Award to Demonstrate a 60 Kilowatt Solid Oxide Fuel Cell Module

DANBURY, Conn., Oct. 3, 2012 -- FuelCell Energy, Inc.

(Nasdaq:FCEL) a global leader in the design, manufacture and service of
ultra-clean, efficient and reliable fuel cell power plants, today announced
a $6.0 million cost share award from the U.S. Department of Energy (DOE) to
continue existing research and development under phase III of the Solid
State Energy Conversion Alliance (SECA) coal-based systems program. The SECA
program is a collaboration between the Federal Government, private industry,
and academia to develop megawatt-class solid oxide fuel cell (SOFC) power
plants to efficiently and cleanly generate electricity from coal syngas.
High efficiency power generation from coal syngas advances the nation's
energy security while reducing greenhouse gas emissions. As the program
progresses to long term operation with coal syngas, near term applications
using natural gas in combined heat and power applications is also a focus.
The term of the award is 12 months and under the SECA program's cost share
parameters, the DOE will fund 70 percent of the total award amount or $4.2
million.

The objective for this award is to further enhance the performance and
endurance of the SOFC stack through continued cell materials research and
testing of a 60 kilowatt (kW) SOFC power plant connected to the electric
grid at FuelCell Energy's Danbury, Connecticut facility. The results of
these tests will be utilized in the design of a scalable 60 kW SOFC power
plant with extended capabilities for combined heat and power (CHP)
applications. The scalable design is the foundation for the larger
multi-megawatt SOFC power plants. The power plant utilizes the SOFC fuel
cell stack blocks manufactured by Versa Power Systems, Inc.
Both the module which houses the stack blocks as well as the balance of
plant for processing fuel, delivering air and producing heat and power are
designed by FuelCell Energy. The SOFC module is fuel flexible, capable of
operating on a variety of fuels including coal syngas, natural gas,
renewable biogas or directed biogas. The continuation of the SECA project
will provide the basis for the larger stationary power plants which will
take advantage of the fuel flexibility including coal.

"We are making excellent progress towards commercial applications with
leading edge solid oxide fuel cell technology for stationary applications,"
said Tony Leo, Vice President Application Engineering & Advanced Technology
Development, FuelCell Energy, Inc. "We believe this technology can provide
an industry leading electrical efficiency of approximately 60 percent and
still provide usable heat for combined heat and power applications,
resulting in total estimated thermal efficiency between 80 and 85 percent."

The DOE's SECA program is currently focused on development of technologies
suitable for large-scale coal based applications such as Integrated
Gasification Fuel Cell (IGFC) power plants. The USA has approximately one
quarter of the world's recoverable coal deposits, the largest of any nation.
Almost half of the power generated in the USA is from coal and this coal
generated power contributes over one quarter of the nation's total
greenhouse gas emissions. Fuel cells operating on coal syngas can generate
clean power with virtually zero pollutants and significant reductions in
greenhouse gas emissions.

Versa Power Systems, Inc. is a leading developer of environmentally friendly
solid oxide fuel cells, a clean-tech source of power to generate electricity
for a range of applications. Headquartered in Littleton, Colorado, the
Company has built systems integral to research projects conducted by
partners including Fortune 500 industrial manufacturers, government agencies
and associations focused on energy research. FuelCell Energy, Inc. owns
approximately 39 percent of Versa Power Systems, Inc.

About FuelCell Energy

Direct FuelCell(R) power plants are generating ultra-clean, efficient and
reliable power at more than 50 locations worldwide. With approximately 180
megawatts of power generation capacity installed or in backlog, FuelCell
Energy is a global leader in providing ultra-clean baseload distributed
generation to utilities, industrial operations, universities, municipal
water treatment facilities, government installations and other customers
around the world. The Company's power plants have generated more than one
billion kilowatt hours of ultra-clean power using a variety of fuels
including renewable biogas from wastewater treatment and food processing, as
well as clean natural gas. For more information please visit our website at
www.fuelcellenergy.com