DANBURY, Conn., Oct. 21, 2009 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc. (Nasdaq:FCEL), a leading manufacturer of high efficiency ultra-clean power plants using renewable and other fuels for commercial, industrial, government and utility customers, announced that California Governor Arnold Schwarzenegger has signed legislation (SB412) that extends the availability of incentives for clean energy technologies, including the company's ultra-clean stationary fuel cell power plants, through 2015.

The Self-Generation Incentive Program (SGIP) provides funds for a predetermined set of clean power technologies, including fuel cells, that generate electricity on-site where it is needed. This type of clean local power production, or "distributed generation," alleviates demands on the grid while complying with California's strictest-in-the-nation air quality standards. Approximately 15 megawatts (MW) of FuelCell Energy's Direct FuelCell(R) (DFC(R)) power plants in California have received support since the program's inception in 2001. More than 9 MW of these systems, or roughly 60 percent of FuelCell Energy's products in California, use renewable biogas as their fuel.

"California has always led the way in the deployment of clean energy technologies," said Jeff Cox, Senior Policy Advisor of FuelCell Energy. "Extension of the SGIP is a prime example of California's continuing commitment to improving air quality and reducing harmful emissions. Our fuel cell power plants are the most efficient, ultra-clean distributed generation available in their size range, which makes them a great solution for California."

The SGIP was created in 2001 to encourage on-site production of electricity with generation technologies that help reduce greenhouse gases while also relieving demand on the state's utility grid. The program is administered by California's investor owned utilities -- Pacific Gas & Electric, Southern California Edison, Southern California Gas Company and the California Center for Sustainable Energy in the San Diego area. With over 1,400 separate projects and $750 million in incentives paid to participants, the program continues to be the largest distributed generation initiative in the nation. By the end of 2008, it was responsible for lowering greenhouse gas emissions by over 175,000 tons of CO2 -- the equivalent of taking over 29,000 cars off the road for an entire year.

SGIP fuel cell projects are eligible for incentives of $4,500 per kilowatt when running on renewable biogas and $2,500 per kilowatt when operating on natural gas, up to 3 MW in size.