E.ON UK Orders Additional CFCL Products

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

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.

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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 million2 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:

About Ceramic Fuel Cells Limited:

Ceramic Fuel Cells Limited is a world leader in developing fuel cell technology to generate highly efficient and low-emission electricity from widely available natural gas. Ceramic Fuel Cells is 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.

Ceramic Fuel Cells has also sold more than 300 BlueGen gas-to-electricity generators to major utilities and other foundation customers in Germany, the United Kingdom, Switzerland, The Netherlands, Italy, Japan, Australia and the USA.

Ceramic Fuel Cells recently won the 2010-11 DuPont Design for a Sustainable Future innovation award and the Microgeneration UK 2011 Technical Innovation Award. The company is listed on the London Stock Exchange AIM market and the Australian Securities Exchange (code CFU).

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More information is available at www.bluegen.info