AFC Energy Regulatory News (AFC)

21st April 2010

SIR DAVID KING VISITS AFC ENERGY'S FUEL CELL TECHNOLOGY

AFC Energy, the world's leading developer of low-cost alkaline fuel cells, has received a visit from former Government Chief Scientific Adviser, Sir David King., Sir David, who is now the Director of the Smith School of Enterprise and the Environment at the University of Oxford, visited AFC Energy on the 15 April to tour the company's site and discuss their rapidly developing fuel cell technology.

Sir David's visit came just days after AFC announced a positive interim review of their technical activity from Dr. Jon Helliwell, Project Manager of Fuel Cell Applications at the Centre for the Process Innovation (CPI). The report confirmed the substantial strides the Company has made over the last 5 months as well as the significant headway achieved in commercialising the system and delivering on partner expectations.

During the visit Sir David spoke about the need for radical energy solutions and the importance of transitional technologies:

 "The biggest single challenge we're faced with globally is to move from a fossil fuel-based economy to fossil fuel less-society. To me, this challenge is the most wonderful technology, innovation, wealth creation possibility. What I've just seen at AFC is an exciting example of this. The alkaline fuel cell has the possibility to create power stations with megawatts of electricity."

Sir David also spoke passionately about the possibilities with one of the Company's largest target markets, Underground Coal Gasification (UCG):

"I think the alkaline fuel cell is virtually there and there's an immediate niche which is coal gasification. In North Wales and Leicestershire there are coal mines that are have been closed down that are inefficient for coal mining but all that coal is still there to be gasified and that process is what this alkaline fuel cell is based around. You produce hydrogen and carbon dioxide through the gasification process and send carbon dioxide back down into the mine - none is released into the atmosphere."

By allowing the exploitation of previously uneconomical coal sites, UCG could give access in the UK to an estimated 17 billion additional tonnes of coal. AFC Energy has already signed an agreement with Australia's leader in clean coal technology Linc Energy to integrate the fuel cell system for use in Linc's global UCG projects.

Ian Balchin, CEO of AFC Energy, commented:

"Sir David's visit highlights the rapid progress that the company is making. We are delighted that he recognised the increasingly wide application potential of our low-cost fuel cell systems for clean electricity generation".

Following the visit, Sir David invited AFC Energy to join leading global figures from the policy, business and academic communities at the 2010 World Forum on Enterprise and the Environment. Run jointly with The Times, the forum is a key event in the international environmental calendar, making an invaluable contribution to establishing and maintaining a sustainable global economy.

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

About Smith School of Enterprise and the Environment:

The Smith School's mission is to influence and enable decision-makers in business and government to make well-informed decisions that address the energy, environment and sustainable development challenges confronting the world. It seeks to advance the knowledge and understanding of the role enterprise must play if we are to secure a sustainable, low-carbon future.

The Smith School facilitates partnership between public and private enterprise, leading scientists, academics, public policy makers and organisations serving civil society. We are tackling critical global issues including climate change, energy supply and water shortage, promoting positive action from business and government leaders to address the challenge of sustainable development. We are advancing the role of enterprise in seeking low-carbon futures for all countries.