Caterpillar Inc. and FuelCell Energy, Inc. have formalized and expanded their agreement to distribute and develop ultra-low emission Direct FuelCell (DFC) power generation products for industrial and commercial use. Under the 10-year alliance agreement, customers will now be able to buy these innovative systems from Caterpillar dealers in selected regions in North America.
The agreement, signed April 26, 2002, strengthens the relationship FuelCell Energy and Caterpillar established in November 2001. It calls for the companies to jointly develop Caterpillar-branded power plants in the 250kW to 3MW size range, incorporating FuelCell Energy’s fuel cell module. (For reference, 1kW represents enough electricity to power an average home.)
The companies will also explore the development of a hybrid power system using Caterpillar’s turbine engine technology and FuelCellEnergy’s products. These efforts build on the strengths of each company -- FuelCell Energy’s fuel cell module and Caterpillar’s technical expertise in systems packaging, electronics, power conditioning and gas turbine engines.
"The alliance between Caterpillar and FuelCell Energy marks another significant milestone in Caterpillar’s growth strategy to invest in socially responsible energy solutions. We’re pleased with the expansion of our product line, adding FuelCell Energy systems as an additional clean power solution," said Jim Parker, Caterpillar vice president with responsibility for the company’s Power Systems Marketing Division. "We continue to strengthen our position as the global leader in distributed power, thanks to Caterpillar’s broad product line which delivers low operating costs, proven reliability and global distribution and support."
"Caterpillar’s confidence in our technology further validates the inherent value of fuel cells as an important power generation solution," said Jerry D. Leitman, president and CEO of FuelCell Energy Inc. "This alliance further advances our strategy to work with the power industry’s best companies to develop and deliver DFC power plants to customers."
The market drivers for distributed power generation are strong and growing. The global 24/7 economy is demanding reliable energy generation that the present constrained transmission and distribution network cannot accommodate.
FuelCell Energy’s Direct FuelCells generate electricity with no combustion. Fuel cells are similar to large, continuously running batteries, using natural gas or other fuel to generate electricity through electrochemical reactions. They provide steady power to industrial and commercial customers such as hospitals,hotels, factories and telecommunications facilities.
The agreement with FuelCell Energy introduces reliable, highly efficient, ultra-low emission base load power plant applications to Caterpillar’s portfolio of distributed generation power products, which provide on site generation where power is needed. Caterpillar also anticipates marketing fuel cell power plants.
