CALGARY, ALBERTA and DANBURY, CONNECTICUT--Enbridge Inc. (NYSE,
TSX: ENB), a leader in energy transportation and distribution in
North America and internationally, and FuelCell Energy, Inc.
(NasdaqNM: FCEL), a leading manufacturer of stationary fuel cell
power plants for distributed generation, announced today that
they have finalized an agreement whereby Enbridge will be a
distributor of FuelCell Energy's Direct FuelCell(R) (DFC(R))
products in Canada.
The agreement with FuelCell Energy introduces reliable, highly
efficient, ultra-low emission base load DFC power plants
(DFC300A, DFC1500 and DFC3000 with introductory ratings of 250
kilowatts, 1 megawatt and 2 megawatts, respectively) to
Enbridge's portfolio of energy services in Canada. As part of the
agreement, Enbridge has received warrants to purchase 500,000
shares of FuelCell Energy common stock. The agreement calls for
the warrants to be exercisable on a graduated scale based on
order flow generated by Enbridge. The full quantity of warrants
will vest with order commitments for 20 megawatts of DFC power
plants. The exercise prices of the warrants range from $14.65 to
$19.04 per share and the warrants will expire in November 2006.
"We are very pleased to enter into this alliance with FuelCell
Energy," said Stephen J. J. Letwin, Enbridge Inc. Group Vice
President, Gas Strategy & Corporate Development. "The alliance
enables Enbridge to participate in a second fuel cell technology
- molten carbonate - which has excellent near-term commercial
potential. In addition, we look forward to continued development
of the solid oxide fuel cell (SOFC) technology that has
longer-term potential. Both technologies are consistent with our
strategy to invest in emerging and renewable energy
technologies."
"This agreement with Enbridge continues our strategy of
partnering with leading companies and suppliers to deliver our
products worldwide," said Jerry D. Leitman, president and CEO of
FuelCell Energy. "Enbridge immediately becomes a leader in the
Canadian commercial market for stationary fuel cell power plants,
while FuelCell Energy gains the experience and marketing
capabilities of one of the world's top energy distribution
companies."
About Enbridge Inc.
Enbridge Inc. is a leader in energy transportation and
distribution in North America and internationally. As a
transporter of energy, Enbridge operates, in Canada and the U.S.,
the world's longest crude oil and liquids transportation system.
The company also has international operations and a growing
involvement in the natural gas transmission and midstream
businesses. As a distributor of energy, Enbridge owns and
operates Canada's largest natural gas distribution company and
provides distribution services in Ontario, Quebec, New Brunswick
and New York State to 1.6 million customers. Enbridge employs
approximately 4,000 people, primarily in Canada, the U.S. and
South America. Information about Enbridge is available on the
Company's web site at www.enbridge.com.
About Direct FuelCells
Direct FuelCells efficiently generate clean electricity at
distributed locations near customer locations, including
hospitals, schools, universities, hotels and other commercial and
industrial facilities, as well as in grid-support applications
for utility customers. Essentially, Direct FuelCells are like
large, continuously operating batteries that generate electricity
as long as fuel, such as natural gas, is supplied. Since the fuel
is not burned, there is no pollution commonly associated with the
combustion of fossil fuels. Because hydrogen is generated
directly within the fuel cell module from readily available fuels
such as natural gas and wastewater treatment gas, DFC power
plants are ready today and do not require the creation of a
hydrogen infrastructure. This high-efficiency technology
generates more electric power from less fuel and with less carbon
dioxide emissions than traditional combustion methods.
About FuelCell Energy, Inc.
FuelCell Energy, Inc., based in Danbury, Connecticut, is a world
leader in the development and manufacture of high temperature
hydrogen fuel cells for clean electric power generation,
currently offering DFC power plant products ranging in size from
250 kilowatts to 2 megawatts for applications up to 50 megawatts.
Its wholly owned subsidiary, Global Thermoelectric Inc., is a
leader in the development of solid oxide fuel cell (SOFC)
products and the world's largest manufacturer and distributor of
thermoelectric stationary power generators for use in remote
locations.
The Company has developed commercial distribution alliances for
its carbonate Direct FuelCell technology with MTU CFC Solutions
GmbH, a company of DaimlerChrysler AG, in Europe; Marubeni
Corporation in Asia; Caterpillar, PPL Energy Plus, Chevron Energy
Solutions and Alliance Power in the U.S; and Enbridge in Canada.
FuelCell Energy is developing 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. More information is available at
This news release contains forward-looking statements, including
statements regarding the Company's plans and expectations
regarding the development and commercialization of its fuel cell
technology. All forward-looking statements are subject to risks
and uncertainties that could cause actual results to differ
materially from those projected. Factors that could cause such a
difference include, without limitation, the risk that commercial
field trials of the Company's products will not occur when
anticipated, general risks associated with product development,
manufacturing, changes in the utility regulatory environment,
potential volatility of energy prices, rapid technological
change, and competition, as well as other risks set forth in the
Company's filings with the Securities and Exchange Commission.
The forward-looking statements contained herein speak only as of
the date of this press release. The Company expressly disclaims
any obligation or undertaking to release publicly any updates or
revisions to any such statement to reflect any change in the
Company's expectations or any change in events, conditions or
circumstances on which any such statement is based.
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