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News ReleaseAir Products and FuelCell Energy Begin Construction of High Efficiency Hydrogen Energy Station Demonstration for Combined Hydrogen, Electricity and Heat Generation

System Designed to Address Industrial and Transportation Applications

March 20, 2007 Lehigh Valley, Pa.

Air Products (NYSE: APD), a global leader in hydrogen fueling station technology and the world’s largest producer of hydrogen, and FuelCell Energy, Inc. (NasdaqNM: FCEL), a leading manufacturer of efficient, ultra-clean power plants using renewable and domestic fuels for commercial and industrial customers,today announced that construction has commenced on an advanced hydrogen energy demonstration station. The station, funded in part by the United States Department of Energy (DOE), is to demonstrate a tri-generating green energy system capable of providing low-cost hydrogen, electric power and heat from one integrated unit.

The new system will combine FuelCell Energy’s Direct FuelCell® (DFC®) power plants with Air Products’ advanced gas separation technologies. The DFC system produces reliable ultra-clean electric power and heat for cogeneration, as well as hydrogen for industrial applications and fuel cell vehicles. The system is designed to produce more than 250 kilowatts (kW) of green power and over 135 kilograms (about 300 pounds) of hydrogen per day. The system could provide hydrogen for smaller industrial users who routinely purchase liquid or gaseous hydrogen that currently must be delivered by truck. The DFC system could also be equipped to provide daily hydrogen fueling for approximately 35 fuel cell vehicles.

The tri-generation system (hydrogen, electricity and heat) is designed to operate on renewable fuel sources, such as anaerobic digester gas from industrial or municipal wastewater treatment facilities, as well as readily available fuels, including natural gas and propane. The overall cost of on-site generation of hydrogen via this process has the potential to be significantly lower than other currently available production options, and thus could provide hydrogen and energy at decreased costs.

“This energy station is a tremendous opportunity to be able to offer hydrogen, electricity and heat in one highly efficient system,” said Ed Kiczek, senior business development manager–Hydrogen Energy Systems at Air Products. “This technological innovation could also help develop the infrastructure needed to support hydrogen-fueled cars of the future.”

The companies completed the design phase of the DOE project in 2006. System construction is expected to be complete in 2007. The unit will be tested at FuelCell Energy and shipped to Air Products for subsequent field demonstrations. Several locations are being evaluated for the field test, which is scheduled to occur before the end of 2008.

Air Products is the lead contractor and system integrator for this DOE demonstration project titled, “Validation of an Integrated System for a Hydrogen Fueled Power Park.” FuelCell Energy, a subcontractor on the demonstration project, will be responsible for building the customized power plant component and providing the hydrogen-containing stream for separation. Air Products will construct the equipment needed to separate hydrogen and compress it to the desired pressure levels. The system addresses DOE hydrogen purity requirements for fuel cell vehicles. Globally, Air Products has placed over 65 fueling stations on stream in 12 countries, most recently for mass transit fueling in Beijing, China for buses to be used to shuttle athletes and visitors for the 2008 Olympic Games.

“The HES system will not only help provide the infrastructure for hydrogen re-fueling stations needed for fuel cell automobiles as they advance from demonstration stage to commercialization, but will also meet the current market demand for lower cost hydrogen, thus increasing the value proposition of our DFC products,” said Chris Bentley, FuelCell Energy’s executive vice president of Government Operations and Strategic Manufacturing Development.

Excluding the demand spike that may result from commercializing hydrogen-fueled cars, the current market for hydrogen is significant with over 50 million tons of hydrogen produced annually worldwide, according to the National Hydrogen Association.

About Air Products

Air Products (NYSE:APD) serves customers in industrial, energy, technology and healthcare markets worldwide with a unique portfolio of atmospheric gases, process and specialty gases, performance materials, and equipment and services. Founded in 1940, Air Products has built leading positions in key growth markets such as semiconductor materials, refinery hydrogen, home healthcare services, natural gas liquefaction, and advanced coatings and adhesives. The company is recognized for its innovative culture, operational excellence and commitment to safety and the environment and is listed in the Dow Jones Sustainability and FTSE4Good Indices. The company has annual revenues of $9 billion, operations in over 40 countries, and over 20,000 employees around the globe. For more information, visit  

About FuelCell Energy

FuelCell Energy develops and markets ultra-clean power plants that generate electricity with up to twice the efficiency of conventional fossil fuel plants with virtually no air pollution and reduced greenhouse gas emissions using a variety of fuels including renewable biogas and domestically-available fuels like natural gas. The company’s fuel cell products, ranging in size from 300 kW to 2.4 MW, are scalable for distributed generation applications 10 MW and larger while producing baseload electricity giving commercial, industrial and utility customers improved power generation economics and reliability with lower emissions. Headquartered in Danbury, Conn., FuelCell Energy has over 60 power plant installations worldwide that have generated more than 150 million kilowatt hours. For more information on the company please go to

Note from Air Products: This release may contain forward-looking statements. Actual results could vary materially, due to changes in current expectations.

Note from FuelCell Energy: 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.

FuelCell Energy Contact 
Lisa Lettieri
Tel: (203) 830-7494

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