BlueGen operating at Aurora for VicUrban

26 May 2010

BLUEGEN GAS-TO-ELECTRICITY UNIT OPERATING

AT AURORA, ONE OF AUSTRALIA'S LARGEST SUSTAINABLE COMMUNITIES

Ceramic Fuel Cells Limited (AIM/ASX: CFU) - a leading developer of high efficiency and low emission electricity generation units for homes and other buildings - has begun generating low emission electricity from its BlueGen unit installed at Aurora, in Epping North, Victoria, developed by VicUrban, the Victoria Government's sustainable urban land development agency.

The BlueGen unit at Aurora was powered up on 29 April and is performing as expected:

§ Current electrical efficiency of 58%, compared to about 25% efficiency for coal-derived electricity.

§ Constant output of 1.5 kilowatts of electricity.

§ Cumulative power exported to the grid of 876 kilowatt hours of electricity - equivalent to approximately 12,500 kilowatt hours of electricity over the course of a year, which is about twice the amount used by the average home in Melbourne.

§ Cumulative carbon dioxide savings compared to the Victorian grid of 823 kilograms - equivalent to 12 tonnes over the course of a year.1 This is equal to 240,000 "black balloons". These carbon savings would effectively make the average Victorian home 'carbon neutral': the average Victorian household produces around 10.7 tonnes (213,000 black balloons) of greenhouse gas emissions each year from energy used in the home.2)

§ Creating enough heat for 200 litres of hot water each day.

§ Origin Energy is buying the power that BlueGen is exporting to the grid.

* NOTE. The unit is available for viewing on site. Please see bottom of announcement for details.

BlueGen units generate electricity in the home at more than double the efficiency of current Victorian coal-fired electricity generators, cutting energy bills and reducing carbon emissions by up to two-thirds.

About the size of a dishwasher, BlueGen uses fuel cell technology to convert natural gas into electricity. Over a year, each BlueGen can produce twice the electricity needed to power an average Victorian home - the excess power can be exported to the power grid. BlueGen also produces enough heat to meet the average home's daily needs for hot water.

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Ceramic Fuel Cells has achieved electrical efficiency of 60 percent, far higher than any other technology in the rapidly expanding global market for small scale power and heating generators. When heat is recovered from the electricity production process, total efficiency is up to 85 percent - more than twice as efficient as the average among current Australian power stations.

Ceramic Fuel Cells is continuing to build its order book for BlueGen units from major utilities and other foundation customers in Germany, the United Kingdom, Switzerland, The Netherlands, Japan and Australia.

The Victorian Government recently placed a conditional order for thirty BlueGen units to be installed in social housing units in Melbourne and regional Victoria.

Using the same fuel cell technology, Ceramic Fuel Cells is also developing fully integrated power and heating products with leading energy companies E.ON UK in the United Kingdom, GdF Suez in France and EWE in Germany.

For further information please contact:

About Ceramic Fuel Cells Limited

Ceramic Fuel Cells Limited is a world leader in developing fuel cell technology to provide highly efficient and low-emission electricity from widely available natural gas. The Company is developing micro combined heat and power and distributed generation units that generate electricity and heat for homes and other buildings. Ceramic Fuel Cells is demonstrating products with leading appliance partners and utility customers in Germany, France, the United Kingdom and Japan. In 2009 the company launched its BlueGen gas-to-electricity product.

Ceramic Fuel Cells is headquartered in Melbourne, and has operations in the UK and Germany. The Company is listed on the London Stock Exchange AIM market and the Australian Securities Exchange (code CFU).

www.cfcl.com.au