Ceramic Fuel Cells Regulatory News (CFU)

Monday 23 July 2012

BlueGen to benefit from increase in UK Feed in Tarifffor Micro Combined Heat and Power

Ceramic Fuel Cells Limited (AIM / ASX: CFU), a leading developer of small generators that use fuel cell technology to convert natural gas into electricity and heat for homes and other buildings, welcomes the UK Government's announcement of an increase in the feed in tariff for micro combined heat and power products (m-CHP), including Ceramic Fuel Cells' BlueGen product.

Following the closure of Phase 2B of the consultation on feed in tariffs for a range of technologies including m-CHP initiated in February 2012, the UK Government announced on Friday 20 July that to encourage the growth of m-CHP it will increase the m-CHP feed in tariff, from a total of 14.2 pence per kilowatt hour to 17 pence per kWh, comprising:

·; A generation tariff, increased from 11.0 pence to 12.5 pence for every kilowatt hour of electricity generated on-site; plus

·; An increase in the export tariff from 3.2 pence to 4.5 pence for every kilowatt hour of electricity exported to the grid.

The first 30,000 m-CHP units will be eligible for the new rates with no degression. Customers installing BlueGen with a commissioning date of 1 December 2012 or later will be eligible for the new m-CHP tariffs.

BlueGen is the first and currently the only fuel cell m-CHP product to receive certification under the Microgeneration Certification Scheme and be eligible for the UK feed in tariff. The new tariffs will make the benefits of BlueGen accessible to a greater number of homeowners, community energy groups, small businesses, housebuilders and social landlords than ever before.

Ceramic Fuel Cells' Managing Director Brendan Dow said:

"The increase in the feed in tariff demonstrates that the UK government recognises the environmental and financial benefits m-CHP can provide. The government previously stated that it welcomes the m-CHP industry's desire to see one million m-CHP units installed by 2020. Working with all our manufacturing and retail partners in the UK we look forward to leading the industry towards reaching this target and to playing an important role in the country's energy needs and meeting its environmental targets."

Ceramic Fuel Cells' BlueGen product converts natural gas into electricity and heat for hot water for homes and other buildings. BlueGen delivers an electrical efficiency of up to 60 percent - the highest in the world. When the heat from BlueGen is used to produce hot water, total efficiency increases to up to 85 percent.

More information:

·; Crest Nicholson, one of the UK's leading house builders, has installed a BlueGen unit in a low carbon home in Epsom, Surrey. The BlueGen is providing power, heating and hot water for the home. A video of the BlueGen unit, with an interview by Brendan Dow, is available at http://www.cfcl.com.au/webcasts/.

·; More information on the BlueGen product is available at www.bluegen.info.

·; More information on the UK feed in tariffs is available at www.decc.gov.uk

About Ceramic Fuel Cells Limited:

Ceramic Fuel Cells is a world leader in developing fuel cell technology to generate highly efficient and low-emission electricity from widely available natural gas. Ceramic Fuel Cells has sold its BlueGen gas-to-electricity generator to major utilities and other foundation customers in Germany, the United Kingdom, Switzerland, The Netherlands, Italy, Japan, Australia, and the USA. Ceramic Fuel Cells is also developing fully integrated power and heating products with leading energy companies E.ON UK in the United Kingdom, GdF Suez in France and EWE in Germany.

The company is listed on the London Stock Exchange AIM market and the Australian Securities Exchange (code CFU).

www.cfcl.com.au

www.bluegen.info