Ceramic Fuel Cells Limited zeigen die BlueGen MCHP am Ecobuild zeigen London 1-3 März 2011

Ceramic Fuel Cells Limited zeigen die BlueGen MCHP am Ecobuild zeigen London 1-3 März 2011
Ceramic Fuel Cells Limited BlueGen Einheit sei in der Ecobuild zeigen aufgezeigt 3. März 2011 auf der E. ON stehen. Das Gerät wurde auf der Seite des Ständers platziert und bekam Interesse. Die BlueGen hatte die seitlichen und hinteren Abdeckungen entfernt, so dass die Einbauten zu sehen war. E. ON 's Stand war im Bereich der erneuerbaren Abschnitt der Ecobuild zeigen, welche hauptsächlich Solar-und Luft-Wärmepumpe steht hatten. Paddy war einer der Ceramic Fuel Cells Limited Vertriebsmitarbeiter auf dem Stand und beantwortet die meisten meiner Fragen bezüglich der BlueGen und E. ON 's Anpassung MCHP Einheit, die den Kraftstoff Gennex als Kern-Stack verwendet. E. ON hat noch ihre Gennex MCHP Anpassung und ein Veröffentlichungstermin noch nicht abgeschlossen Namen. Aus diesem Grund gibt es keine Werbung / Marketing-Programm in Kraft. Es war interessant, warum E. ON wurde die Anzeige der BlueGen, da sie nicht direkt vermarkten sie, vielleicht auf Interesse messen.















Ceramic Fuel Cells verlassen sich auf ihre Partner wie E. ON, EWE, GDF etc, um ein Produkt so Markt im Moment ist es eine Zeit des Wartens für sie bis BlueGen und Gennex MCHP Anpassungen auf den Markt kommen. Soweit es sie betrifft die BlueGen ist eine vollständig getestete Gerät bereit für den Verkauf an den Massenmarkt, die ihre Hauptziel ist, wollen sie auf, die BlueGen / Gennex Produkt global. Dies ist der gleiche Fall, wenn es um den Preis geht. Es gibt kein Preisschild auf dem Gerät. Es wird ihre Partner, die ihren Preis fix und ob sie an ihre Kunden vermietet werden. Es besteht auch die Service Wartungskosten zu schließen. Das Gerät benötigt eine Service alle 12 Monate, die von wechselnden Wasserständen Ansaugfilter und Gas Ansaugfilter besteht. Die Gennex Brennstoffzellen-Modul hat eine Lebensdauer von 5 Jahren und erfordert ersetzen um diese Zeit. Deshalb ist es vielleicht besser, die Geräte leasen, da dies im Mietvertrag Plan aufgenommen werden kann, wenn Leasing zur Verfügung stehen. Ceramic Fuel Cells sagen, dass diese Geräte sind nicht für die DIY'er und muss installiert und gewartet werden durch qualifiziertes Fachpersonal.

Es gibt vielleicht einige Subventionen für die BlueGen und deren Anpassung. Deutschland ist mit der Idee, indem sie ihre Subventionen erneuerbare liebäugelt aber das ist nicht in Stein gemeißelt. Es ist ein $ 1 Mrd. Fonds in Deutschland und mit der EWE testet derzeit das Gerät ist es der Glaube der Ceramic Fuel Cells Vertriebsmitarbeiter dass BlueGen schließlich dafür wird akkreditiert zu bekommen. Wie für die Aktionäre des Unternehmens bekommen einen Rabatt, sie hätten keine Stellung zu nehmen.

Die Gennex Kraftstoff Stapel ist das Herz des Gerätes und andere Anpassungen. Das System kann nicht verkleinert werden (nur nach oben), so gibt es keine Möglichkeit für eine Micro-Mikro-KWK-portables Gerät. Es gibt noch andere Wettbewerber gibt, einschließlich der Whispergen, das nicht Ceramic Fuel Cells Limited Produkt. Dies ist vor allem für Heizung und verwendet ein Sterling-Motor an die Macht aus der Abwärme zu erzeugen. Diese nach Ceramic Fuel Cells Limited wird bedeuten, dass für 6 Monate des Jahres wird das Gerät nicht produzieren viel Macht zu verkaufen zurück an das Netz, wo BlueGen hauptsächlich zur Stromerzeugung ausgerichtet ist. Die BlueGen hat den Vorteil, da es leicht konfiguriert werden kann, andere Kohlenwasserstoffgase wie Shell Gas, Wasserstoff, Methan, Biogas etc. verwenden

Die BlueGen Produkt ist fertig, alle Ceramic Fuel Cells tun müssen, ist es, die Massen zu verkaufen. Es ist Spitzentechnologie, nur bekommen kann mit der Zeit besser. Es gibt keine Pläne für Ceramic Fuel Cells Limited zum Gennex Technologie für andere Anwendungen andere als Mini-Blockheizkraftwerke zu verwenden. Es besteht auch die Installation und Wartung Ausbildung, die von ihren Partnern, die was einige von ihnen jetzt machen, ist erforderlich werden. Mit E. ON braucht bis 100000 Einheiten um, zwischen 2012 bis 2018 an Exklusivität behalten ist es an ihnen, einen Einstieg in den britischen Markt nicht Ceramic Fuel Cells Limited erhalten.


Foto: E. ON stehen © Sean Orion
Komponiert @ EcoBuild London © Sean Orion 2011

Ceramic Fuel Cells Limited show the Bluegen MCHP at the Ecobuild show London 1-3 March 2011

Ceramic fuel cells limited Bluegen unit was being displayed at the Ecobuild show March 3, 2011 on the E.ON stand. The unit was placed on the side of the stand and was getting interest. The Bluegen had the side and back covers removed so the internals could be seen. E.ON’s stand was in the renewable section of the Ecobuild show which had mainly solar and air source heat pump stands. Paddy was one of the Ceramic fuel cells limited sales staff on the stand and answered most of my questions regarding the Bluegen and E.ON’s adaptation MCHP unit which uses the Gennex fuel stack as its core. E.ON has yet to name their Gennex MCHP adaptation and a release date has not been finalized. Due to this, there is no marketing/advertising program in place. It was interesting why E.ON was displaying the Bluegen as they are not directly marketing it, maybe to gauge interest.



















Ceramic fuel cells rely on their partners such as E.ON, EWE, GDF etc to market the product so at the moment it is a waiting game for them until Bluegen and Gennex MCHP adaptations come to market. As far as they are concerned the Bluegen is a fully tested unit ready for sale to the mass market which is their main target, they want to take the Bluegen / Gennex product global. This is the same case when it comes to the price. There is no price tag on the unit. It will be their partners who will fix their price and whether it is leased to their clients. There is also the service maintenance cost to include. The unit requires a service every 12 months which consists of changing water intake filters and gas intake filters. The Gennex fuel cell module has a life span of 5 years and will require replacing around that time. This is why it may be better to lease the units as this can be included in the lease plan if leasing will be available. Ceramic fuel cells say these units are not for the DIY’er and must be installed and serviced by qualified trained staff.

There maybe some subsidies for the Bluegen and its adaptation. Germany is toying with the idea of adding it to their renewable subsidies but this is not in stone. There is a $1 Bln fund in Germany and with EWE currently testing the unit it is the belief of the Ceramic fuel cells sales staff that Bluegen will eventually get accredited for this. As for shareholders of the company getting a discount they had no comment.

The Gennex fuel stack is the heart of the unit and other adaptations. The system cannot be scaled down (only up) so there is no possibility of a Micro-Micro CHP portable unit. There are other competitors out there including the Whispergen which is not a Ceramic fuel cells limited product. This is mainly for heating and uses a sterling engine to produce power from the exhaust heat. This according to Ceramic fuel cells limited will mean that for 6 months of the year the unit will not produce much power to sell back to the grid where Bluegen is mainly geared to power generation. The Bluegen has the advantage as it can easily be configured to use other hydrocarbon gases such as shell gas, hydrogen, methane, bio gas etc.

The Bluegen product is ready, all Ceramic Fuel Cells need to do is sell it to the masses. It is cutting edge technology that can only get better with time. There are no plans for Ceramic fuel cells limited to use the Gennex technology for other applications other than MCHP units. There is also the installation and maintenance training that will be required by their partners, which is what some of them are doing now. With E.ON needing to order 100000 units, between 2012 to 2018 to keep exclusivity it is up to them to get a foothold in the UK market not Ceramic fuel cells limited.


Photo: E.ON stand © Sean Orion
Composed @ EcoBuild London © Sean Orion 2011

Ceramic Fuel Cell Introduce The BlueGen Fuel Cell micro CHP unit

Currently Not Available In The UK until 2012


BlueGen is the latest breakthrough in small scale electricity generation - a modular style fuel cell generator that can be configured to suit a range of different markets and installations. For markets that require an alternative product approach to fully-integrated 'European style' systems, such as Japan, Northern America and Australia - BlueGen™ bridges that gap.








The future of electricity generation will be using a Distributed Generation network, where electricity can be generated and consumed at the point of use. Distributed Generation networks can address the concerns of; increasing electricity demand, limitations of traditional power generation, efficiency losses through transmission & distribution lines and significant infrastructure investment. There is a need today, and in the future, for secure and highly efficient generation of electricity with significantly lower greenhouse gas emissions. BlueGen™ is the latest in Solid Oxide Fuel Cell (SOFC) technology to deliver highly efficient electricity.

BlueGen™ utilises the latest Gennex™ fuel cell module that offers the highest levels electrical efficiency in the world – 60% net electrical efficiency. This means BlueGen™ produces more electricity from the same amount of fuel compared to traditional small scale electric generators.




BlueGen™ is fitted with an integrated heat exchanger to recover the heat from the fuel cell module. A separate water tank (not supplied) can be connected to the unit to increase the total system efficiency.

BlueGen™ can be installed as:

SSElectric Generator system; no heat recovery = power only
SSCo-Generation Ssystem; Swith Sheat Srecovery S= power + heat
Because of the high level of electric efficiency, BlueGen™ produces much less heat than other electric generators. Less heat means the unit can operate for longer, which in turn means, more high-efficiency electricity that helps reduce CO2



Functionality

The BlueGen™ unit can operate as a stand-alone generator or be remotely controlled. The output power level can be adjusted to suit a number of different electricity production requirements; from ‘constant base-load power’ generation to pre-set ‘peak shaving’ generation profiles. The BlueGen™ unit has a number of different operating modes:

Heat-up

• Fully automatic using mains power (grid Sindependent Sstart-up Snot Spossible)

Self sustain

• Unit is producing electricity, but with zero power export (e.g. in event of extended grid fault)

Power production

• Unit is exporting electricity; power output can be modulated from 0% to 100%

Cool down

• Using mains power (approx. 36 to 72 hours for safe cool down)

Specifications Spezifikationen
Model Number: BlueGen Modellnummer: BlueGen
Performance Leistung
Electric Output: 0 to 2,000 W
Power output modulation from 0 % to 100 %

Elektrische Leistung: 0 bis 2.000 W
Stromausgangsregulierung von 0 % bis 100 %

Max. Electrical Efficiency: 60 % at 1,500 W output
(Net AC export LHV)

Max. elektr. Wirkungsgrad: 60 % bei 1.500 W Leistung
(Wechselstromexport netto; unterer Heizwert)

Note: Thermal output and water recovery only possible with heat recovery system connected Anmerkung: Thermische Leistung und Wasserrückgewinnung ist nur mit angeschlossenem Wärmerückgewinnungssystem möglich
Thermal Output: Approx. 300 W to 1,000 W
Depending on electric power output and heat recovery water temperature (exhaust gas cooled to 30 °C)

Thermische Leistung: ca. 300 W bis 1.000 W
Abhängig von Stromleistung und Rücklaufttemperatur
(Abgas auf 30° gekühlt)

Total System Efficiency: Up to 85 %
(depending on heat and condensate recovered)

Gesamtsystemwirkungsgrad: Bis zu 85 %
(abhängig von der zurückgewonnenen Wärme und Kondensat)

Inputs Eingaben
Electrical: 230V ±10% 50Hz
Single Phase AC parallel grid connected

Elektrisch: 230V ±10% 50Hz
Einphasenwechselstrom parallel zum Stromnetz geschaltet

Natural Gas: For start-up & operation
Supply pressure 0.9 to 2 kPa

(integrated gas desulphurisation)

Erdgas: Für Inbetriebnahme & Betrieb:
Versorgungsdruck 0.9 bis 2 kPa

(eingebaute Gasentschwefelung)

Water: For internal steam reforming:
Supply pressure min. 100 to 600 kPa
(integrated water treatment system)

Wasser: Für interne Dampfreformierung
Versorgungsdruck min. 100 bis 600 kPa

(eingebaute Wasseraufbereitung)

Consumption (at maximum output) Verbrauch (bei maximaler Leistung)
Natural Gas: 12.6 MJ/hr (12,000 BTU/hr)
Actual gas volume dependant on composition of natural gas

Erdgas: 12.6 MJ/h. (12,000 BTU/h.)
Tatsächliches Gasvolumen abhängig von der Zusammensetzung des Erdgases

Water: 0.0 ℓ/hr - 1.67 ℓ/hr
Water consumption dependant on:

i) if heat recovery connected

ii) amount of condensate recovered from flue gas

Wasser: 0.0 ℓ/h. - 1.67 ℓ/h.
Wasserverbrauch abhängig von:

i) angeschlossene Wärmerückgewinnung

ii) Menge des aus dem Abgas zurückgewonnenen Kondensats

Outputs Ausgaben
Net AC export: 0 W – 2,000 W
Single Phase parallel grid connected: 230V ±10% 50Hz

Wechselstromexport netto: 0 W – 2,000 W
Einphase parallel am Stromnetz angeschlossen: 230V ±10% 50Hz

CO2Emissions: 340 g/kWh
Flue gas emissions consist of CO2and water vapour, virtually no NOx or SOx emissions

CO2Emissionen: 340 g/kWh
Abgasemision besteht aus CO2und Wasserdampf, nahezu keine NOx oder SOx Emissionen

Flue Gas Temperature: Max 200 °C
Maximum if heat recovery system not connected

Abgastemperatur: Max 200 °C
Höchstwert, falls Wärmerückgewinnungssystem nicht angeschlossen ist

Useable Water: Max 1.1 L/hr
From water treatment system if heat recovery system not connected

Verwendbares Wasser: Max 1.1 L/h.
Vom Wasseraufbereitungssystem, falls Wärmerückgewinnungssystem nicht angeschlossen ist

Noise level: < 45 dBa Lärmpegel: < 45 dBa
Operating Conditions & Other Betriebsbedingungen & Sonstiges
Ambient Temperature: +1 °C - +45 °C Umgebungstemperatur: +1 °C - +45 °C
Inlet Air Temperature: -20 °C - +45 °C Luftzufuhrtemperatur: -20 °C - +45 °C
Location: Indoors - excluding living zones
Outdoors - protected from the elements and above freezing temperature

Standort: Im Haus – Wohnbereiche ausgenommen
Im Freien – geschützt vor den Elementen und über dem

Gefrierpunkt

Start-up Time: 25 Hours Anlaufzeit: 25 Stunden
Minor Maintenance Approx 12 months
Air filters (depending on installed location)

Water filters (depending on input water quality)

Intervall Kleinwartung: ca. 12 Monate
Luftfilter (abhängig vom Installationsstandort)

Wasserfilter (abhängig von der eingebrachten Wasserqualität

Major Maintenance Interval: Greater than 12 months
Desulphuriser (subject to gas composition)

Air filters (depending on installed location)

Water filters (depending on input water quality)

Intervall Hauptwartung: Größer als 12 Monate
Entschwefler (abhängig von der Gaszusammensetzung)

Luftfilter (abhängig vom Standort)

Wasserfilter (abhänig von der einbringenden Wasserqualität)

Approx. Mass: < 200 kg Gewicht ca.: < 200 kg
Connections Verbindungen
Fuel: ½" BSP female Brennstoff: ½" BSP-Innengewinde
Water
Supply: ¼" quick connect ‘John Guest’ fitting

Hot water: 2 x ¾" BSP female

Drain: 2 x ¼" quick connect ‘John Guest’ fittings

Wasser
Versorgung: ¼"Anschlussverbindung "John Guest"

Heißwasser: 2 x ¾" BSP-Innengewinde

Abfluss: 2 x ¼" Schnellanschlussverbindung "John Guest"

Electricity: Hardwired via junction box on external casing Elektrizität: Festverdrahtet via Anschluss-kasten an externem Gehäuse
Flue: Balanced flue with standard concentric flue
100/60 mm diameter

Rauchabzug: Abgassystem mit konzentrischem Standard-abgassystem
100/60 mm Durchmesser

Communication: Connection via standard Ethernet port Datenübertragung: Verbindung via Standard Ethernetport
ORIONAIRSALES: Buy Air Source Heat Pumps for home use.

Ceramic Fuel Cells Limited Cashflow Report quarter end 31st Dec 2010

RNS Number : 9315Z

Ceramic Fuel Cells Limited

24 January 2011

24 January 2011

Ceramic Fuel Cells Limited

Quarterly Cashflow Report and Trading Update

Ceramic Fuel Cells Limited (AIM / ASX: CFU) a leading developer of high efficiency and low emission power products for homes, today released its quarterly cashflow report for the period ended 31 December 2010.

The cashflow report is available at www.cfcl.com.au.

Highlights

-- Conditional order for up to 200 integrated mCHP products - total contract value of up to 4.9 million Euros (AUD 6.6 million) over two years

-- Further sales of BlueGen units - cumulative orders for 62 BlueGen units in many large global markets

-- First BlueGen sale in Italy

-- Hills Industries Limited appointed as BlueGen distributor and national service and support partner in Australia

-- Progress towards product certification for UK feed-in tariff

-- BlueGen assembly transferred from Melbourne to Germany and operational from January 2011

-- Supply agreement with HC Starck secures long term volume supply of fuel cell components at agreed prices

-- Powder sale contract - CFCL's UK plant to supply ceramic powder to HC Starck

Operational Review

Order for 200 integrated products

In December the Company received a conditional order for up to 200 integrated power and heat generators from German energy service provider EWE. This is the largest order the Company has received, with total revenue of up to EUR 4.9 million over two years.

The integrated units use Ceramic Fuel Cells' patented technology to convert natural gas into electricity, hot water and space heating, with the world's highest level of electrical efficiency in small scale generators.

Ceramic Fuel Cells will supply the core Gennex fuel cell module and related components. Ceramic Fuel Cells and its local manufacturing partner, Gebruder Bruns Heiztechnik GmbH, will integrate the fuel cell module with a boiler into an integrated power and heating product for supply to EWE. EWE will then install the units in homes in the Lower Saxony region in northern Germany.

EWE is one of the largest utilities in Germany, with 6,400 staff and revenues of EUR 5.8 billion. Based in Northern Germany, EWE also has operations in other German states as well as Poland and Turkey.

The order is conditional on EWE receiving partial funding under the German government's national hydrogen and fuel cell technology innovation program. This Government program is providing EUR 700 million between 2008 and 2018. EWE has submitted a formal funding application and a positive decision is expected in early 2011.

Subject to EWE obtaining Government funding and to the units meeting agreed performance targets, EWE will order 70 units for delivery in 2011 and 130 units for delivery in 2012. The performance targets, unit prices and the rates for ongoing service and support have been agreed in a contract signed by EWE and Ceramic Fuel Cells.

This is a significant follow-on order from EWE, the Company's longest standing utility customer. The Company is confident that the German government will support the project and we look to updating shareholders in due course.

Apart from Germany, during the December quarter the Company also continued to operate integrated power and heating units with its appliance partners in the United Kingdom and France.

BlueGen sales

Apart from the integrated product, the Company has also developed a modular power and heat generator called BlueGen, to provide low emission power plus heat for hot water. One BlueGen can provide about double the electricity the average home needs - excess power can be exported to the grid - plus hot water for an average family's needs.

Like the integrated product, BlueGen uses the Company's Gennex fuel cell module to achieve electrical efficiency of 60 percent - far higher than any other small scale generator. The Company believes this very high electrical efficiency will deliver significant value to BlueGen customers, and will create a significant competitive advantage in the fast growing global market for small scale power generation.

During the December quarter the Company continued to receive orders for BlueGen units from leading energy companies and other foundation customers.

As at 24 January 2011 the Company has received orders for 59 BlueGen units, from customers in Germany, Switzerland, the United Kingdom, The Netherlands, Italy, Japan, Australia and the USA. A total of 21 BlueGen units are installed and operating in customers' sites.

Highlights during the December quarter and up to date include:

First Order in Italy

The Company has sold its first BlueGen units in Italy, to leading energy company Edison S.p.A. Edison will install one BlueGen unit, initially at its test laboratory and then at its headquarters in Milan. Edison has an option to install two further BlueGen units with Edison customers.

Founded in 1884, Edison is Europe's oldest energy company, with businesses in 10 countries in Europe, Africa and the Middle East. Edison is one of Italy's leading electricity and gas companies, providing 15 percent of Italy's electricity and 17 percent of its natural gas. 2009 revenues were EUR 9 billion. In 2010, Fortune magazine ranked Edison as the "Most Admired Company" in Italy and second worldwide in the energy sector.

The Company believes that Italy will be an ideal market for its products. There are more than 18 million homes connected to natural gas. The Italian Government has introduced several measures to support low emission power generation, including a tax benefit specifically for high efficiency micro-generation from natural gas.

E.ON UK Order

In December the Company sold three BlueGen units to one of the UK's leading energy companies, E.ON. One BlueGen will be installed in early 2011 at the E.ON training centre in Tipton, where E.ON's Property Services department trains its staff in the installation and maintenance of gas and electrical appliances. The other two BlueGen units will be installed at demonstration sites.

The Company believes that the BlueGen installation at the E.ON training centre will be particularly beneficial. Having a well trained network of installers and service technicians is critical to deploying BlueGens and integrated mCHP products in larger volumes, and to receiving accreditation in order to access the UK feed in tariff (discussed below).

In parallel with installing three BlueGen units, Ceramic Fuel Cells and E.ON are continuing to develop fully integrated power and heating products for the UK market. Under a product development agreement signed in 2009, Ceramic Fuel Cells and E.ON have agreed the development stages to move into production of commercial units. The partners are currently discussing the project plan details for the next phase of product development and deployment.

European Orders

During the quarter the Company received further orders from leading Germany energy companies, including EIFER (the European Institute for Energy Research) and EnBW, the third largest utility in Germany, and Gasag, based in Berlin. Gasag has announced that it will invest EUR 50 million in small scale power and heating over the next five years.

During the December quarter BlueGen was accredited by the relevant German Government authority (BAFA) and BlueGen customers in Germany are now eligible to receive the feed in tariff for small power and heating products.

BlueGen units were also independently tested and operated by the German Gas Association (DVGW). The Company is confident that these successful tests, and the continuing very strong interest from German energy companies, will lead to significant further BlueGen sales in Germany.

A BlueGen unit was also successfully tested at Kiwa-Gastec in The Netherlands, and is now installed in the home of a board member of Gasterra, one of the largest gas utilities in The Netherlands. A press release from Gasterra is available at their website - nieuws/berichten/Pages/woning_wordt_echte_elektriciteitsleverancier.aspx

In December the Company's French utility partner, GDF SUEZ, also ordered a BlueGen unit. GDFSUEZ will test and demonstrate the BlueGen in parallel with the existing project to develop an integrated power and heating product for the French market. GDF SUEZ is one of the largest energy companies in the world, with 214,000 staff and 2009 revenue of 79 billion Euros. GDF SUEZ is the largest buyer of natural gas in Europe.

Australian Sales

In November the Company installed the first BlueGen units as part of the order of 30 units from the Victorian Government. The BlueGen is installed in a home in the Melbourne suburb of Hampton East, and is providing electricity and hot water for the home. The Company is continuing to work with the Victorian Government Office of Housing to install the remaining units, in Melbourne and in Shepparton.

Leading Australian energy retailer Origin Energy has offered all tenants who install BlueGen units as part of the Victorian Government project a package of Green Gas plus a one-for-one feed-in tariff for the excess electricity generated by the BlueGen units. This means that a tenant who exports power to the grid will get a credit on their bill equal to the normal retail rate of electricity.

In December the Company installed a BlueGen unit at Adelaide's Central Market, South Australia's most visited tourist attraction. The Adelaide City Council and the South Australian Government have installed the BlueGen unit together with an electric vehicle charging station. This enables city shoppers to recharge their electric vehicles from low emission sources rather than carbon intensive power from the electricity grid. The new station, located in the Central Market car park, is free to users and can charge two vehicles at a time.

The Company believes that BlueGen is an ideal companion to electric vehicles, providing low emission electricity for distributed re-charging stations. The Company is pursuing several opportunities in the fast growing market for electric vehicle recharging infrastructure.

During the quarter the Company also received its first order in Queensland. A BlueGen unit will be installed by the Queensland Department of Public Works, in the Joint Contact Centre in Brisbane.

First BlueGen operating in USA

In November the Company installed the first BlueGen unit in the United States, at a Southern California Gas facility in California. Southern California Gas is the largest gas utility in the USA, with 20 million customers in California, and is part of the Fortune 500 energy services company, Sempra Energy.

BlueGen Distribution and Service in Australia

In January 2011 the Company signed an agreement with Adelaide-based Hills Holdings Limited (ASX: HIL) for Hills to sell and service the BlueGen product. Hills will distribute BlueGen, initially in South Australia, and will also provide installation and after-sales service for BlueGen products Australia-wide.

Hills is a leading manufacturer, distributor and installer of home products including premium solar hot water products. The company had revenues last financial year of AUD 1.1 billion.

The agreement is in line with Ceramic Fuel Cells' strategy to sell BlueGen units in Australia through distributors and to outsource the installation and service of BlueGen units. The agreement with Hills follows similar BlueGen distribution agreements with green products retailer Neco, based in Melbourne, and Harvey Norman's Commercial Division, in NSW and the ACT.

Hills is the Company's first BlueGen service and support partner. The Company is in discussions with potential service and support partners in other markets outside Australia and will make further announcements in due course.

UK Feed in Tariff

Ceramic Fuel Cells is continuing to make progress towards having BlueGen certified under the Microgeneration Certification Scheme ("MCS") in order to access the UK Government's feed in tariff. All microgeneration products must be accredited under MCS in order to be eligible for the UK feed in tariff.

In the December quarter a new MCS standard for electricity led micro combined heat and power units was developed, approved and published. Ceramic Fuel Cells was instrumental in instigating and promoting this new standard which is an essential requirement for accreditation under MCS. The existing standards applied to micro heat and power products which maximised heat output. This new standard applies specifically to micro heat and power products whose primary purpose is to generate electricity, with domestic hot water being an additional output.

During the December quarter the Company also successfully completed a range of tests required by the MCS.

BlueGen was successfully tested under the PAS67 standard - the British Standards Institution standard for tests to determine the heating and electrical performance of micro-cogeneration packages. This testing confirmed that BlueGen provides hot water for domestic use as well as significantly reducing net carbon emissions when compared to a modern condensing gas boiler and electricity from the UK grid. BlueGen was also tested by an independent body for its noise output.

In December the MCS auditor, BRE Global, conducted a factory assessment at Ceramic Fuel Cells' production facility in Melbourne. The Company expects the review of the data provided during this site visit to be completed during the first quarter of 2011. The Company expects this to be the final stage of the process before BlueGen is formally accredited under MCS.

Manufacturing

The Company has built a plant in Heinsberg, Germany for the volume assembly of its fuel cell stacks. All the assembly processes at the plant are fully commissioned and operating, including the ink mixing equipment and the robotic seal dispensing and assembly machines.

The Company is currently making fuel cell stacks in Heinsberg, and in Melbourne, in sufficient quantities to meet current demand. In order to increase production the Company has shipped three additional furnaces from Melbourne to Heinsberg. These additional furnaces will be fully operational in February 2011.

In order to further increase the volume of stacks the Company intends to use larger furnaces already installed at the Heinsberg plant. The Company is continuing to work with the supplier of the large volume furnaces to identify changes needed to ensure the furnaces will produce fuel cell stacks in larger volumes at acceptable quality standards.

During the quarter the Company began the process of transferring the assembly of BlueGen units from its Noble Park research and pilot production plant to the Heinsberg volume production plant, in the same building as the fuel cell stack assembly operation. The Company has expanded the Heinsberg plant, installed assembly and materials handling equipment and hired additional staff. The Heinsberg plant will begin making BlueGen units from late January 2011.

Powder and Cell Supply Agreement

In addition to scaling up its own manufacturing capability, in order to further secure a volume supply of components the Company has entered a volume cell supply agreement with leading German ceramics company HC Starck.

HC Starck is an international group of companies with more than 2,900 employees at 12 production sites in Europe, North America and Asia. HC Starck develops and manufactures a wide range of advanced ceramics products, including fuel cell components. Ceramic Fuel Cells and HC Starck have been working together since early 2008.

Under the agreement HC Starck agrees to supply a minimum volume of fuel cell components at fixed prices, subject to Ceramic Fuel Cells' specification and quality requirements. The Company believes this agreement is an important step in securing its supply chain for critical components, as well as delivering significant cost savings.

In order to make the fuel cell components for supply to CFCL, HC Starck has agreed to order a minimum volume of zirconia powder from Ceramic Fuel Cells' United Kingdom powder plant, located in Bromborough. Ceramic Fuel Cells will supply the zirconia powder at agreed prices and quality specifications.

Victorian Government Feed-in Tariff Review

In June 2010 the previous Victorian Government commenced a review into the expansion of feed-in tariffs to include low-emissions technologies like fuel cells. A feed-in tariff is a rate paid for electricity fed back into the electricity grid from designated electricity generation sources.

In Victoria there is a 'standard' feed-in tariff (equal to the retail price for electricity, or about 20 cents per kilowatt hour) for electricity fed back into the grid from wind, solar, hydro and biomass generators of up to 100 kilowatts capacity; plus a 'premium' feed-in tariff (of 60 cents per kilowatt hour) for solar systems up to 5 kilowatts capacity.

Feed-in tariffs are being used in many markets to encourage the deployment of renewable and low emissions technologies, including the United Kingdom, Germany, France and The Netherlands.

In the November 2010 election the previous Victorian Government was replaced by the Liberal National Coalition. The Liberal National Coalition plan for Energy and Resources, released before the election, includes a policy commitment to "strongly support feed-in tariffs that provide a fair reward and encourage the supply of renewable and low emissions energy into the grid".

According to the policy document, the incoming Government will direct the Victorian Competition and Efficiency Commission (VCEC) to inquire into and report on the design and implementation of a market-based gross feed-in tariff scheme (i.e. a gross feed-in tariff is based on the total amount of electricity generated rather than just the net amount exported). As part of that review VCEC will be asked to examine several possible features of a market-based gross feed-in tariff scheme, including making the tariff available to all solar, wind, fuel cell and other lower emission sources.

The Company is continuing to engage with Government on this issue and looks forward to the VCEC review.

Financial Review

Quarterly Cashflow

Net operating cash outflow for the December quarter was AUD 6.2m (GBP 3.8m) which was higher than last quarter due to increases in inventory requirements and the receipt last quarter of AUD 3.7m (GBP 2.3m) in relation to a legal settlement.

Receipts from customers for the quarter were AUD 1.1m (GBP 0.7m).

The net cash outflow after investing and financing activities for the December quarter was AUD 3.5m (GBP 2.2m).

During the quarter cash outflow from investing activities was AUD 0.6m (GBP 0.4m) for payments relating to the Company's manufacturing plant in Germany including the establishment of the BlueGen assembly operations there.

Cash inflow from financing activities included AUD 3.5m (GBP 2.2m) for the receipt of funds relating to the equity raising undertaken by the company in August / September 2010. This is in addition to AUD 26.7m (GBP 16.6m) that had already been received in the September quarter.

Net operating cash outflow for the financial half year was AUD 7.3m (GBP 4.6m) and includes receipts from customers of AUD 1.7m (GBP 1.0m). Working capital payments for the half year were AUD 6.2m (GBP 3.9m) which were AUD 4.6m (GBP 2.9m) higher then the equivalent period last year. This primarily relates to the purchase of components for both the BlueGen and Integrated m-CHP units that have been purchased to meet current period sales and expected future demand. At 31 December 2010 the value of inventory was AUD 4.9m (GBP 3.1m).

The closing cash balance measured in Australian dollars has been impacted by the strong appreciation in the Australian currency over the last 6 months. The Australian Dollar has appreciated against the pound sterling by 16.2% and the euro by 9.6%. This has given rise to unrealised foreign exchange translation losses of AUD 2.4m (GBP 1.5m) at December on the translation of foreign cash holdings back into Australian dollars for reporting purposes.

Cash at 31 December 2010 was AUD 29.8m (GBP 18.6m).

The quarterly cashflow report is also available on the Company's website at www.cfcl.com.au

For further information please contact:

Ceramic Fuel Cells (CFCL) extend microgeneration collaboration

02 February 2009 12:12
E.ON and

Ceramic Fuel Cells (Europe) Limited, a subsidiary of Ceramic Fuel Cells Limited (ASX / AIM: CFU), a global leader in fuel cell development, and E.ON, have extended their exclusive agreement to further develop and deploy fuel cell micro combined heat and power (mCHP) units in Great Britain .
Under the terms of the new agreement, E.ON and CFCL will collaborate on a joint development project to commercialise mCHP units designed specifically for the Great Britain market, based on CFCL's GENNEX fuel cell module. The commercialisation project is currently scheduled to run from 2009 to 2012 in a number of stages subject to performance criteria, with the Great Britain market launch expected to follow thereafter.

Subject to CFCL's achievement of agreed price and performance targets, E.ON and CFCL have agreed a potential future order profile, which would secure 'E.ON's exclusive distribution rights for CFCL micro CHP units within Great Britain. A minimum order of 100,000 units over six years from 2012 would be required for E.ON to continue to retain exclusivity.

Charles Bradshaw-Smith, Head of Innovation at E.ON, said:

"The agreement with CFCL reflects two years' hard work to achieve a unit with a technical performance that has met all our targets. We are now pleased to commit funding and resources, subject to the attainment of agreed milestones, to roll out a commercial unit, building on CFCL's market-leading technology. This technology signals that cleaner, more cost-effective energy in the UK home is closer than ever before."

Commenting, Brendan Dow, Managing Director of Ceramic Fuel Cells, said:

"We are delighted that E.ON, one of the leading energy companies in Europe, has chosen to extend their agreement with CFCL. This is a key endorsement and represents significant progress. This provides us with additional funding to develop commercial products, as well as strong support for future market launch and development. This reinforces CFCL as the market leader in solid oxide fuel cells with a clear path to commercialisation. CFCL continues to work with utility partners across Europe to roll out commercial units to all their customers."

CFCL and E.ON expect that the highly efficient new mCHP units would be able to power a wide range of homes and help to reduce carbon emissions in Great Britain.

This agreement follows the successful completion of the first phase of the partners' product development, in which an ‘Alpha' prototype unit, comprising a CFCL NetGenPlus unit integrated with a supplementary boiler, was installed and operated.

The Alpha unit successfully met all of E.ON's performance and lifetime requirements, exporting just under 1kW of power to the local UK grid at high efficiency and generating enough heat for an average UK home's hot water needs. The unit was installed in June 2008 and has been continuously running (on the same fuel cell stack) at the Blackpool facilities of CFCL's appliance partner ever since.

BACKGROUND TO UK MARKET

The UK Government is strongly supportive of microgeneration. Energy industry leaders and Government Ministers have agreed that CHP must play a more prominent role in the United Kingdom's transition to a low-carbon economy. The Energy Act 2008 will introduce a Feed-in-Tariff for small-scale, low-carbon electricity production including conventional gas-fired CHP units with an electrical capacity of 5MW or less.

The UK has the largest boiler market in the EU with 1.6 million gas boilers sold in the UK each year. (Source: BSRIA October 2008)

The UK renewable obligation will be £1 billion by 2010 and by 2016 all new UK homes should be zero or low carbon. There are currently about 100,000 microgeneration installations in the UK, up from 82,000 in 2004. If no additional policies are implemented, about 500,000 microgeneration units would be installed by 2015 and 2-3 million by 2020. But, with the right incentives, up to 9 million microgeneration systems could be installed by 2020, producing as much energy as 5 nuclear power stations (Source: BERR Report June 2008)