AFC Energy Regulatory News (AFC)

11 August 2011

Embargoed until 07:00

AFC Energy PLC

("AFC Energy" or the "Company")

First commercial-scale fuel cell system commissioned

AFC Energy (AIM: AFC), a world leading developer of alkaline fuel cells, is pleased to inform investors that it has successfully completed the commissioning of its first commercial-scale fuel cell system (the "Beta System") at its premises in the United Kingdom. This follows the successful completion of the HAZOP study that the Company announced on 8 August. The final stage of the commissioning process was a demonstration of electrical power generation. This first Beta System will now be used primarily for testing anddevelopment work in support of commercialisation.

AFC Energy is preparing to deploy additional Beta systems for field trials.

Balchin, AFC Energy's Executive Deputy Chairman, said:  "This is a significant milestone for AFC Energy. Commissioning of the Beta System is the culmination of five years' work by our dedicated team and is a remarkable achievement. It puts us well on our way to delivering a low-cost, low-carbon alternative to conventional electricity generation."

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About AFC Energy 

AFC Energy is a world leading developer of low-cost alkaline fuel cell systems that use hydrogen to produce clean electricity, heat and water. AFC Energy's technology is focused on large-scale industrial applications and the objective of producing the lowest possible unit cost electricity. Please visit our website at www.afcenergy.com.

§ High efficiency levels: using readily available hydrogen and air as the source of oxygen, electrical efficiency is up to 60%, which compares to around 30% for conventional electricity generating technology.

§ Low cost production: fabricating with low cost materials combined with industrially proven production processes.

§ Low temperature and pressure: operating at less than 100 degrees Celsius enables us to use polymer mouldings for many parts.

§ Hydrogen sealing: operating at low pressure, hydrogen is readily sealed within the system.

§ Thermal management: a circulating liquid electrolyte simplifies the thermal management of the system.

§ Balance of plant: the majority of components are off-the-shelf and mass manufactured for other uses enabling us to benefit from these economies of scale.

§ Value engineered for assembly: the component count has significantly reduced and commercial units are designed for easy assembly.

§ AFC Energy has significantly reduced the cost of its technology to make its fuel cell system a commercially compelling proposition.