AFC Energy Regulatory News (AFC)

30 January 2013

AFC Energy plc

("AFC Energy" or the "Company")

AFC Energy initiates a research relationship with Lancaster University

Fuel cell test capability expanded at Surrey base

AFC Energy (AIM: AFC), the industrial fuel cell power company, is pleased to announce that it has established a new research relationship with the engineering department at Lancaster University.

The new link-up allows AFC Energy to draw on the expertise of one of the UK's top research universities and re-establish its relationship with former AFC Energy employee and fuel cell expert Dr Richard Dawson. A team led by Dr Dawson, who is still retained as a consultant by the Company, will be asked to undertake research and testing to help AFC Energy better understand how alkaline fuel cells operate using an array of different hydrogen feed-stocks.

AFC Energy, which announced last week that it had achieved six months electrode life in its laboratory, has also undertaken a further expansion of its fuel cell test capability at its Surrey base. The increased capability will support the Company's product development programme as it continues its work on extending the longevity and power output of its propriety electrodes.

Dr Gene Lewis, Technical Director, said: "It is imperative that AFC Energy continues to develop its core technology and maintains its first-mover advantage. Given that each electrode is now likely to spend longer on test we needed to add further capability into the laboratory by expanding and improving our testing facilities. The relationship with Lancaster University and Dr Dawson is an excellent way to harness world-class minds and facilities for developing our alkaline technology more rapidly."

Dr Richard Dawson commented: "We believe AFC Energy is the UK's leading fuel cell company and I am very pleased to maintain a close working relationship with them. At Lancaster we are excited about collaborating on our world class research in this expanding field. This exclusive tie-up in terms of alkaline fuel cell technology is particularly timely with the University's strategic investment of more than £30m in the areas of engineering and chemistry which will bring both first-rate minds and facilities to bear on this project."

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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.