AFC Energy Regulatory News (AFC)

29 Feb 2008 07:01

AFC Energy Plc29 February 2008 AFC Energy plc Durability of fuel cell proven with 500 hour operation of prototype fuel cell AFC Energy plc, ("AFC Energy" or the "Company"), the low cost alkaline fuel cellcompany that focuses on industrial markets, is pleased to announce that it hassuccessfully achieved its fifth technological milestone; 500 hours operation ofits prototype system. The successful running of AFC Energy's prototype fuel cell confirms thedurability and stability of the system after prolonged operation. Two prototypessystems were tested at the same time, both provided similar and consistentsatisfactory performances. These results combined form over 1,000 hours oftesting, validating the reliability of the prototype. This milestone has been achieved within the projected timescale described in theCompany's Admission Document of April 2007. The 500 hour operation is a significant development in the run up to beginningshipment to the Company's customer, Akzo Nobel, who will use AFC Energy's fuelcells to generate clean energy from the hydrogen it produces as a by-product.The prototype provides valuable operating data which will be used to assist thesuccessful integration of the fuel cells into Akzo Nobel's complex operatingsystems. Akzo Nobel is the fourth-largest company in the chlorine manufacturing industry.The directors of AFC Energy estimate that the global chlorine industry producesapproximately 1.6 million tones of hydrogen every year. Fundamental to ensuring AFC Energy's fuel cells reach commercial viability hasbeen the reduction in the system's costs. As part of this process, AFC Energyhas eliminated the need for the life of electrodes to exceed 8,000 hours bymaking them easily replaceable and recyclable by housing them in a series ofexchangeable cartridges. Multiple cartridges assembled together will form a 3.5kW system. Initially five3.5kW systems have been ordered, with delivery scheduled to start in August 2008to Akzo Nobel's site in Bitterfeld, Germany. Gerard Sauer, Chief Executive, AFC Energy plc, said: "This is the penultimate milestone prior to the delivery of commercial units toAkzo Nobel in August 2008 and it is extremely satisfying to have reached thispoint ahead of schedule. "Through the cartridges that house the electrodes, we have developed a 'plug andpower' system that is easy to maintain, ensures the viability of our fuel cellsand makes mass production a more simple operation. "AFC Energy is now well positioned to become a real force in providingindustrial companies with solutions that allow them to re-use hydrogen torecover energy costs and contribute to their own profitability." Tim Yeo, Chairman, AFC Energy plc, said: "For fuel cells and any other type of renewable energy to be viable, it isessential they can compete with existing sources of power generation. "AFC Energy has always adopted a strategy of identifying the application andthen developing the solution. With the industrial sector's huge energyrequirements it remains the focus for the Company. It is extremely pleasing thatthe Company's prototype is performing and can be manufactured at a marketablelevel. We remain confident about the prospects for AFC Energy." - Ends - For further information please visit www.afcenergy.com or contact: AFC Energy plc 01483 276 726 Gerard Sauer, Chief Executive Blue Oar Securities 020 7448 4400 Shane GallweyJerry Keen Madano Partnership 020 7593 4000 Mark Way / Graham Moonie This information is provided by RNS The company news service from the London Stock Exchange