AFC Energy Regulatory News (AFC)

24 February 2014

AFC Energy plc

( "AFC Energy")

New drive to accelerate launch of energy-from-waste projects in Thailand

AFC Energy plc, a leading British industrial fuel cell power company, is pleased to announce that it has signed a new co-operation agreement in Bangkok to accelerate the adoption of its fuel cell systems in proposed energy-from-waste (EfW) projects in Thailand.

The agreement, comprising a Memorandum of Understanding, was signed late last week between AFC Energy, Waste2Tricity International (Thailand) Ltd, and Alter NRG Corporation (collectively "the Participants") at the St Regis Hotel in Bangkok. The ceremony was held in the presence of His Excellency, Mark Kent, the UK ambassador, together with senior executives from the Thai banking, waste and real estate sectors.

The MOU builds on the commercialisation deal announced on 31 October 2013 granting exclusive rights to Waste2Tricity International (Thailand) Ltd to use AFC Energy's low-cost fuel cell systems to generate renewable power from hydrogen gasified from municipal solid waste.

Following positive market feedback, the Participants have expanded their cooperation to advance a number of large scale EfW projects in Thailand. In addition, the Participants will investigate ways to assemble fuel cells in Thailand, reduce the timeline of fuel cells being integrated into waste plants and lobby the Thai government for fuel cell incentives.

Waste2Tricity International (Thailand) Ltd is a majority owned subsidiary of Waste2Tricity Ltd, a UK based developer of EfW projects in which AFC Energy owns 23% equity. Alter NRG, based in Canada, is a leading waste gasification technology company.

Ian Williamson, Chief Executive Officer AFC Energy, said: "We are delighted to continue our close relationship with Waste2Tricity and to be working closely with Alter NRG. Everyone believes there is a considerable opportunity for large scale waste to energy projects in Thailand as these will not only increase energy independence from renewable sources but will also alleviate pressure on landfill to deal with waste. Working together we can benefit from first mover advantage and open up this market quickly and demonstrate a compelling investment case for such fuel cell-based power systems."

PK Thummukgool, Director of Waste2tricity and Project Director for the Thailand project, said: "This agreement clearly demonstrates Waste2Tricity's intentions to shorten the time to market for our energy-from-waste systems incorporating AFC's low cost fuel cells. The MOU will quickly establish a business model to monetise the growing waste stream in Thailand and also create a platform for developing similar projects in the ASEAN region."

Ends

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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 platinum free, advanced 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.

About Waste2Tricity

Waste2Tricity is a British venture established to implement the most efficient energy conversion process available - by implementing a unique combination of AFC Energy's new generation alkaline fuel cells with Alter NRG's plasma gasification and other existing proven technologies. The system will therefore have significant environmental and cost benefits over other methods of electricity generation. Waste2Tricity are Alter NRG's sales representative in the UK for waste derived applications of this technology. For more information, visit Waste2Tricity at www.waste2tricity.com.

About Alter NRG Corporation

Alter NRG Corp. provides and pursues alternative energy solutions to meet the growing demand for environmentally responsible and economically viable energy in world markets. We work towards making landfills obsolete and to replace incineration with our more efficient and environmentally sustainable plasma conversion technology. For more information, visit http://www.alternrg.com/