UK Market Update

Thursday 29 November 2012

Increased UK feed in tariff comes into force from 1st December 2012

Continuing sales and installations in UK

Ceramic Fuel Cells Limited (AIM / ASX: CFU) a leading developer of generators which use fuel cell technology to convert natural gas into electricity and heat for homes and other buildings, is pleased to provide an update on its progress in the United Kingdom market.

Increasing Government support

Micro combined heat and power (microCHP) units accredited under the UK's Microgeneration Certification Scheme (MCS) and commissioned on or after 1st December 2012 will be eligible for an increased feed in tariff of 12.5p per kilowatt-hour (kWh) of electricity generated plus an additional 4.5p per kWh for electricity not used on site and exported to the grid. The increased tariff applies to the first 30,000 microCHP appliances installed. BlueGen is currently the only fuel cell based microCHP appliance accredited under the MCS and hence the only fuel cell eligible for the UK feed in tariff.

Social housing

In the UK Ceramic Fuel Cells has taken a highly targeted approach to key market sectors. One of these key market sectors is social housing where the benefits of BlueGen generation are particularly strong. Ceramic Fuel Cells has recently sold 5 BlueGens into exemplar installations in this market sector, which will be commissioned during December. Two of these installations have been supported by National Grid Affordable Warmth Solutions, including one at The Madeley Centre near Crewe.

Jeremy Nesbitt, Managing Director, National Grid Affordable Warmth Solutions, commenting on The Madeley Centre installation, said: "we are excited to be involved in this ground breaking initiative. We are keen to promote innovative technologies that help improve energy efficiency and reduce energy bills for vulnerable homes and communities. We are committed to supporting a number of BlueGen installations that will be independently evaluated by UK's leading Fuel Poverty charity, National Energy Action."

In parallel with the social housing exemplar installations, Ceramic Fuel Cells continues to work with Energy Services Company (ESCo) iPower to bring the benefits of BlueGen to the social housing sector under a fully funded ESCo arrangement. Pre-registration for this scheme is now open to all registered social landlords.

Other installations in the last three months include the UK installation of a BlueGen for Ceramic Fuel Cells' chairman, Alasdair Locke.

Exhibition

Ceramic Fuel Cells exhibited at the Retro Expo conference at the NEC from 30 October to 1 November 2012, highlighting the benefits of BlueGen installations in the retrofit market. BlueGen's role in the Really Smart House project (www.reallysmarthouse.com) was presented by architects firm, The Facility.

BlueGen units use ceramic fuel cells to turn natural gas into electricity - as well as heat for hot water - for homes, schools, offices and small commercial buildings. Each BlueGen unit can save up to four tonnes of carbon per year in low carbon homes in the UK when running of natural gas and around twice this amount when using directed biogas purchased over the mains gas grid. The peak electrical efficiency of BlueGen is up to 60 percent, far higher than any other small scale generating technology in the world. With the added benefit of heat, total efficiency is up to 85 percent.

Ceramic Fuel Cells is delivering BlueGen units to customers across the UK through five specialised installation, sales and service partners:

·; Be Green Systems for London and the South East;

·; Ace Energy for the South Coast and South West;

·; Green Buy Energy for Yorkshire and the North Midlands;

·; Richard Irvin for Scotland; and

·; World Heat and Power for the North West and North Wales.

Ceramic Fuel Cells continues to raise its profile in the UK capital markets.

About Ceramic Fuel Cells Limited:

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

The company is listed on the London Stock Exchange AIM market and the Australian Securities Exchange (code CFU).

www.cfcl.com.au