MVS Distribution Agreement

Acta S.p.A.

("Acta" or "the Company")

Acta and MVS Energy Solutions sign Distribution Agreement

for India's telecom back-up power market

Acta S.p.A. (AIM: ACTA), the clean energy products company, has signed a Distribution Agreement with MVS Energy Solutions, the recently established new business division of MVS Engineering Ltd ("MVS"), India's largest supplier of industrial gas equipment and solutions, for the distribution of Acta's electrolysers, in India.

This follows on from the announcement Acta made on 19 December 2012, that it had signed a Letter of Intent with MVS Engineering to distribute Acta's electrolysers in India.

MVS specialises in on-site gas solutions for Nitrogen, Oxygen and Hydrogen. They have supplied gas generation equipment to over 56 countries worldwide and have supplied air and gas equipment to more than 60% of the top 1,000 companies in India. 

MVS Energy Solutions was formed to address the growing need in the Indian market for back-up power solutions, especially in the telecom market where there are 65,000 base stations being installed annually (19% of which are with renewables or hybrid). The objective of the partnership is to allow the introduction of on-grid and off-grid integrated fuel cell back-up power solution based on on-site hydrogen generation. 

MVS predicts 2013 will see sales of Acta's electrolysers in excess of 100 units and the forecast for 2014 is that the interest and adoption of this technology will increase substantially from this level.

MVS will integrate Acta's largest electrolyser, the EL1000, with a fuel cell to produce a back-up power solution for the telecommunication market. This system will be demonstrated on the premises of MVS's headquarters in New Delhi and potential clients, government officials and member of the telecommunication industry will be invited to come and see the system in full operation.

Paolo Bert, Chief Executive of Acta commented: "Acta is committed in its mission to introduce cost-effective on-site hydrogen solutions for back-up power, renewable energy and other fuel cell applications. We are pleased to be working with MVS Energy Solutions and to be able to benefit from their technical credibility, production experience and market reach."

Rajeev Bhalla, Director of Hydrogen and Energy Solutions of MVS Energy Solutions commented:"Over the next 10 years hydrogen will become a considerable alternate fuel. In the telecoms market alone, hydrogen as an alternative fuel should have a 30% market share, creating a demand of 350,000 1.0 Nm3/Hr H2 electrolyzer devices. MVS Energy Solutions is delighted to bring Acta's product line to the Indian telecom sector's backup power market as there is tremendous market potential in this space for affordable hydrogen generators and fuel cells. With a demo site coming up at our premises, we will be the first and only hydrogen generator supplier in India to have credibly demonstrated what we are intending to sell in the market."

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About Acta S.p.A.

Acta S.p.A. is a developer and manufacturer of a range of clean energy products. Its product line includes market-leading compact hydrogen generators (electrolysers) which produce pure, dry and compressed hydrogen in a way that is easy-to-use and completely safe, and the Company is committed to integrating its award-winning electrolysers with renewable energy sources.

Acta's cost-competitive electrolysers are based on its proprietary, inexpensive environmental catalyst and hydrogen conversion technologies. These products help overcome the barriers to the adoption of fuel cells, most notably the lack of a local hydrogen infrastructure. They are also applicable in non-fuel cell hydrogen and oxygen applications, including oxy-hydrogen gas welding systems, where the Company is generating significant commercial interest.

Acta's low-cost hydrogen generators represent a unique breakthrough in electrolyser technology. They can operate using mains power or intermittent renewable energy, and produce clean, dry hydrogen already at pressure for use in fuel cell and other applications. This unique combination of features avoids the system complexity and energy cost of further cleaning, drying and compression of the hydrogen, resulting in a simple, compact, low-cost and highly efficient system that is ideally suited for energy conversion and storage applications. In such applications, which include battery replacement and renewable energy storage, low cost and high efficiency are critical to commercial viability, while hydrogen compression is essential for the energy density of the system. No other water electrolyser currently on the market offers this combination of benefits.

Acta is focusing on delivering its products to markets with high volume demand for high-value environmental solutions (transport, back-up power, energy and leisure). It is accelerating the commercialisation of its products via partnerships with original equipment manufacturers (OEMs), distributors, and agents in these sectors, and intends to drive down production costs at high volume via contract manufacturing.

Acta S.p.A. is based near Pisa, Italy, and was admitted to trading on AIM in October 2005.

www.actagroup.it