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Thursday, 06/29/2006 5:15:38 PM

Thursday, June 29, 2006 5:15:38 PM

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Proton Energy Commissions Fuel-Cell-Based Backup Power Systems for Local Utility and Major Telecom; Connecticut Clean Energy Fund Finances 2 More Demonstration Projects

WALLINGFORD, Conn.--(BUSINESS WIRE)--June 29, 2006--Proton Energy Systems, a subsidiary of Distributed Energy Systems Corp., announced today that its hydrogen technology group commissioned two additional fuel cell-based backup power systems. Both projects - one at the Town of Wallingford's power substation and the other for a major telecommunications company -- have been made possible by funding from the Connecticut Clean Energy Fund (CCEF).

Proton said the projects demonstrate how regenerative fuel cells can be used as a clean, reliable alternative to the large arrays of lead-acid batteries that most commonly provide backup power solutions in similar applications.

The company's proprietary regenerative fuel cell creates its own fuel using water and electricity to generate pure hydrogen. Then, when electricity is needed, such as for backup power in these applications, the process is reversed to produce the necessary electricity from the stored hydrogen in a clean and efficient process. Proton is a leader in hydrogen-related and fuel-cell-based technologies, and provides electricity-oriented energy systems and services for industrial, commercial and government organizations.

The Wallingford Electric division of the Town of Wallingford's Department of Public Utilities is using the Proton-developed substation backup system to deliver 10kW of power for up to eight hours of operation in the event of a power failure. It utilizes Proton's outdoor high-pressure hydrogen electrolyzer and three GenCore fuel-cell modules from Plug Power Inc..

Rick Hendershot, general manager for the Town of Wallingford's Dept of Public Utility Controls, said, "We look forward to 'hosting' Proton's new 15-kW Unigen(R) regenerative fuel cell system, and to demonstrating the feasibility and effectiveness of this new technology in an electric utility application. Wallingford Electric has committed significant time and effort while working with Proton to prepare both the substation and the Unigen system for this long-term trial installation, and views this as an excellent opportunity to gain first-hand operating experience with an advanced technology while working with a local manufacturer."

The second system provides critical backup power at a major telecommunications company site. This system provides a minimum of 3.5kW of backup power and also utilizes a high-pressure hydrogen electrolyzer, enabling switching stations to continue to function even during a prolonged power outage.

"These demonstration systems offer real world testing of our high pressure electrolysis technology, coupled to a fuel cell, to provide a fully autonomous regenerative fuel cell solution," said Rob Friedland, senior vice president and head of the Proton's hydrogen technology group. "The projects also provide critical experience for dealing with different market applications, evolving codes and standards and cold weather climates. We are very grateful to our technology partners and to the Connecticut Clean Energy Fund for their continued support of our company and these projects."

"Fuel cell technology is meeting a broader variety of today's power requirements," said Keith Frame, associate director, new technologies and project management at the Connecticut Clean Energy Fund. "Both demonstration systems are proving that fuel cell technology can function as an effective energy source for critical backup power, and CCEF is committed to supporting clean energy solutions such as these."


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