FuelCell Energy, Inc. (NasdaqNM:FCEL), a manufacturer of efficient electric power generation plants for commercial, industrial and government customers, announced that one of its 250- kilowatt Direct FuelCell (DFC) power plants, sold by its Asian distributor Marubeni Corporation (TSE:8002) to NTT Facilities, will be incorporated into an electric supply system providing reliable base load power to a university, a welfare institution, a high school and a water purification plant in Sendai City, in northeastern Japan.
Sendai City’s DFC power plant is part of a 940 kilowatt (kW) high quality electric power system consisting of the fuel cell unit, a solar power system and a gas engine co-generation system. The high efficiency DFC power plants will be used by the end users to provide firm base load power and the surplus heat from the fuel cell unit will be used for domestic hot water.
NTT, the parent company of NTT Facilities, is the top market share holder among the telecommunications industry in Japan and in 2005 was ranked as the 18th largest company in the world by Fortune Magazine. NTT Facilities will be responsible for comprehensive engineering services including the procurement of equipment, project development, project management, installation of the equipment including the fuel cell power plant and the long term operation of the micro-grid. With this installation, NTT Facilities is evaluating the performance of DFC products for future installations.
“Direct FuelCells feature the highest electrical efficiency in their class and their ultra-clean profile is an ideal solution for countries like Japan who need to comply with the Kyoto Protocol emission targets,” said Bruce Ludemann, Senior Vice President for Sales and Marketing, FuelCell Energy. “This particular installation is a great opportunity for us to work with one of Japan’s most influential companies and demonstrate the feasibility of tying DFC products–providing high quality base load power that is also environmentally friendly for the citizens of Sendai City.”
“Japanese companies like NTT Facilities that are using increasing amounts of information technology equipment to support their productivity are recognizing that high efficiency DFC power plants generate 24/7 base load power, enabling them to improve their energy supply,” said Kenji Natori General Manager of Marubeni’s New Technology & Renewable Energy Department. “The fuel cell is part of a distributed power supply system that utilitizes various new energy products to enhance the reliability and quality of electricity for customers’ needs with low cost.”
Japan represents a significant market where FuelCell Energy’s DFC products can provide commercial and industrial customers with reliable and cost-effective base load power. DFC products address two significant energy issues in Japan: coping with high energy costs and meeting the country’s commitments to reduce emissions of the major greenhouse gas, carbon dioxide. Compared to the average U.S. fossil fueled power plant, high efficiency DFC products use less fuel per kilowatt hour of electricity to trim operating costs, while significantly reducing carbon dioxide. In addition, because DFC units generate heat and power electrochemically — without combustion — emissions of harmful pollutants such as nitrogen oxides, sulfur oxides and particulate matter are significantly diminished.
FuelCell Energy recently announced that Marubeni had committed to order an additional six Megawatts of DFC power plants in exchange for rights as the exclusive provider of the company’s products in the Japanese Market.
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