Last checked at 5 Mar 2012 07:00
AFC Energy plc
('AFC Energy' or the 'Company')
Repayment of Loan from Waste2Tricity
05 March 2012: AFC Energy plc (AIM: AFC), a leading developer of low-cost alkaline fuel cell technology for industrial applications, is pleased to announce that it has received £152,500 in full repayment with associated interest of a loan made to Waste2Tricity Ltd ("W2T") in 2009.
As announced in February 2009, AFC Energy entered into an agreement with W2T to supply AFC Energy fuel cells for integration into W2T's system for the conversion of municipal solid waste to energy. Under the terms of the agreement AFC Energy received an option to acquire 25% of the share capital of W2T, which was exercised in June 2009 for a nominal fee.
W2T was established to initiate waste-to-energy projects using the most economically viable technologies available. W2T selected AFC Energy's fuel cell systems as having the greatest potential to be the most efficient technology for generating electrical power from gasified waste. The repayment of the loan follows progress made by Waste2Tricity in the development of waste-to-energy projects within the UK.
Both companies will continue to progress waste-to-energy opportunities as they arise.
Ian Williamson, CEO of AFC Energy plc, said:"Our relationship with W2T has already yielded tremendous benefits to AFC Energy. Since we entered into the partnership, commendable progress has been made to tailor our technology and we have also generated great interest in the sector. The purpose of the loan was to open up the excellent commercial opportunity offered by our fuel cells when they are deployed within the waste-to-energy sector. While lead times in both the development of projects and their delivery are long, we will continue to work with W2T to exploit those opportunities. "
Peter Jones, Chairman of Waste2Tricity, said:"I am delighted that Waste2Tricity has received its first substantial revenue for its involvement in a large scale waste-to-energy plant. This income has enabled Waste2Tricity to meet its obligations to repay all of its outstanding loans and will enable the company to progress with its business plan. We really appreciated the support from AFC Energy and others in assisting the company whilst it gained commercial traction. We have built a robust pipeline of UK projects and now plan to assess opportunities in the rest of Europe and beyond."
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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.
About fuel cells
A fuel cell is a device that produces electricity, heat and water by reacting a hydrogen-rich fuel with oxygen. Conventional engines and turbines combust fuel to produce mechanical energy prior to generating electricity. The direct generation of electricity allows fuel cells to be highly energy efficient. There are several different types of fuel cell, each with its own characteristic but they are all based around a common central design. Fuel cells are increasingly being deployed for applications ranging from vehicles, domestic boilers, powering portable equipment and large scale power stations.
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