Ceramic Fuel Cells Regulatory News (CFU)

Ceramic Fuel Cells signs BlueGen sales and service agreement for the UK with the RES Group

23 May, 2011

Ceramic Fuel Cells Limited1, a leading developer of high efficiency and low emission electricity generation units for homes and other buildings, has signed a distribution agreement with RES On-Site Limited, part of the RES Group2, to market, sell, install and service Ceramic Fuel Cells' BlueGen gas-to-electricity units in the United Kingdom.

Under the terms of the non-exclusive agreement RES On-Site will distribute BlueGen, targeting the commercial microgeneration energy market throughout the UK. RES On-Site holds MCS (Microgeneration Certification Scheme) installer accreditations in a wide range of technologies and is adding the microCHP accreditation to this and so will provide installation and after-sales service for BlueGen products. It will also support Ceramic Fuel Cells in developing the market for BlueGen.

The RES Group is a leading international renewable energy company with operations across Europe, North America and Asia Pacific. To date the RES Group has delivered more than 5GW of renewable energy projects worldwide. RES On-Site sells and installs a range of low emission power and heating products for commercial, industrial and public sector customers, including wind, biomass, solar PV and solar hot water.

BlueGen uses ceramic fuel cells to turn natural gas into electricity and heat for hot water, with each unit capable of producing more than three times the electricity needed to power the average home. The UK average domestic power consumption is estimated at 3,300 kWh per annum3.

Surplus electricity can be sold back to the grid or used in supplementary applications such as charging an electric car, as well as having the additional benefit of providing heat for domestic hot water use. BlueGen units generate electricity at up to double the efficiency of the current power grid, reducing energy bills as well as making significant carbon savings.

Most recently, BlueGen has been successfully chosen to participate in CE Electric UK's £54 million low-carbon Smart Grid project.

Commenting on the announcement, Brendan Dow, Managing Director of Ceramic Fuel Cells Limited said:

"To be working with the RES Group, one of the world's leading renewable energy development companies, is exciting news for CFCL and is yet another endorsement of BlueGen.

"The reputation, expertise and market penetration that the RES Group offers means that we are now even better placed to capitalise on the significant market opportunities that the UK offers."

Mike Atkinson - Managing Director, RES On-Site Limited added:

"RES are delighted to add the world leading BlueGen microCHP product from CFCL to our portfolio of class leading renewable and low carbon energy technologies. This diverse portfolio allows RES On-site to offer our customers the most suitable solution for their specific carbon reduction application.

"The UK Government's tariff structures supporting the deployment of exciting new products such as BlueGen makes the UK a hugely dynamic developing market for renewable technologies and RES On-site is committed to being at the forefront of that market."

Paddy Thompson, General Manager Business Development at Ceramic Fuel Cells added:

"RES On-Site Limited is highly experienced and MCS accredited, and together we are ready to enable BlueGen customers to take full advantage of the microCHP feed in tariff as well as the considerable energy cost and carbon savings made available by BlueGen. 

"This is the first UK distributor agreement signed by CFCL and we look forward to working closely with RES On-Site as awareness of the many benefits offered by fuel cell cogeneration grows."

The agreement is in line with Ceramic Fuel Cells' strategy to sell BlueGen units worldwide through a network of distributors and to outsource the sale, installation and service of BlueGen units. The agreement with RES On-Site Limited in the UK follows similar BlueGen distribution agreements with partners in Australia.

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Notes for Editors

1 - About Ceramic Fuel Cells Limited:

·; Ceramic Fuel Cells Limited is a world leader in developing fuel cell technology to provide highly efficient and low-emission electricity from widely available natural gas.

·; Ceramic Fuel Cells is 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.

·; Ceramic Fuel Cells has also sold 70 BlueGen gas-to-electricity generators 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 listed on the London Stock Exchange AIM market and the Australian Securities Exchange (code CFU).

·; For further information: www.cfcl.com.au

2 - About the RES Group

·; RES On-site is part of the RES Group. RES is one of the world's leading independent renewable energy project developers with operations across Europe, North America and Asia-Pacific. At the forefront of wind energy development for over 25 years, RES has developed and/or built more than 5GW of renewable energy projects worldwide.

·; The RES Group is active in a range of renewable energy technologies including large-scale biomass, solar, wave and tidal and on-site renewable installations.

·; For more information, visit www.res-group.com

3 - Source: Ofgem 2011.

For further information:

Ceramic Fuel Cells

Andrew Neilson

Tel: +613 9554 2300

Email: investor@cfcl.com.au

Nomura Code Securities (AIM Nomad)

Tel: +44 (0) 207 776 1200

Juliet Thompson, Chris Golden

Australia Media enquiries

Richard Allen, Oxygen Financial Public Relations

Tel: +613 9915 6341

UK Media enquiries

Mark Way

Tel: +44 (0) 7786 116 991

Email: Mark.W@harvardamerica.com

German Media enquiries

Tel: +49 172 850 49 75

Matthias Baumgarten, PR Partner GmbH