AFC Energy Regulatory News (AFC)

13 Oct 2009 07:00



13 October 2009

AFC Energy PLC

('AFC Energy' or the 'Company')

AFC Energy announces major technology milestone and operational update

AFC Energy PLC, the developer of low cost alkaline fuel cells, is pleased to announce that it has successfully completed an important field test of its first generation, lower cost, non-platinum electrodes at AkzoNobel's chlor-alkali plant in Bitterfeld, Germany. During the test AFC Energy's fuel cell system fed electricity into AkzoNobel's grid, on a par with previous field tests using platinum based electrodes. General Update

Completed field-test of proprietary, lower cost, non-platinum electrodes at AkzoNobel's Bitterfeld plant - an important step towards full scale operation.

Application for 4 patents relating to core technology.

Upgrade to development facility close to completion with faster electrode development and the capability to manufacture up to 1000 electrodes per day on site.

Strengthening of technical team through the appointment of Dr Richard Dawson (formerly senior engineer at Ceres Power).

Following the installation of the Company's fuel cell system at AkzoNobel's Bitterfeld plant in Germany, the Company is pleased to announce that it has completed an important field test of its first generation, lower cost, non-platinum electrodes in its fuel cell system. In addition to generating electricity this field test included exporting electricity to the customer's on-site grid and automated operation of the fuel cell and remote monitoring of the fuel cell performance was demonstrated.

The Company's technical team continues to develop innovative solutions that will enable the Company's fuel cell systems to be manufactured at lower cost and with higher efficiency. The Company has recently filed applications for a further 4 patents as part of the measures to protect its core intellectual property. The Company's intellectual property strategy centres on protecting developments made to its low cost electrodes. 

An upgrade to AFC Energy's development facility is now close to completion. This upgrade is aimed at reducing the time taken to develop and optimise electrode materials and to enable the Company to rapidly manufacture sufficient electrodes for its initial requirements. The iteration time to prepare new electrode materials, manufacture electrodes, test them, analyse them and review their performance is now a matter of hours rather than days as it was prior to the upgrade. The Company now has the capability to manufacture, depending upon the precise process details, up to 1000 electrodes per day in house. 

The next significant phase of development is the continuing improvement to electrode and system performance towards its full design specification. In particular, AFC Energy's work will be concentrating on further development of its proprietary, low cost, electrodes. In parallel with this work, the upgraded development facility and the recruitment of additional staff has enabled the Company to accelerate development of its large fuel cell system which is designed to work at up to 50 kilowatts ('50kW System'). The Company now expects the 50kW System to be ready for field trials as early as the first calendar quarter of 2011. This 50 kW System will be the Company's building block for large scale, multi-megawatt installations. 

The Company has made several new appointments to its operational staff principally in support of accelerating development of the 50 kW System. These include a production manager and fuel cell scientist, Dr Richard Dawson who joins the team from Ceres Power where he held the position of Senior Engineer. 

With careful cost management AFC Energy has been able to strengthen its team and implement the upgrades to its development facilities without increasing overall running costs. Other than initial quantities, the Company does not intend to assemble fuel cell systems in-house. AFC Energy's fuel cell systems operate at low temperatures and at close to atmospheric pressure. They can be fabricated from low cost materials and components made using low cost processes. There are considerable economies of scale which can be achieved through contracting out the assembly to third parties and so the Company's projected capital spend is modest.

In terms of target markets, AFC Energy's core focus remains on delivering commercially viable fuel cell systems to the chlor-alkali industry for stationary power generation from its surplus hydrogen, which is generated as a by-product. The Company is continuing to target additional markets for the efficient generation of electricity from hydrogen, including the waste to energy market where hydrogen can be liberated from organic waste.

Ian Balchin, AFC Energy's Managing Director, said:

"This successful testing of our fuel cell system using proprietary, lower cost, electrodes demonstrates that the AFC Energy has taken the next step in the development of a truly low cost, commercially viable, alkali fuel cell system. I wish to extend my thanks to the innovative team from AFC Energy and AkzoNobel that have contributed towards this success.

Our sights are very much set on our 50 kilowatt system which will become the building block for multi-megawatt installations. I particularly welcome the new appointment of fuel cell scientist, Dr Richard Dawson to work on the 50 kilowatt system. With our strengthened team and upgraded development capability, we believe we shall be able to develop our proprietary electrodes faster and at a lower cost than any other company. We now expect to have our 50 kilowatt system available for field trials as early as the first calendar quarter of 2011 and our smaller system to be available during 2010."

For further information please visit www.afcenergy.com or contact: