ACTA.L Regulatory News (ACTA)

27 Jul 2006 07:01

Acta S.p.A.27 July 2006 27 July 2006 Acta S.p.A. ("Acta" or the "Company") Interim Pre-Close Statement - Acta heading towards commercialisation Acta, the catalyst manufacturer for fuel cells and other applications announcesan update on progress in both its commercial and technical programmes ahead ofentering its close period. Commercial progress Acta continues to make good progress with both the number of customers and itslevel of engagement with them. Customers have tested cells with Acta's HYPERMECcatalyst and have proved HYPERMEC's unique performance capabilities. Recentcustomer visits both in Asia and to Acta's Italian R&D facility have confirmedhigh levels of customer interest and commitment to further trials. The Companyhas consequently entered into negotiations with Sumitomo Corporation, its Asiandistributor, to broaden and deepen the terms of their partnership. Technical progress Acta has made excellent progress technically, hitting a number of keymilestones. In the first half of the year, Acta demonstrated HYPERMEC'sdurability with different fuels and also HYPERMEC's unique ability to fullyconvert ethanol fuel for peak fuel efficiency. The Company is now also focusingon optimizing the application technology for HYPERMEC, which will furtherenhance both power and durability. Recruitment of highly experienced fuel cellscientists continues, ensuring that the Company maximizes its capability andintellectual property. Supporting this is an investment program in analyticaland quality control equipment. Financial Acta's cost base and cash utilization remain well controlled and withinexpectations. The Company has recruited a highly experienced Chief FinancialOfficer ( Paul Barritt) and has commissioned a new accounting system to managethe Company through its rapid growth. Much of the investment in new equipmenthas been financed by the Company's two existing government grants. Strategy and Outlook Acta anticipates further rapid advances both commercially and technically in thesecond half. It will announce further progress and its future milestones for thefuel cell market with its interim results in September as well as outliningprogress in identifying important new markets for HYPERMEC. Paolo Bert, CEO, commented: "Our growing team has delivered great progress inalmost every area in the first half of the year. We are very excited that thesecond half will see significant technical and commercial advances for both fuelcells and other applications." - ends- Contact:Acta S.p.A:Toby Woolrych Tel: 020 7067 0700 Weber Shandwick Square Mile:Nick Dibden Tel: 020 7067 0700 Notes to editors: The Fuel Cell Industry 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 and automotive companies as well as governments are spending billions of dollars per annum 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 it thanks 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 as the carbon dioxide produced in use comes from the existing carbon cycle and does not count as a greenhouse gas. Fuel cells with Acta catalysts can also use ethylene glycol and glycerol, which are both safe and have excellent technical advantages over methanol. Barriers for fuel cell commercialisation. Fuel cells have made and continue to make great strides towards commercialisation.Key remaining barriers are partly driven by the catalysts, which have to datecontained costly and scarce platinum: • preventing products from reaching their commercial cost targets • requiring fuel cells to use impractical methanol as a direct hydrocarbon fuel Acta's technology. Acta. Acta is an Anglo-Italian company which floated on AIM in October 2005. Acta has completed its manufacturing and research facility near Pisa in Italy and is 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 with anionexchange membranes which are significantly cheaper than the current cationic membranes, further reducing the cost of the fuel cell or electrolyser system. HYPERMEC also allows the use for the first time of a whole range of hydrocarbonfuels, including ethanol. New applications Acta announced in March that it intends to exploit opportunities for HYPERMEC inother markets, including power generation markets and process catalysis. Goodprogress is being made and further announcements can be expected in the secondhalf to explain both the potential applications and Acta's strategy fordeveloping them. This information is provided by RNS The company news service from the London Stock Exchange