17th Jan 2008 07:01
Acta S.p.A.17 January 2008 17 January 2008 Acta S.p.A. Trading Update Acta, the AIM-listed catalyst developer, today provides an update on itssignificant commercial and technological progress prior to entering its fullyear close period. The preliminary results for the year ending 31 December 2007will be announced on Wednesday 19 March 2008. Financial Review Revenues in 2007 have been over eight times higher than in 2006, in line withaverage market forecasts. Second half revenues were higher than the first half,reflecting continuing forward commercial momentum. Operating costs and theconsequent operating loss were better than expected. The receipt of £5.7m net ofassociated costs from the strategically important investment announced on 12July 2007 is expected to provide cash resources until 2010 at currentutilisation rates. Commercial and Operational Progress In November, Acta announced its first revenue earning development contract withone of the world's largest OEMs for the development of hydrogen generation andfuel cell catalysts. This contract is now underway and progressing according toplan. Acta continued to make excellent commercial progress in 2007 in all of itsthree main and increasingly important markets of hydrogen generation, fuel cellsand waste treatment catalysis. Good commercial progress was made with a numberof new customers and commercial negotiations are underway for further jointdevelopment agreements and collaborations. The "Power Profit" ammoniaelectrolyser demonstrator was launched in Europe and the US in November and thefirst order has been placed. Bi and quad-fuel cells for low power use were alsodeveloped and sold in December to an Asian customer. All operational scale-uptargets were achieved on the pilot plant. We are well in line with our plan totake Acta forward as a commercially viable business and remain confident thatour technology will be highly sought after in meeting global power requirementsin the years ahead. Technical Progress Acta achieved all of its 2007 milestones. The company's product portfolio hasexpanded to include ammonia electrolysis, ammonia reforming, ethanol reforming,and oxygen reduction catalysts for zinc air batteries. The company hasadditionally launched improved catalysts for its core fuel cell applications.Important associated IPR has been developed, and patents filed, in relation tothe Alkaline Membrane Fuel Cell and Alkaline Membrane Electrolyser architectureswhich are used with Acta's catalysts. Particular progress has been made in thedevelopment of low cost fuel cells for the potentially high volume low powerapplications. Paolo Bert, Chief Executive, commented: "Acta offers affordable solutions to the critical issues of high oil prices andcarbon dioxide emissions and we have made good progress across all applications,both technically and commercially in 2007 in line with our strategy. We havesuccessfully developed innovative commercial products across a wide range oftarget markets which ensures we are not dependent on any one market sector. Thedelivery of a strong performance in 2007 builds upon Acta's track record ofmeeting its financial, commercial and technical milestones." For further information, please contact: Acta S.p.A:Toby Woolrych, Chief Operating Officer Tel: +44 (0) 20 7360 4900 Smithfield Consultants:George Hudson / Katie Hunt / Will Henderson Tel: +44 (0) 20 7360 4900 Numis:David Poutney / Jag Mundi / Alex Ham Tel: +44 (0) 20 7260 1000 - Ends - Acta S.p.A. Acta develops and manufactures unique patented catalysts which have been launched initially to the renewable energy, automotive and portable electronics/battery markets. Acta's catalysts for ammonia decomposition into hydrogen offer the automotive industry access to a practical hydrogen carrier for the first time. The catalysts extract hydrogen from ammonia at room temperature, allowing ammonia, one of the most widely used chemicals in the world, to become a fuel for automotive use, solving the problem of hydrogen storage and transportation. Acta's catalyst range for alkaline membrane fuel cells allows fuel cell developers to stop using expensive platinum so that fuel cells can be made commercially viable for mass adoption, particularly in automotive and portable electronics applications. Adoption of HYPERMEC catalysts greatly reduces the cost of fuel cells and additionally allows for the first time the use of a widerange of safe liquid bio-fuels such as ethanol and glycerol. Simple passive alkaline membrane fuel cells can act as a high performance and environmentally friendly alternative to lead acid and alkaline batteries at a commercially acceptable price. Acta is also developing other commercial opportunities using its catalysts for waste treatment in the bio-fuel, polymer and other industries. Further information Sumitomo Partnership and Investment Acta has a long term marketing agreement with Sumitomo Corporation, a leadingJapanese trading corporation, which confers enormous competitive advantage toActa when doing business with major Asian customers. Acta announced in July a£4.6m investment by Sumitomo Corporation together with a further £1.15m placingwith UK institutions. At the same time Acta and Sumitomo entered into a newMarketing Agreement with the initial fixed term extended to ten years andprovisions contemplating collaboration in future ventures in the Asian region. Major development contract Acta announced in November that it has been awarded a major revenue earning 16month development contract by one of the world's largest OEMs, based in Asia,and Sumitomo Corporation. This contract will be worth €0.6m in the first fourmonths and is expected to offer a material cash inflow to Acta over the sixteenmonth period. The contract is for the development of its catalysts for fuelcells and for hydrogen generation from both ammonia and ethanol. Clearcommercial objectives have been identified and routes to market agreed. Ammonia electrolyser In January 2007 Acta announced that it had developed a novel catalyst whichcould produce hydrogen from ammonia at room temperature by electrolysis. Thiselectrolyser was demonstrated in February at the world's largest fuel cellexhibition in Tokyo and has subsequently been attracting attention atexhibitions world-wide. The ammonia electrolyser is a breakthrough becauseammonia is a very widely available and practical fuel for carbon-free motoring.Use of ammonia avoids the critical problems of hydrogen storage andtransportation currently faced by fuel cell developers. The new electrolyserreleases the hydrogen for use in a fuel cell using a fraction of the electricalinput and at a much lower temperature than any other process. The Actadevelopment therefore makes possible for the first time the on-board supply ofhydrogen for automotive fuel cells from a practical fuel source. A demonstrationunit, called the "Power Profit", has been launched in November 2007 and severalorders have been received. Alkaline Membrane Fuel Cells Acta has developed a range of platinum free catalysts to be used in a type offuel cell called Alkaline Membrane Fuel Cell (AMFC). The extensive use of scarceand expensive platinum severely restricts the commercial potential for fuelcells to be used in mass market applications. Acta has been a market leader indeveloping not just the catalysts but also systems expertise with AMFC. Acta isseeing increasing evidence that many leading companies and technical institutesin the field are now also seeing the commercial potential for AMFC, as evidencedby recent demonstrations by Daihatsu of AMFC technology. Disposable AMFC Acta's unique low cost catalysts allow fuel cell technology to be used asdisposable units to replace lead acid and alkaline batteries. However, they havemuch higher energy densities which means that they need be replaced less often.There are many industrial applications where the replacement and disposal ofbatteries is a major cost, offering Acta a significant commercial opportunity.The contents of an Acta AMFC with glycerol fuel will be much lessenvironmentally hazardous to dispose of once expended. Waste treatment Acta has developed catalysts that are highly active for bio-glycerol andammonia. Whilst these chemicals are potentially fuels of the future, they arealso unwanted waste products from existing industrial processes such asbio-diesel manufacture and polymer production. Acta is seeking early commercialsuccess for its catalysts by offering them for waste treatment solutions,thereby cleaning the environment today as well as offering green energy optionsfor the future. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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