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 (NYSE: 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 (Nasdaq: 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 http://www.chevronenergy.com and http://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
http://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.
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