alameda County, Chevron Energy Solutions and FuelCell Energy, visit www.acgov.org, www.chevronenergy.com, and www.fuelcellenergy.com.

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