http://www.afcenergy.com/

Dawnay, Day Corporate Broking Research Note

Aim Admission Document

I appreciate we are already aware of the connection between AFC, Waste2Tricity and Thornton New Energy, but it is a good write up, mentioning, 'Such is the potential of the scheme that despite its use of coal, usually a guarantee of the environmentalists' ire, it has won the approval of Friends of the Earth"

So now we have the green brigade on board, it should help.

A sustainable future for coal? A new scheme pioneered beneath the Firth of Forth is "flash-frying" coal underground to provide a green source of energy.

By Lewis Smith
Published: 7:00AM BST 04 Aug 2009

http://www.telegraph.co.uk/science/5966969/A-sustainable-future-for-coal.html

Yesterdays Telegraph story is now on The Tehran Times website!

Reading the following, perhaps the editor knows something we don't.

Iran has huge amounts of coal, much of it not worth mining, so perhaps it is a lucrative market after all, for Thornton New Energy/AFC technology.

Coal is one of Irans most abundant but least developed mineral resources. Proven reserves are estimated at some 1,075 Mt, mainly coking and bituminous coal. There are three main operations and processing plants located in Kerman Province and in the Alborz Mountains at Zirab and Shahroud.

Iran maintains annual coal production of 1.5 Mt (est), from relatively small underground mines in the Kerman Coalfield and from even smaller operations in the Alborz coalfields. Most production in the country is from underground, from relatively thin, locally steeply-dipping seams, and is destined for the steel industry. Development of the Tabas Coalfield is the major coal-sector investment aiming to produce 1.5 Mt/y of coking coal from a new longwall operation. Twin inclines are under construction and during 2003 tender awards were announced for four new roadheaders from Dosco, a mine monitoring and control system from Davis Derby of UK and longwall roof supports from Fazos of Poland.

Kerman - Coal Co. owns several coal operations within the country namely :Eshkli coal mine which has proven reserves of 16,887,500 tonnes and produces 360,000 tonnes of coal per annum; Hamkar coal mine which has proven reserves of 6,970,380 tonnes and produces 259,000 tonnes; Hashouni with proven reserves of 25.9 Mt and an annual production of 240 000 t; Hojedk with proven reserves of 817,000 t and annual production of 68,000 t; Kamsar with proven reserves of 874,000 t and an annual production of 120,000 t.

So is there a possibility in the not too distant future, of a connection between Kerman Coal Co and TNE/AFC.

Anyone else still in this share (it's very quiet on here).

This is the picture that I just can't help seeing in my mind.

The only way to look at this technology/share is as a bubble just waiting to burst.
Usually the term 'bubble and burst' gives the impression of impending doom, but not I feel in this case.

I have rarely if ever seen so much impetuous in a technology, over such a short time space.
I appreciate that many articles have been dug out of the either by posters but they have to be there in the first place.

That is why I see this as a bubble. You can't keep all this info from eventually becoming common knowledge (until a few weeks ago I had never heard of coal gasification) with articles now appearing in the media, not just specialist journals or science mags.

So when will the bubble of information burst, I feel we will not have to wait long. The 'first sign' in AFC,s case will not be contract driven as we the private punters always are a couple of steps behind the big investment institutions, it will be when these big boys start to invest.

As we know the norm with these big investors is they often sit on the sidelines watching like a predator shark, waiting to strike.
They are more reluctant to take risks as they, not like us PI,s, have to quantify their investment decisions with their shareholders or/and co-investors, so they tend to wait till the evidence is more secure and less speculative.

So I will watch for the big jump in volume buys with as much interest as contract news.

This is now the most exciting share I have in my portfolio. I just hope when the bubble bursts, we are left covered in cash and not anything nasty, which is obviously a risk that is always present.

All IMHO of course.

RNS..Letter of Intent with Ineos ChlorVinyls (AFC Energy)

Expected this to come along soon, now we can be more confident that AFC fuel cells are in business and hopefully a string of new deals are on the way.

A nice success story building here Greek!

Hi Steve,

Yes and nice to see company on this thread.

Just a snippet from it's site.

INEOS is a young company. It has grown through a series of related acquisitions to become the worlds third largest chemical company with sales today around $47 billion.

Most of our employees have spent all their working lives in the chemical or oil industry. They arrived at INEOS from companies such as BASF, Bayer, Borealis, BP, Degussa, Dow, Enichem, Hoechst, ICI, Norsk Hydro and Solvay. We continue unashamedly to extract best practices from this very impressive group of people in all spheres of activity.

So it looks like they will have good connections (a bit like Akzo) in the industry, both due to their size and world wide spread.

Also it is a privately owned company, being the largest such company (private owned) in the UK.

Let's hope that they do as well as their ticker symbol namesake is doing at the moment!

I feel that the closing sp, down 2.08% is the affect of many investors expecting news of a contract and the actual news being a letter of intent.
So the tick up over the last few days was on rumoured/expected very good news, (contract) when reality was good news, the LOI.
It's a bit like expecting a lottery jackpot but then being informed you only have 5 numbers and the bonus ball.
But we now have substance that we did not have until today, instead of rumour, but the sp drops.
It's as they say a funny old world, especially when it comes to investing.

Yep, I have to agree with that; it is still a young company though and it has achieved a lot in 3+ years. Patience will be rewarded well I think!

Good value. You must be kidding.

Under new rules which came into force on July 1, constituents are entitled to know how much time MPs spent on second jobs and the income they received.

Tim Yeo MP for Suffolk South earned 3,750 for six hours as chairman of AFC Energy which is developing alkaline fuel cell technology.

If he was worth paying 626 per hour, he must be good.

RNS re none platinum electrodes.

The iteration time to prepare new electrode materials, manufacture electrodes, test them, analyse them and review their performance is now a matter of hours rather than days as it was prior to the upgrade. The Company now has the capability to manufacture, depending upon the precise process details, up to 1000 electrodes per day in house.

The above paragraph could be a fantastic boost to the AFC system.

'Tis indeed good news. The future is bright!

An excellent write up.

Edison Investment Research is upbeat on alternative energy company AFC Energys (AIM: AFC) prospects, envisioning an lucrative global market for the company and a significant revenue stream in the next few years,

http://proactiveinvestors.co.uk/companies/news/9215/edison-research-upbeat-on-afc-energys-low-alkaline-fuel-cell-potential--9215.html

OK how about this for forward looking.

Just been announced that NASA is hoping to find water in sufficient quantities on the moon, so they can use 'Split Water Hydrogen'. They hope that they will then be able to separate the hydrogen in this water to use in differing forms of energy to supply other moon/space missions.

Can't wait for the RNS stating that AFC are to supply the first hydrogen fuel stack system in space.

No doubt the sp would then take off and rocket up.

Hows that for being positive.

Obviously a tongue in cheek post, But you never know.

This RNS is fantastic news.

AFC have signed a binding Heads of Agreement with Linc Energy Limited

Now all it needs is the lawyers to sort out the full legal stuff and we are on our way.
The holy grail of clean fuel is out there, could this (and AFC) be a part of it.
At least we know what the extra fund raising was for. As they said only a few months ago that 'they would not need extra funding' I was annoyed that they had not expanded on the reason why they had almost overnight changed their minds.
I thought/hoped it may have been to put them on a firmer financial footing for something just round the corner. Any potential customer is easier to get on board if they have the evidence that the providing company is on sound financial footing.
The doubt, at least for now re finance is dead.

This should up the sp by 40 to 50% today. Whether it will or not not long to wait.

Oh well I was very wrong about the 40 to 50% increase. On reflection it was a very poor call by me. I think it is partly the lack of clarity, which will no doubt clear on the release of the full deal after the lawyers have reviewed it, and (mainly I feel) the connection with the White family, being involved on both sides of the deal.

Just read the brokers note, word for word taking about 1 hour.
As expected there are quite a few ifs, and as they say it is a conservative model, so the only ifs that are counted within the model/figures are relating to the Base Chemical Industry and are not counting the Waste to Energy or UCG possibilities.
So as said plenty of ifs (if there wasn't the sp would obviously be many multiples of the current value and probably too late to make any profit from being invested).

I would advise anyone who has not read the note to do so. It does read like a road map to the Holly Grail, and if (theres that word again) they don't get lost along the way, it looks like they (AFC) could easily become one of the share finds of the decade.

If this was worth a punt 1 to 2 years ago, it has to be worth backing now.

Read yesterday in The telegraph that it is expected that 1 coal fired power station will be opened somewhere in the world 'every day' next year.
Due to the ever increasing demand for power and the ever increasing cost, it appears that 'King Coal' is a long way from dead.
When it comes to polluting the environment or having insufficient power there is no contest, especially when the newer mega powers like China are expected to take over from the US as number 1 by 2030, (my own view is they won't, as the USA will I believe fight and win, this race to get back to the top).
So the new coal may well have to be cleaner, and as they say necessity is the mother of invention, surely we will see coal being used in ever increasing cleaner methods. UCG re coal and bio-fuels as supplements will have to become more efficient. AFC due to their link into UCG coupled with their other fuel cell use, IE waste, place them in a good position in the battle of power supply.

RNS out finally.

Excellent news although released late as this leaked out several hours ago.
There are so many things boiling for AFC at the moment it will surely take some gigantic catastrophe to make things go wrong now, (Hope that does not put the proverbial mocker on it).
If the big investors want to get in before things really start to motor they can't wait much longer.
Next few weeks/months will be very interesting.

Hi greekman, just come across this company and its tech. seems very exciting and well worth a closer look. Would appreicate any info which could get me upto speed,especially how long to build and commission a 50kw
power plant etc?
TIA
cyril