Ilika Plc Regulatory News (IKA)

Ilika plc

("Ilika" or the "Company" or the "Group")

Fuel Cell Materials Joint Development Project

Ilika is pleased to announce it has completed the scope of work for the next stage of the transport fuel cell programme with a major vehicle manufacturer and progressed the collaboration to a JDP from the original contract research relationship. The materials are being designed to require substantially smaller quantities of platinum (platinum-lean) than current catalysts, ultimately reducing the cost of fuel cell technology.

The terms of the contract renewal are such that the relationship has transitioned into a joint development project. Ilika will receive up-front payments towards the cost of carrying out the research and development activities. Foreground intellectual property will be jointly owned and Ilika will have the freedom to use and license the technology for a number of applications, including the motorcycle and electronics sectors.

A fuel cell is an electrochemical conversion device that produces electricity without combustion of the fuel. Hydrogen is the most common energy supply for a fuel cell as it has the right electrochemistry and the exhaust product is water. Many fuel cells under development, particularly for transport and electronics applications, use platinum-based electrodes. While platinum works well, it is very scarce and therefore expensive. Membrane electrode assemblies, of which platinum is the principal cost, typically make up 40% of the cost of a fuel cell. The end-market for fuel cell technology is still in its infancy. However, the development of platinum-lean catalysts or non-platinum-based electrode materials could significantly accelerate the development of this market.

Graeme Purdy, Ilika's CEO, commented, "This deal exemplifies our partnering strategy in that we form robust, lasting relationships with market-leading organisations who have expertise in their sector and a demonstrated channel to market. We jointly fund the development of new materials which can make a significant difference to substantial markets and share the commercial benefits".

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About Ilika

Ilika (AIM: IKA) is an advanced materials company which accelerates the discovery of new and patentable materials using its unique high throughput technologies (''HTT'') process for identified end uses in the energy, electronics and biomedical sectors. This process enables hundreds of scalable materials to be made in a single, automated operation and subsequently tested for key properties.

Traditionally, materials development has been a slow and arduous task, with manual, sequential methods used to make samples of material that are then tested for suitability. On average, it takes between seven and 10 years to move from an initial discovery through to the first commercial prototype. Experiments carried out by the Company can be executed 10 to 100 times faster than using traditional techniques.

The Company focuses on three principal sectors and has a number of active development programmes addressing markets within each sector:

Energy - developing innovative new materials for Lithium-ion batteries for vehicles for Toyota; developing high capacity hydrogen storage materials with Shell Hydrogen and Johnson Matthey through joint development programmes; developing cheaper alternatives to Platinum electrodes for use in fuel cells through a grant-funded project with the Carbon Trust; developing new materials for use in fuel cells for the transport sector for a major vehicle manufacturer; and carrying out in-house research on film photovoltaic solar cells.

Electronics - developing lead-free piezoelectric materials through a joint development programme with CeramTec; and developing phase change memory materials for high capacity memory.

Biomedical - developing polymers to enable the filtering of somatic stem cells from blood with a major global supplier of filters; it has been selling its CryoSkin® and MySkin® products for the treatment of burns and wounds in the UK through a specialist distributor and intends to commence clinical trials of its corneal bandage candidate.

The Group's commercialisation strategy is to enter into joint development or licensing agreements with large multinational companies which are seeking to commercialise products developed using the intellectual property created through jointly-funded programmes. Current commercialisation partners include large multinational companies such as Toyota, Shell, Johnson Matthey and CeramTec. The Company generates revenues from three sources: licensing and milestone payments from joint development programmes; fee for service from contract research projects; and from sales of CryoSkin® and MySkin®.

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