AFC Energy Regulatory News (AFC)

29 April 2013

AFC Energy plc

("AFC Energy" or the "Company")

Fuel cell electrode life extends beyond nine months

AFC Energy (AIM: AFC), the industrial fuel cell power company, is pleased to announce that it has further extended the longevity of its electrodes to more than nine months of continuous operation as the Company's product development programme gains momentum.

The milestone, which was reached last week at the Company's laboratory in Dunsfold, Surrey, brings its fuel cell power generation technology closer to achieving full commerciality and potentially gaining lucrative opportunities with industrial partners.

Fuel cell longevity, power output, together with the development of low cost of materials and volume manufacturing, are some of the key goals being pursued by AFC Energy to establish its fuel systems as a commercial source of electricity for large-scale industrial applications.

As stated previously, AFC Energy has identified that, depending on the incentives available in key markets, the first industrial applications require a minimum electrode life of three months to be economically viable, particularly in the Far East and in countries such as South Korea. This minimum threshold was first achieved by the Company in May 2012. In Germany, where the Company is already carrying out long term trials with Akzo Nobel, one of the world's largest chemical groups, a fuel cell operating life of six months is required at our targeted power output for it to be commercially viable.

Commenting on the achievement Ian Williamson, Chief Executive of AFC Energy, said: "We continue to make excellent progress and deliver on our targets towards the commercialisation of our fuel cell systems. In the last year the technical team at AFC Energy have made great strides in improving both the power output and longevity of our fuel cells and we are now within touching distance of reaching our goal of 12 months electrode life. Achieving these targets will allow us to fully commercialise our product.

"Our first large scale installation incorporating all of these developments will be at Industrial Chemicals Limited, a leading UK based chemical group, and it will be fuelled by harnessing surplus hydrogen produced as a by-product at ICL's Essex site."

Electrodes are the critical components of a fuel cell which enable the electrochemical reactions to occur between hydrogen and oxygen (from air) to generate electricity, heat and water. Laboratory trials of electrodes are on-going and further field trials of improved electrodes are scheduled to begin early next month.

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About AFC Energy

Founded in 2006, AFC Energy plc is re-engineering proven alkaline fuel cell technology to reduce the cost of electricity. Alkaline fuel cells have been used on US and Russian manned space missions for decades to provide electrical power and drinking water. By using modern materials, design tools and manufacturing processes at scale, AFC Energy is developing fuel cells that will compete with conventional technologies such as turbines for electrical power generation. Today, AFC Energy is pursuing opportunities in several sectors where hydrogen is readily available including the chlorine, clean coal and waste-to-energy industries as well as applications for distributed/back-up power. For further information, please visit our website: www.afcenergy.com.