Generates First Industrial Power

09 January 2012

Embargoed until 07:00

AFC Energy plc

("AFC Energy" or the "Company")

AFC Energy's 'Beta' Fuel Cell Generates First Industrial Power

AFC Energy (AIM: AFC), a leading developer of alkaline fuel cells, is pleased to announce that further to its announcement on 3 October 2011, it has commenced electrical power generation at AkzoNobel's Bitterfield plant in Germany.

AFC Energy's Beta fuel cell systems have been generating electrical power at the AkzoNobel site since late last year.

The two Beta commercial-design fuel cell systems, installed since October 2011, have since been equipped with electrodes for trials, and are fuelled using AkzoNobel's industrially produced hydrogen. This work follows a series of trials that the Company has been carrying out using a Beta system installed at its UK facilities. AFC Energy uses its own in-house pilot manufacturing to fabricate electrodes required for testing.

This is the first commercial reference site for the generation of data and demonstration of the whole Beta system. The Company expects to be able to publish results from the trials after their completion.

Ian Williamson, CEO of AFC Energy, said: "This development is significant because it confirms our route forwards and paves the way for the commercialisation of the technology for industrial power generation in our primary target markets. We are collecting data to demonstrate the successful operation of the fuel cell in this industrial application."

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About AFC Energy

AFC Energy is a leading developer of low-cost alkaline fuel cells. AFC Energy's technology is focused on large scale industrial applications and the objective of producing the lowest possible unit cost electricity. Please visit our website www.afcenergy.com.