Ceramic Fuel Cells Limited CFCL Funding Update

Ceramic Fuel Cells Limited CFCL Funding Update

RNS Number : 5714D

Ceramic Fuel Cells Limited

30 April 2013

30 April 2013

CFCL Funding Update

Ceramic Fuel Cells Limited (AIM / ASX: CFU) a leading developer of generators which use fuel cell technology to convert natural gas into electricity and heat for homes and other buildings, provides the following further update to shareholders on its fund raising activities.

The Company has received in principal commitments from institutional investors in the UK to raise an amount of GBP 4.3 million (AUD 6.5 million), subject to the finalisation of transaction documents with each of them. This documentation is expected to be completed over the next 2 days. The amount to be raised may increase further over that period.

The fundraising will be constituted by the issue of both new ordinary shares and secured convertible loan notes. The notes will have a 3 year term, a 9% per annum coupon rate (payable quarterly) and can be converted into equity at anytime at the holder's election. The issue price of the new ordinary shares and the conversion price for the loan notes will be 2.14 pence per share (approximately 3.2 cents).

The Company proposes to convene an extraordinary general meeting of its members to approve certain elements of the capital raising and in particular, the grant of security over the Company's intellectual property to secure repayment of the convertible loan notes.

In addition to these funds, the Company expects to receive a further AUD 5.0m (GBP 3.3m) in cash from the Australian Government around the middle of the year in relation to a tax refund. This amount arises as a refundable credit in relation to the Company's FY12 Research & Development expenditure that is claimable for tax purposes.

The Company will provide further details on the fund raising in the next few days.

About Ceramic Fuel Cells Limited:

Ceramic Fuel Cells (CFCL) is a global leader in the development and manufacture of solid oxide fuel cell-based micro combined heat and power generators and offers the first commercially available product in Europe. Located in Australia and Europe, CFCL's initial focus markets to commercialize the technology are the UK, Germany and the Benelux countries. The company employs about 120 people worldwide, including the UK. CFCL is listed on the AIM market of the London stock exchange and on the Australian stock exchange (code CFU). (www.cfcl.com.au)

CFCL Welcomes Forthcoming Rise in UK Feed in Tariff

Friday 3 February 2012

CFCL Welcomes Forthcoming Rise in UK Feed in Tariff

Minister confirms strong support for Micro Heat and Power

Ceramic Fuel Cells (AIM / ASX: CFU) a leading developer of high efficiency and low emission power products for homes and other buildings, welcomes the recent comments made by Greg Barker, UK Minister of State (Climate Change) MP, during an adjournment debate on micro heat and power ("micro-CHP") at the House of Commons.

The Minister confirmed his intention to raise the UK feed in tariff for micro-CHP, remove the 30,000 cap in the upcoming Phase 2 of the feed in tariff consultation, provide support to the ambition of a 1 million unit installed base by 2020 and for future regulatory measures to drive micro-CHP uptake.

The UK currently provides a feed in tariff for micro CHP products, which generate power and heat on-site. The tariff is 10 pence for every kilowatt hour of electricity generated plus an additional three pence for every kilowatt hour of electricity exported to the grid. Ceramic Fuel Cells' BlueGen product is the first and currently the only fuel cell micro CHP product to receive certification under the Microgeneration Certification Scheme (MCS) and be eligible for the feed in tariff.

Comments made by Minister Barker included:

"Micro-CHP can play a much larger role in driving the decentralised energy revolution...there are few homes that couldn't benefit from micro-CHP... There is a clear role for Government leadership to bring micro-CHP to market...as an attractive, price-competitive alternative to taking electricity from the grid or installing a conventional boiler."

Commenting on the Minister's intentions, Paddy Thompson, Business Development Manager, CFCL, said:

"Decentralised energy production via micro-CHP offers significant efficiency savings and it is very encouraging to hear that the UK government fully recognizes this and intends to plays its part in supporting the growth of the micro-CHP industry.

"CFCL's BlueGen is the only fuel cell based micro-CHP product available to the UK residential market with the necessary approvals to receive the feed in tariff. As one of the world's leading companies committed to driving down energy costs via micro-CHP, CFCL looks forward to supporting the initiatives of the UK government."

Ceramic Fuel Cells' BlueGen product converts natural gas into electricity and heat for hot water for homes and other buildings. BlueGen delivers an electrical efficiency of up to 60 percent - the highest in the world. When the heat from BlueGen is used to produce hot water, total efficiency increases to up to 85 percent.

E.ON UK ORDERS ADDITIONAL 105 CERAMIC FUEL CELLS' PRODUCTS 28 November 2011

RNS Number : 8480S

Ceramic Fuel Cells Limited

28 November 2011

Ceramic Fuel Cells Limited [AIM/ASX: CFU], a leading developer of high efficiency and low emission electricity generators for homes and other buildings, is pleased to announce that it has received a new 105 unit order from E.ON UK, one of the UK's leading power and gas companies.

E.ON has also reaffirmed that they are committed to working with CFCL to launch integrated power and heating products for the UK market.

New agreements have been signed with E.ON covering both Ceramic Fuel Cells' BlueGen modular generator and the micro combined heat and power unit in development. Each product uses CFCL's Gennex fuel cell module as its core technology.

   BlueGen          (power + hot water) 

E.ON has ordered 41 BlueGen electricity generators to be deployed under the European Union Fuel Cell and Hydrogen Joint Undertaking's Joint Technology Initiative ("JTI") fuel cell demonstration programme. The JTI project partners are E.ON, CFCL, Ideal Boilers Limited and HOMA Software BV of The Netherlands. Under the JTI project, the BlueGen units will be installed in homes and other buildings in the UK, Germany and The Netherlands, during early 2012.

Ideal Boilers is an established UK heating company that has produced boilers for over 100 years. HOMA Software is a software house specialising in remote monitoring and control of micro combined heat and power systems.

An additional four BlueGen units will be deployed by E.ON in demonstration and commercial customer sites.

BlueGen is the first and only fuel cell product to receive Microgeneration Certification Scheme (MCS) certification and be eligible for the UK feed in tariff, which provides 10.5 pence per kilowatt hour of electricity generated, plus an additional 3.1 pence per kilowatt hour of electricity exported to the grid. BlueGen customers are also eligible to receive a feed in tariff in Germany and The Netherlands.

BlueGen uses ceramic fuel cells to turn natural gas into electricity and heat for hot water, with each unit capable of producing more than three times the electricity needed to power the average UK home.(1) Surplus electricity can be sold back to the grid.

________________________________

(1) Source: Medium UK household power consumption is 3,300 kWh/year per Ofgem Factsheet 96 18.01.11

   Integrated micro combined heat and power   (power + hot water + home heating) 

CFCL and Ideal are also developing products which provide power, hot water and home heating. CFCL and Ideal have built two prototype units for testing during the 2011/12 heating season.

This completes the development work under the Product Development Agreement signed with E.ON in 2009.

CFCL and E.ON are continuing to work together to develop a range of product configurations for different UK market segments and customer requirements. Once the Product Development Agreement is completed during 2012 the next stage in the parties' collaboration is to negotiate and sign a Product Supply Agreement for commercial products. This is subject to the products performing as expected and to the parties agreeing on the material terms for a commercial product, such as product specification and warranties, pricing, firm order volumes and delivery schedule.

Under the JTI project, Ideal and CFCL will develop up to 60 integrated units, to be installed in homes in the United Kingdom, Benelux and Germany from late 2012. These integrated units will be manufactured by Ideal in the UK.

Unlike BlueGen, these integrated units provide home heating, and will be targeted at the market for replacement home boilers, which in the UK alone comprises 1.6 million(2) units per year.

________________________________

(2) Source: Heating & Hot Water Industry Council Market Updates 2010 - 2011

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

"Our close working relationship with E.ON continues to strengthen as evidenced by this new order and we continue to discuss new ways of broadening our collaboration together. Ceramic Fuel Cells is right at the forefront in the development of high efficiency fuel cell microgeneration and its integration into today's homes."

Dr Chris Horne from E.ON

"These agreements with Ideal Boilers, CFCL and HOMA Software reflect our ongoing relationship to develop fuel cell based products for the retrofit and new build markets. We are now pleased to commit funding and resources at this critical point in the technology's commercialisation. The additional help of the FCH-JTI funding to extend our field demonstrations into the EU, and optimise the component and supply chain is a significant step in delivering commercial products, 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."

For further information please contact:

  Ceramic Fuel Cells  Andrew Neilson                   Tel: +61 419 950 771                                   Email: investor@cfcl.com.au    Nomura Code Securities (AIM      Tel: +44 (0) 207 776   Nomad)                           1200  Juliet Thompson, Chris Golden    Australia Media enquiries  Richard Allen, Oxygen Financial  Tel: +613 9915 6341   Public Relations    UK Media enquiries               Tel: +44 (0) 7786 116   Mark Way                         991                                    Email: Mark.W@harvardamerica.com  German Media enquiries           Tel: +49 (0) 69 9218                                    7454  Alex Seiler, Hering Schuppener   Email : aseiler@heringschuppener.com   Consulting     

Ceramic Fuel Cells Limited (CFCL) is providing solutions using nanotechnology which meets these efficiency and environmental goals

Australian Nanotechnology Alliance

Nanotechnology at work

Nanotechnology is an emerging scientific field creating materials, devices, and systems at the molecular level. By being able to work at this ultra-small scale, nanotechnology is being used to deliver innovations in industries including clean energy, environment, health and personal care, electronics, transport, construction, telecommunications, manufacturing and mining.

Ceramic Fuel Cells Limited

Eco-friendly power generation

Demand for energy across the globe is forecast to double from 2002 levels by 2025. Yet existing supplies may not cope with this demand, and significant investment is needed in new energy generation that also meets higher efficiency and environmental standards. Ceramic Fuel Cells Limited (CFCL) is providing solutions using nanotechnology which meets these efficiency and environmental goals.

A fuel cell is an efficient generator of Direct Current (DC) electricity from hydrogen rich fuels through an electrochemical reaction. Fuel cells differ from batteries since they cannot store electrical energy, so do not ‘run flat’ or need to be recharged. Fuel cells can continuously generate electricity so long as they have a supply of fuel and air.

CFCL’s solid oxide fuel cell (SOFC) technology produces electricity and heat through an electrochemical process using an electrolyte, a cathode and an anode. The cells have electrochemical layers on the nanometre scale, and use natural gas, and in the future liquid petroleum gas or ethanol, as fuel to generate the chemical reaction and produce low-emission electricity. The nanometre layered structure allows for operation at up to 780 degrees Celsius, with a much higher power density compared to electrolyte supported fuel cells, as well as a planar design better suited for high volume mass production of the fuel cells using ceramic manufacturing technology that is in use today. The nanostructured planar design also allows more options when the fuel cells are stacked together, allowing for flexible product options and smaller package sizes, which are best suited for domestic applications.

The fuel cells are very compact and modular, and can be used for a variety of applications where larger scale electricity generators cannot, such as the family home. Currently in Australia, electricity generated by a coal fired power station is typically delivered to a family home through traditional transmission networks with less than 30% efficiency. In contrast, using CFCL’s fuel cell technology, electricity is generated with an efficiency of up to 60% at the point of use. Additionally, the household can use the heat from the fuel cell for domestic hot water and/or space heating, which increases the total efficiency from the fuel cell.

Right now, fuel cells are seen as one of the cleanest and most efficient methods of generating electricity, and it was the use of nanotechnology which enabled this.

ABOUT CFCL

CFCL is a world leader in developing solid oxide fuel cell (SOFC) technology to provide reliable, energy efficient, high quality, and low-emission electricity from widely available natural gas and renewable fuels.

CONTACT CFCL

t: + 61 (0)3 9554 2300

e: enquiries@cfcl.com.au

w: cfcl.com.au

p: 170 Browns Road

Noble Park, VIC 3174

Australia

nanotechnology.org.au