UK market update

Tuesday 9 October 2012

Ceramic Fuel Cells continued progress in UK market

BlueGen featured at Nextgen conference from Wednesday 10 October

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.

On Wednesday 10 October and Thursday 11 October Ceramic Fuel Cells will be presenting and exhibiting at the Nextgen conference at Stoneleigh Park in Warwickshire.

Ceramic Fuel Cells is exhibiting its BlueGen mCHP product jointly with iPower Energy Ltd, a UK social enterprise developing low carbon projects for the social housing market as an energy services company. iPower provides energy services to housing associations and their tenants to address fuel poverty by reducing energy bills, cut carbon emissions and making clean energy affordable to all. iPower and Ceramic Fuel Cells are working with Registered Social Landlords to deploy BlueGen units into iPower's social housing projects.

Mr Paddy Thompson, Ceramic Fuel Cells' General Manager of Business Development based in the UK, will be presenting on how BlueGen units can help address fuel poverty in the social housing market. He will also participate in a panel discussion on UK feed in tariffs. More information on the event is available at www.nextgenexpo.co.uk.

Ceramic Fuel Cells and iPower will also showcase BlueGen to registered social landlords and property owners in Scotland and North East England at an event hosted by iPower on 24 October at the Edinburgh Centre for Carbon Innovation. More information on the event is available at http://www.ipoweruk.com/index.php/news-a-views.

Ceramic Fuel Cells also presented at the Low Carbon Transport conference in Rotherham on 27 September. Mr Keith Joynes, Ceramic Fuel Cells' UK Sales Manager, presented a case study on how BlueGen units can be used as low emission recharging stations for electric vehicles. More information on the conference is available at www.co2t.co.uk/conference, and the BlueGen case study is available at http://www.bluegen.info/EV_Charging/.

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. 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.

BlueGen is the first and currently the only fuel cell product eligible for the UK feed-in tariff, which provides a payment to customers for power generated on-site and exported back to the power grid. From 1 December 2012, the feed-in tariff increases from a total of 14.2 pence per kilowatt hour to a total of 17 pence per kilowatt hour (subject to the deeming rules for the amount of electricity exported).

Ceramic Fuel Cells is focusing on the social housing, new build and commercial markets with BlueGen units installed at Epsom with Crest Nicholson as a showcase for the new build market and more recently with Housing Solutions in Maidenhead as a showcase for the social housing market.

As previously announced, Crest Nicholson, one of the UK's leading house builders, has installed a BlueGen gas-to-electricity generator in a low carbon four bedroom family home in its Noble Park development on the outskirts of Epsom, Surrey. This is the UK's first installation of a microgeneration certificate scheme (MCS) accredited micro power and heat fuel cell in a new build home, providing power, heating and hot water for the home.

Crest Nicholson has now sold the home to a family who will be moving into the home and enjoying the benefits of the BlueGen unit from later this month. The case study is available at http://www.bluegen.info/crest-nicholson-total-integration.

Ceramic Fuel Cells is delivering BlueGen units to customers across the UK through specialised installation, sales and service partners. To date these comprise: :

·; 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 Sustainable Energy for Scotland; and

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

Ceramic Fuel Cells is also continuing to work with E.ON on the deployment of its BlueGen and integrated mCHP products, both as part of the previously announced JTI programme and to promote to some of E.ON's commercial customers. E.ON is making good progress deploying the 45 BlueGen units previously delivered to them.

Ceramic Fuel Cells is also continuing to raise its profile in the UK capital markets.

Ceramic Fuel Cells was one of the companies featured at the "Investing in Fuel Cells" event on 27 September, organised by Cleantech Investor and Nomura Code in partnership with the Technology Strategy Board, a UK Government body that promotes innovations and provides grant funding for strategic projects like combined heat and power. Our Chief Technology Officer Dr Karl Föger presented at the event. More information on the event, and links to videos of the presentations, are available at http://www.cleantechinvestor.com/events/en/investing-in-fuel-cells.html 

Finally, as previously announced Mr Alasdair Locke, based in London, has been appointed as a Non-Executive Director and proposed Chairman of the Company. The Board intends to appoint Mr Locke as Chairman at the Company's Annual General Meeting on Monday 29 October 2012.

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