http://www.afcenergy.com/

Dawnay, Day Corporate Broking Research Note

Aim Admission Document

RNS Number : 2541C

AFC Energy Plc

12 April 2013

12 April, 2013

AFC Energy PLC

("AFC Energy" or the "Company")

AFC Energy announces working partnership with Foster Wheeler

AFC Energy, the industrial fuel cell power company, is pleased to announce that it is working with Foster Wheeler, the global engineering and construction contractor and power generation equipment supplier, to develop and roll-out, commercially, fuel cell systems for industrial applications.

Foster Wheeler will work closely with AFC Energy in the engineering and benchmarking of AFC Energy's fuel cell systems and scaling up deployment of these systems at commercial sites - including at Industrial Chemicals Ltd (ICL), a leading UK chemicals company, where a one megawatt AFC hydrogen fuel cell plant will be installed.

During an initial 12-month period, Foster Wheeler will focus on the review of critical design and fabrication milestones for AFC Energy's base-level multi-cartridge 250-kilowatt generation system that will form the building block of the ICL plant. Foster Wheeler will also chair independent safety and reliability reviews, including HAZOP and model reviews to evaluate engineering designs.

AFC Energy and Foster Wheeler plan to develop their relationship to a stage where Foster Wheeler would be the selected contractor to design and install full-scale fuel systems based on AFC technology in a wide range of industrial and utility-scale applications.

Ian Williamson, Chief Executive of AFC, said: "This working partnership will help AFC as we advance from a design stage technology business to a commercial scale company. As we prepare to deploy our systems in commercial settings, it is essential that we have objective experts on hand to put our plans through their paces and ensure that we are delivering a robust product. We are delighted that Foster Wheeler is working with AFC to help commercialise our fuel cells as part of the renewable energy mix, alongside biofuels, solar and other sources of clean power."

Filippo Abbà, Chairman & Chief Executive Officer, Foster Wheeler Energy Limited, commented: "This new relationship demonstrates our strategy to develop close relationships with leading-edge technology suppliers. The work we will be doing with AFC leverages our proven technical expertise and project delivery capabilities in power generation and hydrogen production."

Ends

Fuel cell electrode life extends beyond nine months





AFC Energy (AIM: AFC), the industrial fuel cell power company, is pleased to announce that it has further extended the longevity of its electrodes to more than nine months of continuous operation as the Company's product development programme gains momentum.



The milestone, which was reached last week at the Company's laboratory in Dunsfold, Surrey, brings its fuel cell power generation technology closer to achieving full commerciality and potentially gaining lucrative opportunities with industrial partners.



Fuel cell longevity, power output, together with the development of low cost of materials and volume manufacturing, are some of the key goals being pursued by AFC Energy to establish its fuel systems as a commercial source of electricity for large-scale industrial applications.



As stated previously, AFC Energy has identified that, depending on the incentives available in key markets, the first industrial applications require a minimum electrode life of three months to be economically viable, particularly in the Far East and in countries such as South Korea. This minimum threshold was first achieved by the Company in May 2012. In Germany, where the Company is already carrying out long term trials with Akzo Nobel, one of the world's largest chemical groups, a fuel cell operating life of six months is required at our targeted power output for it to be commercially viable.



Commenting on the achievement Ian Williamson, Chief Executive of AFC Energy, said: "We continue to make excellent progress and deliver on our targets towards the commercialisation of our fuel cell systems. In the last year the technical team at AFC Energy have made great strides in improving both the power output and longevity of our fuel cells and we are now within touching distance of reaching our goal of 12 months electrode life. Achieving these targets will allow us to fully commercialise our product.



"Our first large scale installation incorporating all of these developments will be at Industrial Chemicals Limited, a leading UK based chemical group, and it will be fuelled by harnessing surplus hydrogen produced as a by-product at ICL's Essex site."



Electrodes are the critical components of a fuel cell which enable the electrochemical reactions to occur between hydrogen and oxygen (from air) to generate electricity, heat and water. Laboratory trials of electrodes are on-going and further field trials of improved electrodes are scheduled to begin early next month.

Should bring in a few more investors!

Ian Balchin, Deputy Chairman and Chief Strategic Officer, is giving a presentation at the Zeus Capital "New Energy Technologies" investor conference in London on Thursday, 2 May 2013.

Grant of options under sharesave scheme

The Options have been granted to participating employees under the rules of the AFC Energy Plc Sharesave Scheme (the "Scheme"). The Scheme is an all-employee share option scheme, which was approved by the UK Revenue and Customs and which was introduced to encourage wider employee share ownership of the Company. The Company is pleased to report a 69 per cent take up by employees following the first round of invitations.

Thats not a bad take up percentage, although I would like to know what those none take up employees were offered in place of the options.

I will not be monitoring this thread for 14 days as I am walking the Coast to Coast for charity(210 miles with detours) but as a realist tending toward optomisim I expect on return to see an RNS re contracts.

But I also expect 2 weeks without rain, (what in Cumbria)so make of both expectations as you will!

Greekman - Enjoy!

Thanks Skinny.

There's nothing like a bit of positive controversy!

Just wondering if there was any news re a contract with S Korea, when would it be released.

As Korea is 8 hrs ahead of the UK, perhaps after the UK market closes and the Korean market was still closed would be the ideal time for both countries.

I appreciate that AFC are not quoted in Korea, but there is a good bet that any Korean company doing a deal would be.

As said, just a thought!

Greek - I guess this is behind today rise - MIDAS SHARE TIPS: Can you score with shares Roman Abramovich is buying in small firm AFC Energy?

There is also a more tenuous link here Comment: Yeo has been hiding in plain sight for years

Hi Skinny,

Yes did see the article but my feeling (usually wrong) is that there is more to this than the Midas article.

Lets just hope this is the start of a well deserved re-rating!

It has to be the article ? pumped and soon to be dumped ?

proactive investors -

AFC Energy, which is part owned by Roman Abramovich’s Ervington vehicle, meanwhile, advanced over 33% today.

The fuel cell maker, which is commercialising industrial fuel cells, was tipped by more than one media outlet in recent days.

Would be nice to see the 40p resistnce level being broken today, then the big thing without any news would be to hold above it!

A second burgeoning golden cross.

Linc Energy signs deal with Ervington Investments Ltd to evaluate UCG to GTL in Russia! LLC YakutMinerals (an affiliate of Ervington Investments) has commissioned Linc Energy to undertake an initial assessment study for a proposed UCG to GTL project in north-eastern Russia. Work will commence immediately. For more information please read the ASX announcement here:

http://www.lincenergy.com/data/asxpdf/ASX-LNC-489.pdf

In todays sea of red, I am just glad to see AFC level.

Recent high on good volume - all rather positive.

The more I read about so called world beating new power from this government the more I see AFC Energy as a winning power supplier.

In a Telegraph article today it re-iterates just what a complete mess our not for turning at any price power policy government is in, with ministers stating that they will look to requesting companies cut their electricity use by among other things, shutting down for short periods, and this is at a time when they are hoping that business gets the country out of the huge financial hole we are in, ( a good yes minister sketch if ever there was one).

The supply set guarantee price for wind farm energy when it was last set was at twice the general electricity supply price which dropped by 10% after general dissatisfaction by both the general public and ministers, and yet it has now been announced that the set guarantee price has been agreed at £155 per megawatt, three times the general going rate for electricity of just over £50 pm.
Other green energy is not that much better both in cost and efficiency, but lets just stick with wind energy for this example of AFC v Government policy.
As we know, the government hardly recognises fuel cells as a future power source so although including them in some subsidy figures that is only as a sop to calm some waters, but should we be bothered by this attitude!

Look at this from the businessmans point of view.

There is the CEO in a boardroom meeting discussing power supply to his/her mega conglomerate company, re power cost and supply.

We have mentioned cost, which is clearly looking too expensive, but then comes the subject of supply. With the government and most experts (although it's also obvious to none experts, IE us) that power supply will at best be intermittent mainly in winter due to demand increase v supply decrease due to when the wind farms shut down due to 'no wind' without the required back up of power stations.

Excepting that something has to be done to guarantee power at a reasonable price that is also on supply 24/7 thay start looking round for a none national grid supplier.

They take a look at AFC Energy..............I will leave you to fill in the blanks re cost value, supply guarantee and the customers control!

As to the governments energy policy, it could actually be to AFC Energy and their shareholders benefit.

So where do I see AFC Energy a couple of years from now, who knows, but I am fairly certain we will be in a much better position that of now!