FuelCell Energy, Inc., (Nasdaq: FCEL) and its distribution partner, PPL EnergyPlus, a subsidiary of PPL Corporation (NYSE: PPL), announced today they are providing a 250-kilowatt Direct FuelCell (DFC) power plant for installation at the Sheraton New York Hotel & Towers owned by Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT), one of the largest hotel operators in the world. The fuel cell power plant is expected to provide about 10 percent of the power and domestic hot water needs of the hotel. Delivery for the hotel unit is scheduled for this summer.
"The clean and quiet operating characteristics of the power plant make it ideal for a congested urban setting like Manhattan, and the steady need for power at a hotel means that the fuel cell will be providing electricity and heat energy around the clock, said Herbert Nock, SVP, Marketing and Sales of FuelCell.
The New York State Energy Research and Development Authority (NYSERDA) is contributing $920,000 for the project, which was a finalist of NYSERDA's combined heat and power program. The winners were selected after a rigorous evaluation to determine the likelihood of success as well as the economical and environmental benefits associated with the proposed projects.
This project will benefit from the recently enacted stand-by exemption provision in New York State. Effective February 1, 2004, Consolidated Edison of New York, Inc; Orange & Rockland Utilities, Inc.; New York State Electric and Gas Corporation; and Rochester Gas and Electric Corporation exempted DFC power plants from stand-by charges if the installation represents less than 15 percent of the customer's maximum potential demand.
The hotel industry is an excellent commercial application of FuelCell Energy's DFC power plants with their stable base load heat and power demand profile. PPL owns and operates DFC300A power plants at two other Starwood Resorts, the Sheraton Edison and the Sheraton Parsippany Hotels in New Jersey. In a 2000 study by the Energy Information Administration and Department of Energy, the estimated market potential for combined heat and power applications for hotels and motels in the United States is approximately 6,500 megawatts.
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