Ceramic Fuel Cells Limited BlueGen receives substantial state subsidy in NRW

RNS Number : 6652Z

Ceramic Fuel Cells Limited

11 March 2013

PRESS RELEASE

BlueGEN technology receives substantial state subsidy

North Rhine-Westphalia pays 45% - 65% of fundable purchase price

Heinsberg, 11 March 2013. Ceramic Fuel Cells Limited ("CFCL") (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, has been informed that the state of North Rhine-Westfalia (NRW) has started to implement its recently announced mCHP subsidy policy. Government authorities in Arnsberg/NRW have last week approved the first application for financial assistance. Depending on the size of the business applicant, the regional government of Germany's most populous state is set to promote the BlueGEN technology by subsidising each generator with between 45% and 65% of its fundable purchase price. The applicant, a local bakery, was granted an amount of 13,000 Euros for the purchase of one BlueGEN unit, which equals 65% of the fundable investment costs.

Bob Kennett, CEO of Ceramic Fuel Cells Limited, says: "The state of North Rhine-Westphalia has long been a strong supporter of our technology. We are delighted that this support has now been converted into a clear and substantial financial subsidy. The approved funding level is extremely important in supporting the ongoing marketing and distribution of BlueGEN; we expect this programme to drive a significant increase in demand for our product over the coming months and years. And lastly but most importantly, our first subsidised customer in NRW, will be able to halve his running electricity costs."

Following this first approval, BlueGEN generators are now officially part of the 250 million Euro CHP incentive programme 'progress.nrw', which is designed to accelerate the market breakthrough of highly efficient CHP systems. The CHP act aims to increase the proportion of electricity generated by CHP plants to 25 percent of the state's total production by 2020. A study mandated by the NRW Ministry for Climate Protection and carried out by three renowned German research institutes, the Bremen Energy Institute, the ISI and the IREES, calculated a total CHP potential in NRW of 75 terawatt hours per year. By 2020, NRW's government wantssmall and medium-sized enterprises to contribute a large part of the CHP potential.

CFCL's fuel cell technology perfectly meets the objectives of the state's government, as BlueGEN units are specifically designed for decentralized, on-site use in small and medium-sized enterprises. Providing up to 13,000 kWh a year, BlueGEN can cut running electricity costs by up to 50%. Due to high and rising electricity prices in Germany, one in four companies is considering generating electricity themselves, the latest survey of the German Chamber of Commerce says. With this new subsidy, BlueGEN units have become an attractive investment proposition for more than 600,000 small and medium-sized enterprises in NRW.

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Largest German State launches subsidy program for small power and heating products

RNS Number : 7162P

Ceramic Fuel Cells Limited

29 October 2012

Monday 29 October 2012

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, welcomes the launch of a subsidy scheme for micro combined heat and power products (mCHP) by the German State of North-Rhine Westphalia.

Under the new scheme the North-Rhine Westphalia Government will pay a capital subsidy to commercial customers and Energy Service Companies who install highly efficient mCHP products of less than 50 kilowatts, like Ceramic Fuel Cells' BlueGen and integrated mCHP products. Local energy utilities (Stadtwerke) are also eligible for funding under certain conditions.

Different levels of subsidy are available for various categories of mCHP products and related projects, depending on their level of efficiency, Innovation and carbon saving potential.

Based on discussions with the relevant Government bodies, the Company believes that its BlueGen and integrated mCHP products will be classed as highly innovative cogeneration systems, and therefore eligible for a subsidy of 45 percent of the extra cost of the product compared to a conventional reference product. The subsidy is increased by another 10 to 20 percent for small and medium sized businesses.

While the precise subsidy amount will be determined by the relevant Government department, and may vary between customers, the Company believes its products are likely to be eligible for an initial subsidy of approximately 10,000 Euros per unit.

The subsidy program begins immediately and is due to run until the end of 2017. The subsidy is part of a North-Rhine Westphalia Government funding program of up to EUR 250 million to support CHP deployment. The North-Rhine Westphalia subsidy is in addition to the German Federal Government subsidy of 1,650 Euros per BlueGen, plus the Federal Government feed-in tariff for mCHP products.

North-Rhine Westphalia is the most populous State in Germany, with a population of approximately 18 million people. Ceramic Fuel Cells employs approximately 30 staff at its volume manufacturing plant in Heinsberg, in North-Rhine Westphalia.

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

"We welcome the North-Rhine Westphalia Government's subsidy program, which will help our breakthrough products become cost-competitive with older and less efficient existing products, and deliver real value to our commercial customers.

We expect this program to give a boost to our sales in the coming year, which in turn will drive higher production levels in our factory in Heinsberg and substantially lower product costs.

BlueGen is one of the few fuel cell mCHP products available in the market today, with almost 100 BlueGen and mCHP units installed and operating in Germany, delivering clean power and hot water for our customers and helping Germany make the transition to a clean energy future."

BlueGen units use ceramic fuel cells to turn natural gas into electricity - as well as heat for hot water - for homes, schools, offices and small commercial buildings. The peak electrical efficiency of BlueGen is up to 60 percent, far higher than any other small scale generating technology in the world. With the added benefit of heat, total efficiency is up to 85 percent.

Earlier this month Ceramic Fuel Cells announced that 25 of its BlueGen units are being used to power Germany's first commercial virtual fuel cell power plant. The virtual power plant was officially opened by Mr Peter Altmaier, Germany's Federal Minister for the Environment, Mr Johannes Remmel, Minister for the Environment in the state of North Rhine-Westphalia, together with Mr Bernd Wilmert, Chairman of the Board of the municipal utility network Trianel, and Sven Becker, CEO of Trianel. The Trianel network will offer BlueGen units to end customers as part of its EnergieBlock(R) micro combined heat and power offering.

Speaking at the official opening event, Mr Remmel, North Rhine-Westphalia's Minister for the Environment, said:

"North Rhine-Westphalia is the state for energies of the future and needs more utilities of the future for an accelerated energy transition. Combined heat and power [CHP] should play an important role in our federal state. Therefore, the state of North Rhine-Westphalia is planning a support programme for CHP of 250 million Euros. Our goal is to increase the CHP share of electricity generation to more than 25 percent".

Ceramic Fuel Cells and its local distributor sanevo blue energy are marketing BlueGen units to small commercial, Government and utility customers throughout Germany.