Enbridge Inc. and FuelCell Energy Sign Distribution Agreement
November 05 2003 - 8:19AM
PR Newswire (US)
Enbridge Inc. and FuelCell Energy Sign Distribution Agreement
CALGARY, Alberta and DANBURY, Conn., Nov. 5 /PRNewswire-FirstCall/
-- Enbridge Inc. (NYSE: ENB; TSX: ENB), a leader in energy
transportation and distribution in North America and
internationally, and FuelCell Energy, Inc. , 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 http://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
http://www.fuelcellenergy.com/ . 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. DATASOURCE:
Enbridge Inc.; FuelCell Energy , Inc. CONTACT: Media and Investors
- Steven P. Eschbach, CFA, of FuelCell Energy, +1-203-825-6000, ;
or Media - Jim Rennie, +1-403-231-3931, , or Investors - Colin
Gruending, +1-403-231-5919, , both of Enbridge Web site:
http://www.enbridge.com/ http://www.fuelcellenergy.com/
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