ACTA.L Regulatory News (ACTA)

17 Jul 2008 07:00



17 July 2008

Acta S.p.A.

Business Update

Acta, the AIM-listed catalyst developer today provides the following business update prior to entering its interim close period. The results for the six months ended 30 June 2008 will be announced on 24 September 2008.

Commercial and Operational Progress

The macro economic climate for renewable energy and cleantech business continues to be very promising, with increasing global pressure for renewable energy solutions and carbon emission reductions. Acta's green energy catalysts can be affordably deployed across a wide range of critical clean energy technologies: renewable energy storage, carbon-free motoring, bio-fuels and waste treatment. 

The first half has seen encouraging progress in all Acta's markets. The development contract for its major Asian customer announced on 28 November 2007 delivered all milestones on time, and the catalysts that were developed under this contract have been translated through the production department and are being launched this month. Recent negotiations for the next contract phase have been very encouraging.

Commercial traction with other potential customers across Europe and the US has accelerated sharply and discussions are underway with a number of them with a view to deeper commercial collaboration in the second half. This includes significant progress in Acta's market applications of water electrolysis and ammonia waste treatment.

Acta is also seeing strong interest in alkaline fuel cells and is supplying catalysts to most of the major players in this space, and has signed collaboration agreements with Tokuyama Corporation and CMR Fuel Cells plc in order to increase activity in portable fuel cell applications.

Technical Progress

Technical progress continues to be made in all markets. Acta has developed improved catalysts for ammonia reforming, ammonia electrolysis, water electrolysis, and fuel cells - all of which have passed extensive production tests for reproducibility and scalability. Patents have additionally been filed for Acta's disposable fuel cell technology and an improved waterproof cathode has demonstrated greatly improved durability under load. 

Financial Progress

Development contract income in the first half contributed to a substantial increase in revenues compared to first half 2007. Costs have increased in line with expectations. The completion of the capital increase from Sumitomo Corporation has provided the company with cash into mid-2010.

Paolo Bert, Chief Executive, commented:

"Acta offers affordable solutions to the critical issues of high oil prices and carbon dioxide emissions and in 2008 to date we have made good progress across all applications, both technically and commercially. In line with our risk reduction strategy, we have successfully developed commercial products across a range of target markets, which ensures that we are not dependent on any one market sector, product or customer."

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Notes to Editors

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 is also developing other commercial opportunities using its catalysts for waste treatment in the bio-fuel, polymer and other industries.

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 Acta's HYPERMEC catalysts greatly reduces the cost of fuel cells and additionally allows for the first time the use of a wide range 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.

Sumitomo Partnership and Investment

Acta has a long term marketing agreement with Sumitomo Corporation, a leading Japanese trading corporation, which confers enormous competitive advantage to Acta when doing business with major Asian customers. Acta announced in July 2007 a £4.6m investment by Sumitomo Corporation together with a further £1.15m placing with UK institutions. At the same time Acta and Sumitomo entered into a new Marketing Agreement with an initial fixed term of ten years and provisions contemplating collaboration in future ventures in the Asian region.

Major development contract

Acta announced in November 2007 that it has been awarded a major development contract by one of the world's largest manufacturers, based in Asia, and Sumitomo Corporation. The contract is for the development of its catalysts for fuel cells and for hydrogen generation from both ammonia and ethanol. Clear commercial objectives have been identified and routes to market agreed. 

Ammonia electrolyser

In January 2007 Acta announced that it had developed a novel catalyst which could produce hydrogen from ammonia at room temperature by electrolysis. This electrolyser was demonstrated in February 2007 at the world's largest fuel cell exhibition in Tokyo and has subsequently been attracting attention at exhibitions world-wide. The ammonia electrolyser is a breakthrough because ammonia is a very widely available and practical fuel for carbon-free motoring. Use of ammonia avoids the critical problems of hydrogen storage and transportation currently faced by fuel cell developers. The new electrolyser releases the hydrogen for use in a fuel cell using a fraction of the electrical input and at a much lower temperature than any other process. The Acta development therefore makes possible for the first time the on-board supply of hydrogen for automotive fuel cells from a practical fuel source. A demonstration unit, called the "Power Profit", was launched in November 2007.

Waste treatment

Acta has developed catalysts that are highly active for bio-glycerol and ammonia. Whilst these chemicals are potentially fuels of the future, they are also unwanted waste products from existing industrial processes such as bio-diesel manufacture and polymer production. Acta is seeking early commercial success for its catalysts by offering them for waste treatment solutions, thereby cleaning the environment today as well as offering green energy options for the future.

Alkaline Membrane Fuel Cells

Acta has developed a range of platinum free catalysts to be used in a type of fuel cell called Alkaline Membrane Fuel Cell (AMFC). The extensive use of scarce and expensive platinum severely restricts the commercial potential for fuel cells to be used in mass market applications. Acta has been a market leader in developing not just the catalysts but also systems expertise with AMFC. Acta is seeing increasing evidence that many leading companies and technical institutes in the field are now also seeing the commercial potential for AMFC.

Disposable AMFC

Acta's unique low cost catalysts allow fuel cell technology to be used as disposable units to replace lead acid and alkaline batteries. However, they have much higher energy densities which means that they need be replaced less often. There are many industrial applications where the replacement and disposal of batteries is a major cost, offering Acta a significant commercial opportunity. The contents of an Acta AMFC with glycerol fuel will be much less environmentally hazardous to dispose of once expended.