First fully funded BlueGEN programme in conjunction with iPower Ceramic Fuel Cells Limited

RNS Number : 1456X

Ceramic Fuel Cells Limited

17 November 2014

 
                        17 November 2014 
 
       First fully funded BlueGEN programme in conjunction 
                           with iPower 
 
          Ceramic Fuel Cells Limited (ASX/AIM: CFU) is 
           pleased to announce the commencement of the 
           first fully funded BlueGEN programme, where 
           the BlueGEN is installed at no cost to the 
           end user. The programme, comprising a 100kW 
          fleet of BlueGENs (a minimum of 65 units) is 
        targeted primarily at public sector organisations 
           that can take advantage of the significant 
         carbon and energy savings BlueGEN has to offer. 
        The innovative funding structure allows BlueGENs 
           to be installed in end user premises at no 
          upfront cost. End users pay for the costs of 
           gas and BlueGEN maintenance and receive the 
          benefits of the electricity generated and the 
                  heat recovered for hot water. 
           This programme has been developed and will 
         be run by one of CFCL's UK distributors, iPower 
                    Energy Limited (iPower). 
      iPower has also confirmed its interest in developing 
           a second, larger programme with CFCL in the 
      second half of calendar year 2015. These discussions 
       will include various new appraisals and opportunity 
           pipeline assessments which are expected to 
           take place in parallel with the delivery of 
                      this first programme. 
          The terms of the agreement signed with iPower 
           are conditional on drawdown from a facility 
          provided by a 3(rd) party funder. iPower will 
         make a deposit of GBP350,000 (A$636,000) which 
           is expected to be received by CFCL early in 
         December. In order to meet the criteria imposed 
           by the 3(rd) party funding provider, iPower 
          has secured formal confirmations of interest 
           from participating end users for a majority 
                      of the installations. 
          Bob Kennett, CEO of CFCL, commented, "Earlier 
         this year we announced our intention to revise 
         our sales strategy in order to focus primarily 
          on larger scale projects. We are very pleased 
           to see the first of a number of projects of 
       this type come to fruition. It clearly demonstrates 
          the commercial viability of this contractual 
          structure whereby 3(rd) party funding is used 
          to support the project and provide end users 
                   with attractive benefits." 
           Jon Cape, MD of iPower, commented, "iPower 
          is delighted to be working with CFCL on this 
          ground-breaking initiative. The programme is 
           able to provide customers with net savings 
          of 20-40% on the cost of energy displaced by 
           the BlueGEN with no upfront cost and we see 
         strong potential to progress to a substantially 
        larger Stage 2 Programme for which we are already 
         in dialogue with prospective funding partners."