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."
