From Waste to Watts: City of Rialto Teams with Chevron, FuelCell Energy to Turn Restaurant Grease Into Renewable Power

Ultra-clean fuel cell system will use biogas produced by kitchen grease to

power wastewater treatment plant, reduce energy costs, grow city revenues,

improve air quality

    RIALTO, Calif., May 8 /PRNewswire-FirstCall/ -- Chevron Energy
 Solutions, a Chevron ( CVX) subsidiary, today announced that it has
 begun engineering and construction of an innovative system at the City of
 Rialto's wastewater treatment facility that will transform wastewater
 sludge and kitchen grease from local restaurants into clean, renewable
 power.
     The environmentally friendly system will increase municipal revenues,
 reduce landfill wastes and lower greenhouse emissions by nearly 5.5 million
 tons annually, while decreasing the city's energy costs by about $800,000 a
 year. The system includes a 900-kilowatt fuel cell power plant,
 manufactured by FuelCell Energy ( FCEL), that will generate
 electricity without combustion using methane, a biogas produced naturally
 on site by the organic materials contained in wastewater.
     "Through energy efficiency, renewable power and innovation, this system
 solves a messy problem for cities," said Jim Davis, president of Chevron
 Energy Solutions. "By looking at wastewater treatment operations
 holistically, we're helping Rialto and other cities transform an urban
 waste into an asset."
     The new system will provide a beneficial use for the thousands of
 gallons of fats, oils and grease (FOG) that are washed daily from
 restaurant grills and pans. The watery liquid is collected by grease
 hauling companies and often disposed of in landfills, where it releases
 methane -- a potent greenhouse gas -- as it decomposes, sometimes directly
 into the atmosphere.
     At the Rialto facility, a FOG-receiving station will provide an
 effective disposal alternative, reducing the amount of FOG sent to
 landfills. It also will provide a revenue stream to the city through
 "tipping fees" paid by grease haulers for each disposal. Meanwhile, the
 fuel cell plant and other energy-efficient improvements will reduce
 greenhouse gas emissions by 11 million pounds of carbon dioxide annually,
 equivalent to removing 1,080 cars from the road each year.
     In Rialto, a Los Angeles suburb of about 100,000 residents, forecasted
 population growth necessitated the expansion and upgrade of the city's
 aging wastewater treatment facility. The project, which costs $15.1
 million, is eligible for a $4.05 million rebate on the fuel cell plant cost
 from California's Self-Generation Incentive Program, administered by
 Southern California Gas. The remaining cost will be self-funded through
 energy cost savings and FOG station revenues, without any impact on local
 taxpayers.
     "Our city council and I are delighted to have found a solution with so
 many benefits all around," said Grace Vargas, Rialto's mayor. "It's a 'win'
 for multiple stakeholders -- our city taxpayers, restaurants, grease
 haulers, and the environment."
     Chevron Energy Solutions will proceed with engineering and construction
 of the project over the next few months. Project highlights include
 installation of the FOG-receiving station; repairs to the current digester
 equipment, where methane is naturally produced from organic matter; a new
 automation system and controls; a high-efficiency boiler; and three
 300-kilowatt Direct FuelCell(R) units that will convert methane into
 hydrogen and then use the hydrogen to generate power electrochemically,
 without combustion. In addition, the residual waste heat from the fuel
 cells will be put to work to warm the digesters to human body temperature,
 to stimulate further methane production.
     Fuelcell Energy sold its fuel cell plant to Rialto through Chevron
 Energy Solutions and will maintain the plant after it is installed. Because
 of its ultra-clean emission profile, the plant meets California's stringent
 air quality standards and is expected to be sited easily. It will also
 provide baseload power around the clock.
     "Rialto can make use of existing resources and generate high efficiency
 power that is environmentally friendly while saving money on its energy
 costs," said William Karambelas, vice president of business development of
 FuelCell Energy. "This is a consistent and compelling story from both
 economic and environmental standpoints."
     About Chevron Energy Solutions
     Chevron Energy Solutions provides public institutions and businesses
 with environmentally sound projects that increase energy efficiency, reduce
 energy costs and ensure reliable, high-quality power for critical
 operations. The company employs proven technologies to meet customers'
 specific needs, including infrastructure technologies, energy controls,
 solar power, fuel cells and other systems. Its parent, Chevron Corporation,
 is investing across the energy spectrum to develop energy sources for
 future generations by expanding the capabilities of alternative and
 renewable energy technologies. Since 2000, Chevron, through its various
 subsidiaries, has spent more than $1.5 billion on renewable energy projects
 and on delivering energy efficiency solutions. For more information, please
 visit www.chevronenergy.com and www.chevron.com.
     About FuelCell Energy, Inc.
     FuelCell Energy is the world leader in the development and production
 of stationary fuelcells for commercial, industrial, municipal and utility
 customers. FuelCell Energy's secure, ultra-clean and high efficiency DFC(r)
 fuel cells are generating power at over 60 installations worldwide. The
 company's power plants have generated more than 150 million kWh of power
 using a variety of fuels including renewable wastewater gas, biogas from
 beer, onion, and milk processing as well as natural gas and other
 hydrocarbon fuels. FuelCell Energy has partnerships with major power plant
 developers, trading companies and power companies around the world. The
 company also receives substantial funding from the U.S. Department of
 Energy and other government agencies for the development of leading edge
 technologies such as hybrid fuel cell/turbine generators and solid oxide
 fuel cells. For more information please visit our website at
 www.fuelcellenergy.com.
     Cautionary Statement Relevant To Forward-Looking Information For The
 Purpose Of "Safe Harbor" Provisions Of The Private Securities Litigation
 Reform Act Of 1995.
     Some of the items discussed in this press release are forward-looking
 statements about FuelCell Energy's operations and the plans of Chevron
 Energy Solutions to install a system at the City of Rialto's wastewater
 treatment facility that is expected to transform wastewater sludge and
 kitchen grease from local restaurants into clean, renewable power. These
 statements are based upon the companies' management's current expectations,
 estimates and projections; are not guarantees of future performance; and
 are subject to certain risks, uncertainties and other factors, some of
 which are beyond the company's control and are difficult to predict. You
 should not place undue reliance on these forward-looking statements, which
 speak only as of the date of this press release. Unless legally required,
 Chevron Energy Solutions and FuelCell Energy undertake no obligation to
 update publicly any forward-looking statements, whether as a result of new
 information, future events or otherwise.
 
 

SOURCE Chevron Corporation