FuelCell Energy Inc. (FCE, Danbury, CT) and partner Alliance Power Inc. announced the signing of a contract to provide 500 kW of green electricity to a secondary aluminum smelter in southern California that will meet or exceed the region's tough air-pollution standards. Electricity produced by two 250 kW Direct FuelCell® (DFC®) power plants will be sold to TST Inc. (Fontana, CA) as part of a five-year power purchase agreement.
The DFC power plants are expected to be delivered to the TST site by the first quarter of 2006. Once the units begin operation, running on natural gas, their waste heat will be used to replace a large burner that preheats air as part of TST's aluminum manufacturing process. The project is an outgrowth of the South Coast Air Quality Management District (SCAQMD), which issued a request for proposals to help reduce harmful emissions by industrial customers within its region.
Financial support for the fuel cell project includes up to $1.25 million from the California Public Utility Commission's Self-Generation Incentive Program, which encourages electrical customers to install distributed generation that operates on renewable fuel or contributes to system reliability. Another $500,000 stems from the SCAQMD, through funds accumulated through emissions penalties.
