28th Apr 2009 08:16
28 April 2009
Ceramic Fuel Cells Limited
Quarterly Update and Cashflow Report
Ceramic Fuel Cells Limited (AIM / ASX: CFU) a leading developer of high efficiency and low emission power products for homes, today released its quarterly cashflow report for the period ended 31 March 2009.
The full quarterly cashflow report is available at www.cfcl.com.au.
Operational Review
In February the Company announced that it had achieved electrical efficiency of 60% from one of its natural gas powered fuel-cell home appliances while exporting electricity to the grid. Because the unit will be installed in homes, there are no electricity transmission or distribution losses, making this the highest electrical efficiency ever achieved, worldwide, from any technology - including other fuel cell technologies - that converts hydrocarbon fuels into electricity.
The Company believes that achieving the industry's highest electrical efficiency is a compelling competitive advantage in the very large emerging market for products that generate electricity in homes and other buildings. The very high electrical efficiency of the Company's technology also opens up potential new products such as a 'generator' product for homes.
During the quarter the Company also continued to develop micro combined heat and power products (mCHP) with its partners in Europe and Japan.
In February the Company announced that it had extended its exclusive agreement with leading utility E.ON to further develop and deploy fuel cell mCHP products in Great Britain. E.ON and CFCL will collaborate on a joint development project to commercialise mCHP units designed specifically for the Great Britain market. The commercialisation project is currently scheduled to run from 2009 to 2012 in a number of stages subject to performance criteria, with the Great Britain market launch expected to follow thereafter. Subject to CFCL's achievement of agreed price and performance targets, E.ON and CFCL have agreed a potential future order profile, which would secure E.ON's exclusive distribution rights for CFCL micro CHP units within Great Britain. A minimum order of 100,000 units over six years from 2012 would be required for E.ON to continue to retain exclusivity.
During the quarter the Company and its utility partner for the Benelux market, Nuon, completed a joint review of the project to develop mCHP products for that market. In February Nuon announced that it had agreed to a takeover by Swedish utility Vattenfall. During the project a semi-integrated mCHP unit was installed in September 2008. Nuon confirmed that the mCHP unit successfully met or exceeded all technical targets set by the partners, including power export, electrical efficiency, and lifetime, however in order to keep focus in its current product development portfolio, Nuon decided not to continue with the development of a fuel cell based mCHP product. The Company is in discussions with a number of other utilities operating in the Benelux region to undertake a similar development of a commercial product.
As previously announced, during the quarter the Company slowed the construction activity at its manufacturing plant in Germany and deferred the plant opening date from June to October 2009. Construction activity was increased towards the end of the quarter in line with the revised project timeline.
Financial Review
Net operating cash outflow for the March quarter was A$3.4m (£1.7m). This was A$1.0m (£0.5m) lower than last quarter reflecting a reduction in expenditure of A$1.5m (£0.7m), partially offset by a reduction in receipts of A$0.5m (£0.2m).
During the quarter cash outflow from investing activities was A$1.7m (£0.8m). This largely related to payments arising from building the Company's manufacturing plant in Germany.
Cash inflows from financing activities during the quarter totalled A$1.9m (£0.9m), including the previously announced sale of one of the Company's investments.
Cash at the end of the quarter was A$1.4m (£0.7m). In April the Company successfully closed a series of equity fundraisings, which together raised approximately A$33.5m (£15.5m) before costs.
After the end of the quarter the Company has completed a review of its organisational structure. As a result of that review the Company is reducing its total headcount from 106 staff to approximately 88 staff.
For further information please contact:
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Ceramic Fuel Cells |
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Andrew Neilson |
Tel: +613 9554 2300 |
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Email: [email protected] |
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Nomura Code Securities |
Tel: +44 (0) 207 776 1200 |
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Juliet Thompson, Chris Golden |
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About Ceramic Fuel Cells Limited:
Ceramic Fuel Cells Limited is a world leader in developing solid oxide fuel cell technology to provide highly efficient and low-emission electricity from widely available natural gas and renewable fuels. The company is developing micro combined heat and power and distributed generation units that generate electricity and heat for homes. Ceramic Fuel Cells is developing products with leading appliance partners and utility customers in Germany, France, the United Kingdom and Japan. The company is listed on the London Stock Exchange AIM market and the Australian Securities Exchange (code CFU).
www.cfcl.com.au
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