AFC Energy Regulatory News (AFC)

Press Release

AFC Energy plc's (AIM: AFC), low cost alkaline fuel cell technology has been chosen as a key component in a clean coal proposal for a project based in the North East of England.

The proposal for 500 megawatts (MW) of electricity generation from clean coal is being put forward by B9 Coal ltd. for the Department of Energy and Climate Change's (DECC) carbon capture and storage (CCS) demonstration competition. Rio Tinto Alcan's Lynemouth plant in Northumberland has been announced as a potential site for the plant. The proposal has full support from the North East Process Industry Cluster (NEPIC) and environmental project facilitators, Renew.

'AFC Energy is delighted to be part of such an exciting project. It provides the UK with a genuine opportunity for enhanced energy security whilst meeting demand for clean energy from domestic coal reserves. Our fuel cell technology will allow the lowest possible unit cost electricity alongside hugely efficient power generation' Ian Balchin, CEO of AFC Energy commented. "The proposal illustrates the growing understanding of the fundamental role that AFC Energy's fuel cell will play in the transition to a low carbon future.'

The project will showcase a unique combination of keystone technologies; Linc Energy's underground coal gasification (UCG) and AFC Energy's low cost alkaline fuels cells. UCG and processing of the gasses it produces results in separate streams of captured hydrogen and carbon dioxide (CO2). Whilst the hydrogen can then be used to power fuel cells, the CO2 is ready for storage. Using fuel cells electricity can be produced from hydrogen with an efficiency of up to 60% at projected costs as low as 4 to 5 pence per kWh. Upwards of 90% of the CO2 is captured as a by-product.

'At a time when the government is expressing a desire to show global leadership on CCS, B9 Coal and its consortium partners are offering a project that has the potential to become a world-leading template', explained B9 Coal Director, Alisa Murphy. 'AFC Energy's fuel cell technology has the potential to provide us with the first commercially viable and scalable option. The partnership enables us to supply a hugely efficient energy generation process with virtually no environmental impact, which is an incredibly exciting opportunity for the UK. If successful, the proposal this project would mark the first large scale demonstration of alkaline fuel cell technology in a CCS project.'

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Notes to editors

AFC Energy

AFC Energy is the world's leading developer of low-cost alkaline fuel cells. AFC Energy's technology is focused on large-scale industrial applications and the objective of producing the lowest possible unit cost electricity. www.afcenergy.com

B9 Coal

B9 Coal was established in 2009 with the objective of developing projects combining coal gasification with Carbon Capture and Storage (CCS) and alkaline fuel cell technology. B9 Coal brings together major corporations to develop pioneering clean energy and carbon capture projects across the world. www.b9coal.com

NEPIC

The North East of England Process Industry Cluster (NEPIC) is a stand-alone company, limited by guarantee, which was created and is owned by its member companies to represent the companies and supply chain of the Process Industry in the region. www.nepic.co.uk

Renew

Renew, the organisation tasked with the facilitation and delivery of commercial energy and environmental technology projects across North East England. They endeavor to place the region at the forefront of the UK's low carbon and sustainable energy drive. http://www.uk-cpi.com/3_pages/focus/renew/

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