1. Jefferies 7th Global Clean Technology Conference March 17, 2009
R. Daniel Brdar
Chairman & CEO
FuelCell Energy, Inc.
NASDAQ: FCEL

2. 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.

3. Overview
Global demand for electric power expected to grow from to 27.1 trillion kWh by 2025¹
66% of the world’s electricity was from fossil fuels in 20052
Wind and solar are providing less than 2% of total electricity due to intermittent nature²
Environmental needs driving ultra-clean power generation solutions
Ability to reduce energy cost and CO2 is dependent on increasing energy efficiency…
1. Energy Information Administration, “International Energy Outlook 2007, p International Energy Agency, Key World Energy Statistics 2007, p. 24.

4. Overview
FCE is uniquely positioned to capture the commercial, industrial and utilities ultra-clean power generation market
DFC products provide commercial, industrial and utility customers:
Higher electrical efficiency than competing technologies
Near-zero NOX, SOX and lower CO2 emissions
Reliable, secure, 24/7 uninterrupted power
Competitive economics
Cleaner & quieter operation
Fuel flexibility
Connection to existing electricity and fuel infrastructure
Grid independence and more control over power costs
San Diego Sheraton, CA

5. Revenues and Backlog

6. Electricity is worth 6 to 30 times as much as heat
High Electrical Efficiency
High Electrical Efficiency is the Key to Customer Value In power generation all fuel ends up as electricity or heat
12 – 16 cents/kWh
Electricity
Fuel
Heat
0.5 – 2 cents/kWh
Electricity is worth 6 to 30 times as much as heat

7. High Electrical Efficiency
DFC power plants offer the highest efficiency of any distributed generation technology
60%
40%
20%
30%
50%
10%
DFC-ERG DFC/Turbine 58 – 65%
Fuel to Electrical Efficiency
Direct FuelCell (DFC) 47%
Natural Gas Engines 30 – 42%
Small Gas Turbines 25 –35%
Micro- turbines 25 – 30%

8. Typical Applications 300 kW 1.4 MW 2.8 MW
Average-Sized Grocery Stores, 300-Bed Hotels
300 kW
1.4 MW
1000-Bed Hotels, Convention Centers, Wastewater Treatment, Food/Beverage
300-Bed Hospitals, Manufacturing, Universities
2.8 MW
Grid Support, RPS 10 MW +

9. Sierra Nevada Brewing needed a reliable power supply
Case Study
Sierra Nevada Brewing needed a reliable power supply
Challenge:
Need for reliable, cost effective, ultra-clean source of power
Solution:
1 MW of fuel cells provide 24/7 power and high efficiency
Uses both anaerobic digester gas & natural gas for fuel
Fuel cell waste heat used in anaerobic digester process
Excess electricity sold to the grid
Results:
>20% savings in energy costs
Carbon savings is equivalent to removing ~500 cars/year

10. Santa Rita Jail needed ultra-clean, reliable, 24/7 power
Case Study
Santa Rita Jail needed ultra-clean, reliable, 24/7 power
Challenge:
Facility with 4,000 inmates in 18 housing
units needed 24/7, ultra-clean, reliable
power to supplement the intermittent
power from its solar array
Solution:
1 MW of fuel cells for ultra-clean, 24/7 power
Waste heat used to make hot water
Results:
Fuel cells provide 30% of 24/7 electric requirements & 18% of jail’s hot water needs
County of Alameda estimates its energy savings at over $250,000 a year

11. Case Study
Sharp – one of the world’s largest solar panel makers needed 24/7 power for its “Super Green Factory”
Challenge:
Sharp needed reliable, high efficiency, 24/7 power for its new “Super Green” flat screen television factory
Solution:
1 MW of fuel cells provide near-zero emissions and high efficiency
Waste heat is fed to an absorption chiller to provide factory air conditioning
Results:
Largest fuel cell installation in Japan
CHP application provides energy savings
~3,000 tons of CO2 saved annually
Plant called Sharp’s “Crown Jewel” in full page in NY Times ad

12. Leadership Key Geographies
Path to Profitability
Strategy
Product Cost
Reductions
Leadership Key Geographies
Build
Multi-Megawatt
and RPS Markets
Build On-site Markets

13. Market Leadership Markets 65 MW installed/backlog Japan/Korea: 42 MW
California/West Coast: 15 MW
Northeast/Canada: 4 MW
Europe: 2 MW
Targeted applications
Grid Support: 39 MW
Renewable/Wastewater: 9 MW
Manufacturing: 6 MW
Hotels: 3 MW
University & Hospitals: 2 MW
Government: 3 MW
DFC-ERG 1 MW
Multi-MW and RPS Markets
Connecticut Project 150
POSCO Power agreement targets multi-MW potential in South Korea

14. Build MW and Multi-MW Markets
Target Renewable Portfolio Standard (RPS) markets
28 states and D.C. now have RPS mandates
Estimated at 88 GW by 2025
Cost effective due to high efficiency
Avoids new generation, transmission and distribution investment and roadblocks
Addresses customer demand for RPS solutions
Utilities will participate to satisfy RPS requirements and avoid penalties
Federal Investment Tax Credit includes utilities for the first time
$3000/kilowatt or 30% of project cost
Extends through 2016
14.4 MW DFC® Plant
DFC-ERGTM

15. MW-Class: Connecticut
Connecticut has RPS mandate
27% of peak electricity consumption, or about 1,000 MW, from clean generation by 2020
Funded RPS requires 150 MW
near-term
16.2 MW of DFC projects approved in Round 2:
9 MW DFC-ERG with ~60% efficiency
Two DFC 3000 hospital projects
27 MW of DFC projects approved in Round 3 draft:
3 DFC-ERG, 5 DFC3000 and 1 DFC/T
DFC-ERG and DFC/T ~60% efficiency
Final decision due April 2009
1.2 MW DFC1500 at Pepperidge Farm Bakery in Bloomfield, CT

16. World’s 1st DFC3000 Installation in Korea
MW-Class: Asia
Asia is adopting distributed generation
Kyoto Protocol drives ultra-clean, 24/7 need
Fuel cells declared a key economic driver in S. Korea
POSCO Power ordered 38.2 MW to date
POSCO Power formed a fuel cell marketing alliance with S. Korea’s only electric utility
50 MW Balance of Plant production facility opened in September 2008
POSCO BOP Manufacturing Plant
World’s 1st DFC3000 Installation in Korea

17. MW-Class: California Large installed base and backlog
California is a leader in clean energy deployment
Coal and nuclear power generation not welcome
AB32 strictly regulates greenhouse gases restricting use of turbines and engines
Self-Generation Incentive Program increased to include MW-Class power plants
Distributed generation deployment is easier and faster than large central generation power plants
55% of electricity generation in California is from natural gas
1 MW at California State University, Northridge

18. 1 MW DFC1500 at a wastewater treatment facility in southern CA
Wastewater Market
Wastewater treatment facilities and food/beverage processors are a growing source of renewable biogas
Using biogas in combustion-based turbines and engines produces pollution
Fuel cells produce ultra-clean power using biogas more efficiently than any other distributed generation solution their size
Byproduct heat is used in treatment process increasing efficiency up to 80%
~50% of FuelCell Energy’s California installations and backlog are at wastewater and food/beverage facilities
1 MW DFC1500 at a wastewater treatment facility in southern CA

19. MW-Class: DFC-ERG
DFC-ERG provides heat for natural gas pipeline letdown operations
Heat warms gas to prevent freezing as pressure is let down from trans-continental pipelines to local lines
Excess electricity sold to the grid
Improved economics and lower carbon emissions from 60% electrical efficiency
First site commissioned in Toronto
Second site slated for Milford, Conn. under Round 2 of Project 150
Market opportunity extends to gas utilities worldwide
Estimated at MW in Toronto, California and the Northeast U.S.

20. Global Distribution

21. Our product costs are declining while grid power costs are increasing
Cost of Electricity
Our product costs are declining while grid power costs are increasing

22. DFC3000 Cost Savings
1st gross margin profitable MW-class units will be manufactured starting in July 2009
Captured Cost Reduction from
Future Cost Reductions to Less Than $2000/kW
Value Engineering & Mfg. Process Improvement 21%
Volume Related Manufacturing Improvement 14%
Technology Uprate 20%
Value Engineering 54%
Supply Chain Management 13%
Volume Related Sourcing 14%
Power Uprate 29%
Global Sourcing 22%
Service Process Improvement 4%
Manufacturing Process Improvement 9%

23. Competitive Advantages
Fuel cell power plants enable broad based distributed generation
Distributed generation puts power where customers need it
Increases power reliability
Uses existing transmission & distribution lines
Reduces need for central power plants
Balances the grid with 24/7 power that enables increased solar and wind generation
Meets requirements for low carbon technology
Smaller project sizes enable quick permitting, financing, and execution
600 kW at M&L Commodities

24. Production Capabilities
Production and delivery capabilities meet current demand
State-of-the-art manufacturing in Torrington, Conn.
50 MW capacity
Production rate of 30 MW/year
Strong supply chain in place
Expansion plan to achieve 150 MW capacity
Add production capacity to furnace and other operations
Build conditioning facilities local to customer base
Torrington, CT
Danbury, CT

25. Summary Product performance expanding markets
Customers/applications providing repeatable order flow – Asia, California, CT
RPS and South Korean markets creating multi-MW volume
Established manufacturing capability to meet current and future demand
Cost reduction and volume on path to profitability
New MW-class design in production 4FQ2009 will be first gross margin profitable products
Pohang, Korea