Enbridge Inc. and FuelCell Energy Sign Distribution Agreement

Nov 05, 2003, 00:00 ET from Enbridge Inc. from ,FuelCell Energy , Inc.

    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.
 (Nasdaq:   FCEL), 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 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 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.

SOURCE Enbridge Inc.; FuelCell Energy , Inc.