Fuel Cells Earn Prominent Position Within South Korean Renewable Portfolio Standard Pricing Mechanism

DANBURY, Conn., Jan. 13, 2011 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc. (Nasdaq:FCEL) a leading manufacturer of ultra-clean highly efficient power plants using renewable and other fuels for commercial, industrial, government, and utility customers, announced today that the South Korean Ministry of Knowledge Economy has issued the final ruling providing the funding mechanism for new & renewable (NRE) power sources under the Renewable Portfolio Standard (RPS) previously announced in March, 2010. On December 29, 2010, the South Korean Ministry of Knowledge Economy confirmed the RPS and established the pricing mechanism for NRE power generated under the mandates of the RPS. Fuel cells operating on natural gas and renewable biogas have earned a prominent position within the pricing mechanism due to their efficient and reliable generation of clean power.

The RPS passed by The National Assembly of the Republic of Korea requires NRE power sources to provide two percent of the power generation by 2012, increasing each year by 0.5 percent to 1.0 percent, reaching four percent by 2016 and ultimately, ten percent by 2022. Presently, only about one percent of the approximately 71 gigawatts of power generation capacity that falls under the RPS mandates is generated by renewable power sources. 

Utilities and independent power producers in South Korea are expected to purchase NRE power generation plants now that the pricing mechanics of the RPS have been confirmed. The RPS applies to power producers that generate more than 500 megawatts (MW) of power annually, impacting an estimated 15 utilities and independent power producers. Fuel cells are expected to represent a significant portion of NRE purchasing under the RPS as the clean, efficient and distributed generation attributes of fuel cells meet the needs of utilities and the requirements of the RPS.

South Korea imports over 95 percent of the fuel used to generate electricity, thus driving the need for highly efficient power generation. Fuel cells generate power through a highly efficient electrochemical reaction that does not involve combustion, thereby emitting virtually zero pollutants. Direct FuelCells offer the highest efficiency of any base load power generation technology in or near their size range. An additional attribute of fuel cells is that they reliably generate power at the point of use, reducing congestion of the transmission grid.