http://www.afcenergy.com/

Dawnay, Day Corporate Broking Research Note

Aim Admission Document

The USA is still the 2nd biggest trade market in the world after China, although it is expected that China will slide back a bit this year allowing the USA to become number 1 again, so this could be a nice foot in the door to the country.

Also in the case of Florida (Allied's base) as with many states there are several 'green grant policies' just put USA green energy grants into google and see what you get, also for a Florida example see

http://www.c-jet.org/72/florida-renewable-energy-grants.html


If the MOU becomes a contract it will mean more than a single deal as it will surelly result in plenty of free publicity, as I am sure that Fuel Cell Energy is still very much under the radar in many companies plans.

Final Results and Notice of AGM

AFC Energy (AIM: AFC), the industrial fuel cell power company, is pleased to announce its audited results for the year ended 31 October 2013.

FY13 Highlights

· Extended the life of fuel cells to twelve months in the laboratory
· Finalised award of up to €6m from the EU to support the Power Up project
· Finalised award of up to €2m from the EU to support a research project for the development of ammonia-fed alkaline fuel cell systems
· Revenue more than doubled to £768k (2012: £361k)
· Loss before tax £4.5m (2012: £4.16m)
· Research and development expenditure increased to £1.48m (2012: £1.45m)
· Diluted loss per share of 1.88p (2012: 2.05p)
· Net cash amounted to £6.9m as at 31 October 2013 (2012: £10.9m)
· Announced a working partnership with Foster Wheeler to develop fuel cell systems for industrial applications
· Entered into a commercialisation agreement with Waste2Tricity International (Thailand) Ltd ("W2T Thailand") extending our reach into the fast growing emerging markets of South East Asia
· Acquired asset and intellectual property of Diverse Energy plc ("Diverse Energy"), to complement AFC Energy's European Union ("EU") funded ammonia-fed fuel system project
· Opened first sales office in South Korea in partnership with Intralink Ltd
· Established a research relationship with Lancaster University
· Appointed Jane Dumeresque as Finance Director and Company Secretary

Post Period Highlights

· Announced strategic partnership with Air Products PLC ("Air Products") within the Power Up programme
· Signed a non-binding Memorandum of Understanding with Allied New Technologies Inc ("Allied") to undertake a feasibility study for a fuel cell system
· Expanded the Dunsfold complex, allowing the company to move towards a more automated form of production
· Intellectual property portfolio expanded to 30 patents

Tim Yeo, Chairman of AFC Energy, commented: "The global fuel cell industry is continuing to show strong growth which provides a favourable backdrop for AFC Energy. We made excellent progress last year to commercialise our fuel cell technology which is aimed at supplying low-cost power for large scale industrial markets. During the year we extended the longevity of our fuel cell to 12 months, while also substantially improving its power efficiency. At the same time, we have launched new demonstration projects with world-class partners and opened new potential markets. AFC Energy has a unique, patented technology, a growing reputation and many commercial opportunities around the globe. With a strong balance sheet, the Board remains very confident of the Company's future success."

Notice of AGM

AFC Energy also today gives notice that its Annual General Meeting will be held at the Clarke Suite, Chelsea Football Club, Stamford Bridge, Fulham Road, London SW6 1HS at 2pm on 4th April 2014.

The Annual Report and Accounts and Notice of AGM will be sent to shareholders in March and will be available for download from the Company's website, www.afcenergy.com, in accordance with AIM Rule 20.

Progress. From IW's blog

18 February 2014

Our full year 2013 results represent another building block on the road to commercialisation of our fuel cells. We are pleased with the progress made last year and excited by our projects and plans for 2014.

We have strengthened the development team, upgraded our R&D resources and are expanding our production capabilities.

Just by way of a quick update on our new equipment. The first parts of the KORE are beginning to be delivered to Dunsfold now and we will put out some pictures on the website to keep you in touch with our progress. The next stage is to bring in our new production equipment. Pre delivery trials of our stacking robot are beginning at GB Innomech and our extruder is due to come to site next month. So, as expected, its full steam ahead on Power Up down here.

Our strong partnerships with global companies such as AkzoNobel, Air Products, Foster Wheeler and the recently announced, Allied New Technologies will continue to develop and help us target the key international markets where our low cost systems are on the verge of becoming commercially viable thanks to the availability of incentives.

We have a deliberate strategy in place to prepare the company for long term, sustainable growth.


Lots of nice little titbits in there, I especially like the comment, 'Key international markets where our low cost systems are on the verge of becoming commercially viable thanks to the availability of incentives'.

Its always nice to hear those three lovely words 'ON THE VERGE'.

RNS.

The train that left the station a few months ago and made steady progress since then is now nicely picking up speed.

This MOU was signed at a prestigious place, The St Regis Hotel in Bangkok and in the presence some real influential people.

The news just gets better and better.

Here's the link :- New Co-operation Agreement

Over the last 4 weeks we have had the following good news.

A New Co-operation Agreement, a Step up in marketing programme and AFC signing a MOU with Allied New Technologies.

The sp in that period has only gone up by 1.5p to 28.5p and yet only 2 months ago the sp was 33.5p, so even after the 3 news items above we are still 5p below the start of the year price.

The movement of the sp defies understanding, God help the sp if we get contracts coming through!

This front page article in the Telegraph Business could do a bit of good.

Titled, 'Chemicals Industry risk being wiped out'.

It refers to the very high cost of energy in the UK chemical industry that is stopping them competing with their foreign competitors, mainly due to the huge differences in production costs, due to a toxic cocktail of high energy costs, inflated by green taxes and stock feed prices, leading to rapid closure of plants.

Also the shale revolution in the USA is making their energy costs down to a third of those in Europe.

As the AFC Fuel cell can use on site produced hydrogen, they must as Ian Williamson said make this their first base customer.

Many have questioned, myself included, why Akzo Noble have not signed contracts, lets just hope higher energy costs coupled with increased competition anong chemical producers, delivers, the kick up the backside needed.

From their webite :- EHEC 2014 12 March 2014 09:00 - 14 March 2014 16:30

On the up Greekman.

Yes looking better than it has for some time.

So certain politician in the UK and the USA want sanction and asset seizures on Russian oligarchies such as Roman Abramovich.

Some are arguing for and against, personally I think that we should leave political decisions to the politicians as they know what they are doing, (you can not be serious I hear you all shout), no of course I am not.

But what completely puzzles me is what do the EU governments and the USA expect to achieve.

All that will happen is reciprocal action (I wanted to say t for tat, but iii would not accept), as there is a large amount of western investment in Russia, and what will happen if Russia did back down (which they won't) all that would happen is a civil war that put Crimea against the rest of the Ukraine, with a few from each area fighting on the other side.
Plus of course the effect it will have on future investment by foreigner in the UK, they wll be weighing up the risks even now.

If a part of a country is set on breaking away from its mother land, especially by the ballot box, then if they are forced into remaining tied to said land, all that follows is years of unrest.

Even accepting many citizens did not vote due to intimidation, well over 50% of Crimea has Russia for a first language and feel Russian so lets hope the UK and others keep their noses out and let them sort it out themselves.

Apologies re going on, but the stupidity of those in charge of our daily lives and our future, sometimes beggars belief.

First fuel cell order from PowerHouse Energy

AFC Energy plc (AIM: AFC), the industrial fuel cell power company, is pleased to announce that it has received the first order for its Beta+ fuel cell test system from AIM-listed PowerHouse Energy Group plc ("PowerHouse" or "PHE"), which is expected to be delivered in late 2014.

AFC's fuel cell system will be utilised together with PHE's ultra-high temperature gasification technology, which converts organic matter into a stream of syngas from which all potential toxins or pollutants are completely degraded and rendered safe. Hydrogen extracted from the produced syngas will be passed through AFC's fuel cell test system to generate clean energy.

AFC Energy will receive £150,000 from PHE for the supply of its Beta+ fuel cell test system consisting of two fuel cell cartridges. The cartridge within an AFC system holds the fuel cell stack and allows quick connection to the hydrogen and other utilities for ease of use. AFC will deliver, connect and commission the fuel cell system while PHE will prepare the site and provide the required utilities, including hydrogen, based on AFC's agreed specification. Further cartridges, additional maintenance or potential increases in capacity can be provided for an additional fee.

The transaction was negotiated by Waste2Tricity under the licensing agreement signed in February 2009, and the installation will be the first involving integration of AFC's fuel cell systems with hydrogen derived from the gasification of waste. The deposit of £50,000 will be paid in the form of PHE shares with the balance becoming payable after delivery. The system will form a key test bed for larger industrial applications in the waste-to-energy sector as the benefits of AFC's fuel cells and the significant increase in efficiencies become clear.

Am I the only one getting more and more nervous?

I have no idea of the full mixture of reasons why the sp is and has been on a downward trend since last mid July (48p).

There are many reasons why share prices drop, but with the sp now way below its highs of 75p late 2010 (admit it was way over priced at 75p) confidence in general can only be going one way.

AFC have to prove they can put their product where their mouth is soon, as I can't and won't watch the sp sink much lower.

I am still a great believer in AFC, but belief won't put money in the bank and no matter what anyone says, at the end of the day the sp is all that matters.

I have been caught before by letting heart rule head and can't afford to allow that to happen again.

i'ld rather be holding TSLA (us stock), despite its very heady price and p/e

This share is akin to IQE in as much as the sp does not do as you might expect it to!

John Lewis and similar small volume potential customers.

I have been wondering why AFC had not updated us on interest shown by John Lewis which had been first mentioned a couple of years ago in a RNS and has not been mentioned since.

This is a reply to an e-mail sent to AFC, as usual with AFC they do reply promptly as best they can to investor questions.

'We have had a number of discussions with JLP in my time at AFC. The opportunity to provide power to these solutions is dictated more by the availability and cost of the hydrogen molecule than it is by the fuel cell. Costs for small sized steam methane reformers (SMR) have not declined in line with those of the available fuel cells and this is delaying the introduction of distributed energy systems to such markets as was contemplated by JLP.

AFC is looking for low cost options for such SMRs and we have a number of discussions underway with potential suppliers, however, to date we have not found units which we can place in this market and make commercial sense. In addition, the pull through for our technology from the delivery of systems into this market will be very minor, so it seems sensible to focus our limited resources on markets which can help deliver significant volume and therefore allow us to move down our cost curve. Having said all that, we remain in periodic contact with JLP and will discuss options with them should the situation change'.

Having explained the position, the update makes perfect sense as to why there has been no contracts with John Lewis and other potential small volume customers.

Greek

Thanks for the update Greekman - another bottom drawer jobbie!

Hi Skinny,

Yes, it looks like it.
AFC are still my main holding and I have very high hopes for them in the next 12 to 18 months although as said can't afford to hold forever if the sp continues its downward trend.

At 0930 hrs today I put a few more into my ISA via 'bed and ISA', the buy going in at 24.4p when the mid price was 24.75p .
The buy shows up as a sell, I wonder how many of the buy trades today and over last few days at well below mid price have shown as sells

I appreciate that buys are often shown as sells and vice versa when the trade is near to the mid price, but strange that a deal well below the mid price shows wrongly .

So 30 deals today and all recorded as sells, if anyone believes that then they should completely avoid share dealing.