ACTA.L Regulatory News (ACTA)

19 Jan 2006 07:01

Acta S.p.A.19 January 2006 19th January 2006 PRESS RELEASE Acta Trading and Technical Update Acta, the fuel cell technology enabler which recently listed on London'sAlternative Investment Market, announces an update on progress in both itscommercial and technical programmes ahead of entering its close period. Commercial progress on plan Customer interest in Acta's catalysts for portable fuel cells has been veryencouraging. Since Acta launched HYPERMEC in June, confidentiality agreementshave been signed with fifteen global fuel cell and consumer electronicscompanies, most of them leading players in their markets. Samples have alreadybeen despatched to most of them for evaluation. Acta is also in discussions withtwo manufacturers with regard to developing direct ethanol fuel cell stacks. Technical update The first technical milestone of the company is to optimise and launch HYPERMECfor direct ethanol fuel cells. In November 2005, Acta announced that the powerproduced by a HYPERMEC catalyst had doubled to over 55mW/cm2 at roomtemperature, which is a significant achievement towards commercialisation ofthis product. The product development team have since continued to make goodprogress in improving the manufacturing process for the electrodes and ionomersin order to enable customers to maximise the performance of the catalyst intheir products. Acta has also made excellent progress in the development of newproducts for launch into other applications and markets illustrated by theannouncement today that Acta has filed a patent for the electrolysis ofhydrogen. Further explanation of planned product launches for 2006 will be made at thetime of our preliminary results at the end of March. Financial update Cash flow for the year was in line with expectations and the business plan.Furthermore, a grant of €1.9m by the Lombardy government has now been finalisedand approved, the benefit of which will accrue over the next three financialyears. The grant has been awarded to Acta, through its 90% subsidiary Idealab,for the development of ethanol-powered fuel cells. Contact: Acta S.p.A:Toby Woolrych Tel: 020 7067 0700 Weber Shandwick Square Mile:Melissa Rowling / Nick Dibden / Dominic Furlonge Tel: 020 7067 0700 Notes to editors: The Fuel Cell and Hydrogen Generation Industries Fuel Cells. Fuel cells are electrochemical devices which generate electricity from a fuel (typically hydrogen or methanol in the past) and air producing just water and sometimes carbon dioxide as exhaust. Fuel cells can be used to replace power supplies for portable electronic devices as well as the internal combustion engine and power generators for domestic use. They are widely seen as a solutionto the power inefficiency of batteries, long term limitations in fossil fuel supply and to managing the problem of greenhouse gases. Major electronics andautomotive companies as well as governments are spending billions of dollars perannum to make fuel cells a reality in consumer markets. Portable fuel cells. Portable fuel cells are those designed to replace lithium-ion batteries for mobile phones, laptops and other portable electronic devices, all of which are increasingly hampered by the limitations of battery life. These fuel cells are generally not powered by hydrogen gas, which is restricted in use and hard to safely store and use, but by a hydrocarbon liquid, typically methanol. Direct Alcohol Fuel Cells (DAFC). These are fuel cells that have been powered by methanol in the past. Methanol is toxic and is usually a fossil fuel derivative. Ethanol, which may replace itthanks to Acta's new technology, is safe and practical to use. Ethanol is also made from renewable sources, making the fuel cell more environmentally friendly. Hydrogen generation. There is a large existing industrial market for hydrogen generation. The launch of significant numbers of hydrogen-powered fuel cells will also drive growth in this market. Hydrogen is now largely generated by the steam reforming of hydrocarbons from fossil fuels: a process which generates greenhouse gas CO2 asan emission. The alternative method of producing hydrogen by the electrolysis ofwater is relatively inefficient and expensive. Acta has products in late stageof development which may have a significant impact on the efficiency and economics of this market. Barriers for fuel cell and electrolyser commercialisation. Fuel cells and electrolysers have made and continue to make great strides towardscommercialisation. Key remaining barriers are partly driven by the catalysts,which have to date contained costly and scarce platinum,: • preventing products from reaching their commercial cost targets • requiring fuel cells to use impractical methanol as a direct hydrocarbon fuel The Acta technology. Acta. Acta is an Anglo-Italian company which floated on AIM in October 2005. Acta hasrecently completed its manufacturing and research facility near Pisa in Italy andis now rolling out its HYPERMEC catalysts to the global market for evaluation. HYPERMEC Catalyst. Acta has developed a platinum-free catalyst called HYPERMEC. HYPERMEC is made from cheap and abundant materials, dramatically lowering the cost of industrialising fuel cells and electrolysers. HYPERMEC catalysts work withanionic exchange membranes which are significantly cheaper than the currentcationic membranes, further reducing the cost of the fuel cell or electrolysersystem. HYPERMEC also allows the use for the first time of a whole range ofhydrocarbon fuels, including ethanol. This information is provided by RNS The company news service from the London Stock Exchange