FUEL CELLS

Fuel Cells: The Clean Energy You Count On COST 2

Electrical Efficiency A NEW ENERGY MODEL Old Utility Model New Fuel Cell Model Fossil Fuels Nuclear PureCell® Model 400 System Electricity Primary & Backup Electricity Efficiency: 33% Natural Gas Heat Efficiency: 90% Fossil Fuels Heat Heat Efficiency 50% Electrical Efficiency 40% Fuel Cells provide a 41% reduction in CO2 Up to 90% total CHP energy efficiency Efficiency: 80% Diesel Backup Power Insurance cost (operates on demand) Scalable Power: 440kW – 100MW 3

NEW BRITAIN HIGH SCHOOL PROJECT One PureCell® Model 400 Providing Primary Power, Heating for the school and hot water Fuel cell installed September 2016 CHP Benefits Energy Cost Savings: No capital PPA with savings in year one, >$3.3M over 10 years GHG savings: 318 MT/yr. (75 acres trees) Water savings: 1.65 million gallons/yr. 4 4

Public Policy Goals Fuel cell technology power stations advance several important public policy goals Distributed Generation Fuel cell distributed generation resources reinforce the reliability and security of the electric grid by dispersing power generation assets throughout a service area.  Fuel cell power plants can be located at existing utility substations, avoiding the need to invest in costly and difficult to site transmission lines. Renewable Portfolio Standards (RPS) Ultra-clean and efficient fuel cell power plants support renewable portfolio standards (RPS) and sustainability initiatives.  The favorable emission profile of fuel cell power plants, including their low carbon profile, make the plants eligible for renewable energy credits (RECs). Scalable Fuel cell power plants are scalable, providing a cost-effective approach to adding power generation incrementally. Reliable Power Fuel cells provide continuous high-quality power as long as they are supplied with fuel, such as clean natural gas. 5 5

Operational Features Fuel cell power generating facilities provide superior environmental, development, and operational features: Efficient Generate electricity with an unparalleled electrical power generation efficiency approaching 60% Ultra-clean Emit CO2 at levels below the CT average grid with near-zero emissions of NOx, SOx, and PM10. Low Permitting and Community Risk CT exempts fuel cells from a written air permit, including those fueled by natural gas. Quiet Fuel cells have a significantly reduced acoustic profile compared to other generation technologies, making them suitable for almost any location. Controllable Can be set to vary output over a scheduled period of time, be disconnected, island, and return to full power, and can operate at low capacity factor without degradation in heat rate. 6

TOWN OF BEACON FALLS Close proximity to the Fuel Cell Energy manufacturing plant for ease of delivery of the major equipment. Property owned by O&G and zoned for industrial usage. Property is in close proximity to both electrical and natural gas fuel interconnections. No Endangered species impact.

TOWN OF BEACON FALLS Almost zero noise and emissions impact on the one proximate neighborhood (~10 residences). PILOT tax stabilization agreement yields $49.7 million in revenue over initial 22.5 years of life. Potential residential/industrial tie-ins to natural gas lines that would not otherwise exist.