Wednesday, March 16, 2005

DESC To Install Wind/Hydrogen Station in Vermont

Distributed Energy Systems' Operating Units to Engineer and Install Hydrogen Fueling Station in Vermont
Tuesday March 15, 10:43 am ET
- Efficient Hydrogen Production System Demonstrates Renewable Capability

WAITSFIELD, Vt., March 15 /PRNewswire-FirstCall/ -- Distributed Energy Systems Corp. (Nasdaq: DESC - News) announced today that its wholly owned subsidiaries, Northern Power Systems and Proton Energy Systems, will build an advanced hydrogen fueling station through a partnership with EVermont, a non-profit organization that supports cleaner and more energy-sustainable vehicles. The grid-connected system will utilize locally generated renewable energy. This was made possible by a nearly $1 million Department of Energy (DOE) grant secured by Congressman Bernie Sanders (I-VT). The grant will be administered by the DOE's Hydrogen, Fuel Cell, and Infrastructure Technologies Program.

Subject to local approvals, this advanced system will be located at the Department of Public Works in Burlington, Vermont. The system will convert electric energy and water into clean hydrogen fuel, which will be stored on-site and then dispensed into clean and efficient hydrogen-fueled vehicles. Electricity for the project will be supplied by Burlington Electric Department, which generates a significant portion of its power from renewable sources, including a wind turbine located adjacent to the Public Works site. Vermont's harsh winter climate will provide valuable information about the effects of cold weather on the electrolyzer, hydrogen compression, and storage and delivery systems, as well as on hydrogen-fueled vehicles in general.

As the overall project manager, Northern Power Systems will act as coordinator between all participating entities including EVermont, DOE, Proton, and the Burlington Department of Public Works. In addition, Northern will provide turnkey services including project design, equipment procurement, site preparation, and installation and commissioning. Northern's SmartView(TM) monitoring system will enable the program to collect data and conduct analysis and reporting for DOE.

Proton Energy Systems is providing its hydrogen expertise to the project and will supply the fueling station with a Proton Exchange Membrane (PEM) H Series electrolyzer. Capable of producing 12 kg of hydrogen per day, the H Series electrolyzer is expected to validate numerous efficiency and cost-reduction concepts. First, Proton is developing a new power converter for the electrolyzer; the advanced power electronics are being designed to improve cost, functionality and efficiency. This project represents the first field test of this technology. Second, an advanced, lower cost, higher efficiency PEM cell stack will be implemented under the project. Third, new packaging concepts will advance technology for outdoor environments and reduce the cost of manufacturing. Finally, the development of controls and packaging for Proton's electrolyzer product line will advance that program's entry into fueling station applications.

"We anticipate that the Vermont station will validate a number of DOE hydrogen objectives, including reducing the cost of production, improving efficiency, and engineering an integrated system design and control," says Rob Friedland, senior vice president of Proton's Hydrogen Technology Group. "At the same time, the project results should help reduce some of the technical barriers to widespread application of a hydrogen fueling infrastructure."

Harold Garabedian, Project Manager of EVermont and Assistant Director of the Air Pollution Control Division at the Vermont Agency of Natural Resources, agrees. "This project is an important demonstration of the potential of 'wind to wheels,'" he states. "It provides a viable link between renewable energy and the transportation industry."

Jonathan Lynch, CTO of Distributed Energy Systems, is optimistic about the cooperation between the agencies involved. "This project will combine Proton's hydrogen and Northern's renewable integration expertise in a way that both supports the R&D mission of the DOE and provides a state-of-the-art hydrogen fueling facility in Vermont," states Lynch. "We thank Congressman Sanders for his vision and support of this important program."

About EVermont

EVermont Inc., started in 1993 by then-governor Howard Dean, is a public-private partnership of entities interested in documenting and advancing the performance of advanced technology vehicles that are sustainable and less burdensome on the environment, especially in areas with cold climates, hilly terrain and rural settlement patterns.

About Northern Power Systems, Inc.

Northern Power Systems, Inc. designs, builds and installs reliable power solutions for commercial, industrial, government, and military customers. The company also conducts research and development in the areas of renewable energy, distributed generation and hydrogen technology. Since its founding in 1974, Northern has installed over 800 systems in 45 countries on all seven continents. Northern Power Systems, Inc. is headquartered in Waitsfield, Vermont with field offices in the New York metropolitan area and San Francisco. The company employs 150 people with turnkey design, engineering, construction, and customer-support capabilities. Northern Power Systems is a wholly owned operating unit of Distributed Energy Systems Corp. For more information, visit

About Proton Energy Systems, Inc.

Proton Energy Systems, Inc. designs, develops, and manufactures Proton Exchange Membrane, or PEM, electrochemical products that it employs in hydrogen generating devices and in regenerative fuel cell systems that function as power generating and energy storage devices. Proton's HOGEN® hydrogen generators produce hydrogen from electricity and water in a clean and efficient process using its proprietary PEM technology. For more information visit

About Distributed Energy Systems Corp.

Distributed Energy Systems Corp. (Nasdaq: DESC - News) creates and delivers products and solutions to the emerging decentralized energy marketplace, giving users greater control over their energy cost, quality, and reliability. As the parent company of Proton Energy Systems, Inc. ( and Northern Power Systems, Inc., Distributed Energy Systems delivers a combination of practical, ready-today energy solutions and the solid business platforms for capitalizing on the changing energy landscape. For more information, visit

This press release contains forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Statements contained herein that are not statements of historical fact, including statements concerning future projects, may be deemed to be forward-looking information. Without limiting the foregoing, words such as "anticipates," "believes," "could," "estimate," "expect," "intend," "may," "might," "should," "will," and "would" and other forms of these words or similar words are intended to identify forward-looking information. Northern's and Distributed Energy's actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors. Northern Power Systems and Distributed Energy each disclaim any obligation to update these forward-looking statements. Factors that could cause results to differ materially from those contained in Northern's and Distributed Energy's forward-looking statements include, but are not limited to, failure of our products and systems to perform as specified or achieve commercial acceptance, the impact of competitive products and systems, and other factors detailed in Distributed Energy's Form 10-Q for the quarter ended September 30, 2004, and other filings Distributed Energy may make from time to time with the SEC.

Source: Distributed Energy Systems Corp.