Ceramic Fuel Cells Regulatory News (CFU)

23 January 2012

German Distributor secures customers for first 100 BlueGens

First German utility marketing BlueGen to customers

Ceramic Fuel Cells (AIM / ASX: CFU) a leading developer of high efficiency and low emission power products for homes and other buildings, and its sales partner sanevo blue energy have successfully introduced BlueGen to the German market.

After only six weeks into sanevo's marketing campaign, sanevo has received customer commitments for its first order of 100 BlueGen units. Sanevo has received commitments from public energy utilities in six German states as well as from residential and commercial customers. The BlueGen units are expected to be delivered and installed over the next six months.

Sanevo's largest customer for BlueGen is Stadtwerke Aalen, the local electricity and gas utility in the region of Aalen in Southern Germany. Working with sanevo, Stadtwerke Aalen is now the first German utility to actively promote and support sales of BlueGen to its customers, including by providing an incentive payment to early BlueGen customers.

Ceramic Fuel Cells' Managing Director Brendan Dow said: "This is a great start to our partnership with sanevo. There is huge interest in BlueGen from customers and utilities in Germany, plus supportive policy settings. We look forward to delivering on these first orders and securing larger follow on orders."

BlueGen 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.

The launch offer by sanevo includes the supply and installation of the BlueGen, plus complete integration with hot water systems, as well as a three or ten-year full-service contract, including maintenance, warranty and support services.

Ceramic Fuel Cells appointed sanevo as a BlueGen distributor in July last year, with an initial order for 100 BlueGen units. sanevo has a target minimum of 500 units for delivery in its second year and a target of 2,000 BlueGens over years three and four.

In Germany a number of federal states are contemplating market introduction programs for fuel-cell based micro CHP systems. The federal state of Saxony has announced a '1,000 Basement Programme' to provide financial incentives for installing fuel cell based micro CHP units. In late 2011 the state of North Rhine Westphalia also announced plans to increase the share of CHP electricity production to 25 percent, by providing funding of EUR 250 million over several years to support the deployment of local CHP systems.

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About Ceramic Fuel Cells:

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. The company has sold BlueGen units to major utilities and other foundation customers in Germany, the United Kingdom, Switzerland, The Netherlands, Italy, Japan, Australia and the USA.

Ceramic Fuel Cells has won five important awards in 2011: the DuPont Design for a Sustainable Future Innovation Award, the Microgeneration UK Technical Innovation Award; the Minerals and Energy category at the Governor of Victoria Export Awards; the Climate Alliance Limited Innovator of the Year Award; and the Clean Technology - Harnessing Opportunities Award, presented by the Banksia Foundation.

Ceramic Fuel Cells is listed on the London Stock Exchange AIM market and the Australian Securities Exchange (code CFU).

www.cfcl.com.au

About sanevo blue energy

sanevo blue energy tests, distributes and services fuel cell-based power generators. sanevo blue energy focuses particularly on the BlueGen product from Ceramic Fuel Cells. In addition to qualified employees, sanevo relies on a broad network of experienced partner firms. Sanevo partners with the renowned technical service provider SAG in the installation and maintenance of BlueGen. This ensures reliable and flexible servicing, competent installation and manufacturer-certified maintenance of these products. sanevo has many years of experience with innovative technologies in nano, micro or mini co-generation plants.

Additional information (in German): www.sanevo.de