Company Overview

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Safe Harbor Statement

This presentation contains forward-looking statements, including statements regarding the company's plans and expectations regarding the development and commercialization of fuel cell technology. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. The forward-looking statements speak only as of the date of this presentation. The company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the company's expectations or any change in events, conditions or circumstances on which any such statements are based.

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Overview

•66% of the world’s electricity was from fossil fuels in 20052

•Wind and solar are providing approximately 2% of total electricity due to intermittent nature²

•Environmental needs driving ultra-clean power generation solutions

•Ability to reduce energy cost and CO2 dependent on increasing energy efficiency…

1. Energy Information Administration, “International Energy Outlook 2007, p. 61.2. International Energy Agency, Key World Energy Statistics 2007, p. 24.

Global demand for electric power expected to grow from

16.4 to 27.1 trillion kWh by 2025¹

U.S. 2006 Data from http://www.eia.doe.gov/cneaf/electricity/epa/epat1p1.html

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Global Opportunity

•U.S., South Korea, and Europe regard clean energy technology development and deployment as a key economic driver

•South Korea setting aside $85 billion for new RES program and U.S. allocated nearly $10 billion from ARRA for clean energy projects

•Wind and solar are good intermittent solutions but fuel cell power plants provide ultra-clean, highly-efficient, baseload power

•Nuclear and coal-burning central generation are difficult to site and costly

•Large-scale projects difficult to finance

•Distributed clean energy generation answers the need for efficient, economical clean power when and where needed

•DFC power plants are designed to efficiently use fuels to reduce carbon and other emissions

The world is undergoing a fundamental shift in how it develops and deploys new power generation

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Overview

• Higher electrical efficiency than competing technologies

• Near-zero NOX, SOX and low CO2 emissions

• Reliable, secure, 24/7 uninterrupted power

• Competitive economics

• Cleaner & quieter operation

• Fuel flexibility

• Connects to existing electric and fuel infrastructure

• More control over power costs, emissions, and reliability San Diego Sheraton, CA

FCE is uniquely positioned to capture the commercial, industrial and utilities clean power generation market

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High Electrical Efficiency is the Key to Customer Value

In power generation all fuel ends up as electricity or heat

Fuel

12 – 16 cents/kWh

0.5 – 2 cents/kWh

Electricity

Heat

Electricity is worth 6 to 30 times as much as heat

High Electrical EfficiencyHigh Electrical Efficiency

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DFC power plants offer the highest efficiency of any distributed generation technology

High Electrical Efficiency

Fu

el t

o E

lect

ric

al E

ffic

ien

cy 60%

40%

20%

30%

50%

10%

Micro-turbines25 – 30%

Small Gas Turbines25 –35%

Natural Gas Engines30 – 42%

DFC-ERGDFC/Turbine

58 – 65%Direct

FuelCell (DFC)47%

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Grid Support, RPS10 MW +

1.4 MW

300 kW

Typical Applications

Average-SizedGrocery Stores,300-Bed Hotels

300-Bed Hospitals,Manufacturing,

Universities

1000-Bed Hotels, Convention Centers,

Wastewater Treatment, Food/Beverage

2.8 MW

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Competitive Advantages

•Distributed generation puts power where needed

•Increases power reliability

•Near-zero emissions allow siting in polluted urban areas

•Reduces need for central generation plants

•Relieves grid congestion and need for new transmission lines

•Distributed generation enables smart grid

•Balances the grid with 24/7 power

•Meets need for low carbon technology

•Smaller projects enable faster execution

Fuel cell power plants enable broad distributed generation

600 kW at M&L Commodities

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Case Study

•Challenge:

–Produce clean power from onion processing byproducts

•Solution:

–600 kW of fuel cells provide 24/7 power and high efficiency

–Uses anaerobic digester gas from onion juice

–Fuel cell waste heat used in anaerobic digester process

•Results:

–Provides 35-45% of Gills Onions’ electricity

Gills Onions wanted renewable power from its own operations

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Case Study

Sharp – one of the world’s largest solar panel makers –

needed 24/7 power for its “Super Green Factory”

•Challenge:

– Sharp wanted 24/7 power for its new “Super Green” flat screen TV factory

•Solution:

– 1 MW of fuel cells provide near-zero emissions and high efficiency

– Waste heat fed to absorption chiller provides air conditioning

•Results:

– Largest fuel cell installation in Japan

– Installation provides annual energy savings

– Saves ~3,000 tons of CO2

– Called Sharp’s “Crown Jewel” plant in NY Times ad

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Case Study

•Challenge:

– Find clean energy solution for Korea where wind and solar are not ideal

•Solution:

– DFC fuel cells provide 24/7 baseload power with near-zero emissions

– Electricity fed to the grid

– Byproduct heat can provide building heat and air conditioning

•Results:

– 23 MW DFC power plants installed

– All grid-connected

– Providing clean electricity, heat and air conditioning to nearby buildings

– Capable of up to 90% efficiency

South Korea initiated Green New Deal

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BuildMulti-Megawatt and RPS Markets

Path to Profitability

Strategy

Leadership Key Geographies

Product Cost Reductions

BuildOn-site Markets

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Markets•97 MW installed/backlog

– Japan/Korea: 72 MW – California/West Coast: 17 MW – Northeast/Canada: 5 MW– Europe: 2 MW

•Targeted applications– Grid Support: 69 MW– Renewable/Wastewater: 9 MW– Manufacturing: 7 MW – Hotels: 3 MW – University & Hospitals: 2 MW – Government: 5 MW– DFC-ERG: 2 MW

Market Leadership

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MW-Class: Asia

•Asia adopting distributed generation

•S. Korea declared fuel cells a key economic driver

•POSCO Power ordered over 68 MW

•Latest 30 MW order worth $58 million

•New licensing agreement permits POSCO to assemble fuel modules from our components

•POSCO paid $10 million licensing fee, 4.1% royalty

•Korean RES pending

– 4.3% by 2015 -- 2,800 MW

– 11% by 2030 -- 7,150 MW

POSCO BOP Manufacturing Plant

World’s 1st DFC3000 Installation in Korea

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MW-Class: California

•California is a leader in clean energy deployment

•55% of electricity generation in California is from natural gas

•Large installed base

•Largest deployment of biogas fuel cells in the world

•Coal and nuclear central generation not welcome

•Distributed generation deployment favored

•SGIP extended to 2015–$200 million currently available

•Feed-in-tariffs could encourage new clean energy generation 1 MW at California State University,

Northridge

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MW-Class: Connecticut

•Connecticut has RPS requiring 20% from clean generation by 2020

•Fuel cells on natural gas meet RPS

•Total 43.5 MW of awards

– 18.8 MW DFC-ERG

– 14.3 MW multi-unit DFC3000 with organic rankine cycle

– 7.2 MW multi-MW hospital projects

– 3.2 MW DFC/Turbine

•Working multiple paths to finance

•Projects should be eligible for ITC Grants and DOE loan guarantee program

1.2 MW DFC1500 at Pepperidge Farm Bakery in Bloomfield, CT

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Wastewater Market

•Wastewater treatment facilities and food/beverage processors are growing source of renewable biogas

•Burning biogas in turbines and engines produces pollution

•Fuel cells produce ultra-clean electricity with biogas more efficiently than any other distributed generation solution their size

•Byproduct heat used in treatment process increasing system efficiency up to 90%

•~40% of FuelCell Energy’s California installations and backlog are at wastewater facilities 1 MW DFC1500 at a wastewater

treatment facility in southern CA

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MW-Class: DFC-ERG

•DFC-ERG designed for pipeline letdown operations

– Byproduct heat warms gas to prevent freezing

– Energy from pressure letdown fed to turbine

– Excess electricity sold to the grid

•Result is ~60% electrical efficiency

• Improved economics and lower carbon emissions

•First site commissioned in Toronto

•4 sites pending under Connecticut RPS program

•Market estimated at 250-350 MW in Toronto, California and the Northeast U.S.

•Global opportunity

2.2 MW DFC-ERG in Toronto

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Our product costs are declining while grid power costs are increasing

Cost of Electricity

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1996 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Po

we

rpla

nt

Co

st,

$/k

W

0

5

10

15

20

25

30

35

40

45

Po

we

r C

os

t, c

en

ts/k

Wh

DFC Product Cost, % of Original

Unsubsidized DFC Power Cost w $8/MMBtu fuel

Unsubsidized DFC Power Cost with ADG fuel

Grid Power Costs (CT, commercial rate)

Solar PV 30 to 40 cents/kWh

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DFC3000 Cost Savings

Gross margin profitable MW-class units began production in July 2009

Captured Cost Reduction from 2003-2006

Technology Uprate20%

Value Engineering

54%

Supply Chain Management

13%

Service Process Improvement

4%

Manufacturing Process

Improvement9%

Future Cost Reductions to Less Than $2000/kW

Value Engineering & Mfg. Process Improvement

21%

Power Uprate29%

Volume Related Manufacturing Improvement

14%Volume Related

Sourcing14%

Global Sourcing22%

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Revenues

0

20,000

40,000

60,000

80,000

100,000

120,000

Th

ou

san

ds

2006 2007 2008 2009

Total Sales and Revenues(fiscal year October 31)

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Backlog

0

20,000

40,000

60,000

80,000

100,000

120,000

Th

ou

san

ds

2006 2007 2008 2009

Total Backlog(as of October 31)

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Production Capabilities

• Production and delivery capabilities meet current demand

• State-of-the-art manufacturing in Torrington, CT

• 70 MW capacity

• Production rate of 30 MW/year

• Strong supply chain in place

• Expansion plan to achieve 150 MW capacity

Torrington, CT

Danbury, CT

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Summary

• Product performance expanding markets

• Customers/applications providing repeatable order flow in Asia, California, Connecticut

• RPS and South Korean markets creating multi-MW volume

• Established manufacturing capability to meet current and future demand

• Recent $24 million raise and $25 million POSCO Power investment provide strong balance sheet

• Cost reduction and volume on path to profitability

Pohang, Korea