http://www.afcenergy.com/

Dawnay, Day Corporate Broking Research Note

Aim Admission Document

I've been filled @33p - time will tell.

i'm amazed you fancy this one ..... i guess they are closer than CRA to something commercial, but just because Mr A decides to throw some money in the pot, does not mean that the company is a winner

That's about it really - I feel I need a foot in this area and have watched these for ages.

Mind you, one to watch long term, will be this British company when/if they come to market. Exclusive: The scientists who turned fresh air into petrol

On edit - I should point out that it is a peppercorn holding.

http://www.independent.co.uk/news/uk/home-news/exclusive-pioneering-scientists-turn-fresh-air-into-petrol-in-massive-boost-in-fight-against-energy-crisis-8217382.html

http://wikisend.com/download/811664/AFC.pdf


MC PEAT & Co Booklet - Page 1

FC Energy aims to become one of the lowest cost generators of electricity on an industrial scale. Its proprietary ‘alkaline fuel cell’ technology is currently undergoing trials that, when successfully onc1uded, should open the route to its commercialisation. We initiate coverage with an 80p TP.

Low cost electricity producer:

AFC Energy’s main focus when developing its fuel cell technology, was to make sure that its ‘system’ could produce electricity on an industrial scale (ie MW class) at a very low cost — such that it would be competitive against mainstream electricity generators which use ‘old fashioned’ technology to turn heat energy (steam) into electricity using ‘engines’ and ‘turbines’ (inherently less efficient processes). We believe that AFC is on track to produce electricity at 4p/kWh (or lower) once commercial volumes are achieved (in FY’16).

Enormous market potential:

The production of electricity at such a cost would generate enormous interest from many industrial sectors. We believe that AFC will initially concentrate its resources to service a few key sectors such as the chlor-alkali market, the waste to energy market, the distributed power market and the Korean market. The provision of a service to just these markets could see AFC installing 3OMW+ of capacity pa in FY’16 onwards.

Pilot production plant:

The company has recently opened a new production facility at its UK HQ to enable it to produce up to 20,000 electrodes pa. This will give the company sufficient capacity to meet its anticipated levels of demand over the next 18 months. We take this as a good signal on the part of management of its confidence in the near term technical and commercial success of its fuel cells.


AkzoNobel trials:

AFC Energy has installed some of its fuel cells for trial purposes into a chlor-alkali plant owned by AkzoNobel in Germany. Many different parameters are currently being tested, including longevity. We believe that the successful conclusion of these tests will send a huge signal to other potential partners to accelerate their commercial discussions with AFC.
I - fantastic value opportunity: Using a DCF based valuation approach (based on our ‘central case’ revenue assumptions) we derive a 12 month ‘fair value’ for the stock of 1 15p (with a WACC of 15%). We have then applied a 30% market discount to arrive at our 12 month Target Price of 80p.

a very good critique, but of course and as outlined in the preamble it does presuppose that the trials are every bit as successful as expected or even promised

EU grant for UK fuel cell energy facility

Up to Euro 6 million grant award for UK's largest fuel cell energy facility

AFC Energy (AIM: AFC), the industrial fuel cell power company, and Industrial Chemicals Limited ("ICL") are pleased to announce that they have received notification that they have been awarded a European Union grant of up to Euro 6 million (£4.9 million) for the installation of the world's largest alkaline fuel cell energy generation system at ICL's chlor-alkaline chemical plant in Essex, UK.

The award is being funded by the Fuel Cells and Hydrogen Joint Undertaking (FCH-JU), through the EU's Seventh Framework Programme (FP7). It will provide AFC Energy and ICL and their European project partners with more than four years' financial support for the project, which was first announced on 25 June 2012. The grant is subject to final negotiation and, subject to agreement, is expected to be in place to enable the project to commence during Spring 2013. If concluded satisfactorily, AFC Energy will coordinate the project and expects its direct share of the project funding to be up to Euro 3 million (£2.45 million) with the balance to be received by the other project partners.

Great news, and not just for the grant, but for the publicity, which could easily be the best part of this RNS.

The bit that loomed large for me is the publicity which be more important to AFC than the actual monetary value of the grant.
I also like the following estimate statement, 'the stationary fuel cell industry is forecast to create 500,000 jobs globally over the next decade.
As AFC will soon have the the largest fuel cell system installation in the UK and it is believed to be the largest alkaline fuel cell system announced anywhere in the world, the future looks fantastic.

No doubt the sp will rise significantly today, with profit takers stepping in to knock it down a bit.
What we need now is a steady news flow, to keep any gains from todays RNS, from slipping down pre spring of next year.
AFC definitely have a strong lead in their field, and I can't see the present management team letting this slip.

Greek - it bodes well doesn't it - I'm quiet happy to have purchased recently and hopefully not have to look at them too often.

Hi Skinny,

My problem is that as investing is one of my main hobbies (I'm retired), when I'm at home I tend to have my computer on all day, so whenever I walk past it, I am tempted to glance at share prices.
I accept that your not looking at the AFC share price too often, is a better strategy!

Good job I'm a keep fit fanatic otherwise I would end up a computer potato (a bit like a couch potato, but more stressful).

Greekman - in case you hadn't noticed, I spend quite a bit of time on the computer :-)

Greekman,
You could probably use iPad and have it with you all the time.

Anyway, I prefer laptops or a proper PC as they are fully compatible with everything.

Hi Ahoj,

I have considered an ipad, problem is it would probably lead to a divorce, as my wife already refers to herself as a PC widow.

Hahaha,
Yes, the same problem here. I steer at my computer screen 100 times more, so the consequence can be a divorce ...

This is the new life, we are satisfied this way!!

GREAT NEWS
now lets hope some are more interested than just because the " AMO " is in

Issue of Share Options and

Exercise of Share Options and Warrants

Total Voting Rights

AFC Energy is pleased to announce that on 7 November 2012 the board of AFC Energy agreed to grant options over a total of 810,000 new ordinary shares of 0.1p each in the Company ("Ordinary Shares") (the "Options").

The Options have been granted to employees under the rules of the AFC Energy Plc Enterprise Management Incentive Share Option Scheme. The purpose of the Options is to recognize individuals' performance and to provide further incentivisation.

The Options are exercisable at a price of 35.75 pence per Ordinary Share, being the closing price on 6 November 2012 and are exercisable between 3 and 10 years following the date of issue. The exercise of the Options is not conditional.

The Company also announces that application has been made for 1,050,000 Ordinary Shares to be admitted to trading on AIM pursuant to the exercise of 500,000 options under the Company's EMI Share Option Scheme (the "Option Exercise") and 550,000 warrants (the "Warrant Exercise"). The options and warrants were originally issued in 2009 and have an exercise price of 3.1 pence per ordinary share.

The 1,050,000 Ordinary Shares issued pursuant to the Option Exercise and the Warrant Exercise will rank pari passu with the Company's existing Ordinary Shares and admission to trading on AIM is expected to take place on 14 November 2012.

Total Voting Rights

The total enlarged share capital of the Company following admission of the 1,050,000 Ordinary Shares will be 218,348,544 Ordinary Shares with no shares held in treasury. This figure may be used by shareholders as the denominator for the calculations by which they can determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the Disclosure Rules and Transparency Rules of the UK Financial Services Authority.

Following the issue and the exercise of the Options and Warrants there will be 11,140,000 options in issue and 11,006,000 warrants in issue, representing 9.21 per cent of the fully diluted share capital of the Company.

Ends

GM just cakme across thi,hope it helps?


beeezzz, 1MW of power from a fuel cell system operating at 60% efficiency is:

1 / 60 x 100 = 1.666666MW of fuel cells required

To check:

1.666666MW - 40% loss = 1MW output

----------------

1kg of Hydrogen contains 39.4kWh of energy
1.4m metric tonnes = 1,400,000,000Kg
1,400,000,000Kg x 39.4kWh = 55,160,000,000kWh
55,160,000,000kWh / 8760 (hours in a year) = 6,296,804kW
6,296,804kW / 1000 = 6,297MW of fuel cells required
Output would be 6,297MW - 40% loss = 3,778MW
3,778MW x 8760 = 33,095,280MWh a year of revenue
4p/kWh = £40/MWh (target price)
33,095,280MWh x £40 = £1,323,811,200 per annum (£6.09 per share)

Add waste Hydrogen from other industries like Chlorate, Ethylene, refineries. Add revenues from Waste-to-Energy, UCG and DG.

Now you can see why Ervington are piling in and why you won't find me selling any AFC stock for years. Might as well wait for the bidding war to maximise my gains.

and this

http://afr.com/p/national/abramovich_ponders_deal_with_linc_Uz3QmX8qyNwI5zYxBMKt7L

http://www.businessspectator.com.au/bs.nsf/Article/Macquarie-Mark-Bouris-Yellow-Brick-Road-BHP-Echo-pd20121108-ZTRWJ?OpenDocument&src=mp

http://www.proactiveinvestors.co.uk/companies/stocktube/1432/afc-energy-working-on-scaling-up-the-business-1432.html

Report from 3i on investor day.

Thu 16:39
Re: Investor day

polterlooser
19UP
Having attended now 3 investor days and the afternoon session to-day I think I can add a little more.
The new skid mounted unit is for ICL. It will be much easier to have a test unit un the UK near AFC's main base.
I found that there was more of an air of confidence with the staff I met without any loss of enthusiam. Many things have progressed since last year and the new production facility was working well. Electrodes were being produced as we went through. The many small improvements that have been made since last year will greatlly improve the product.
We did not get any clear answer as to when the AZKO testing will be complete because that facility will be necessary for some time yet. Every time a new improvement is made to the design it will need more endurence testing. However we must appreciate that these improvemnets are necessary to increase the competitivness of the sysytem