http://www.afcenergy.com/

Dawnay, Day Corporate Broking Research Note

Aim Admission Document

Strange yet again, after all those sell trades yesterday the sp opens at .25p up and stays there after 8 sell trades today. Someone has suggested that a buyer is building a stake and I agree that the signs are there (now watch the sp fall to prove me wrong).

As a Yorkshireman our saying of 'the is now't so queer as folk' springs to mind, perhaps 'there is now't so queer as the AIM' is more apt here.

Good job I don't work for the BBC as I would be out on my ear after using language like that.

Yes - 'Yorkshireman' is a bit strong!

Lol

Skinny,

This is Not A Ramp,

Overheard by my friend's uncle's cousin's wife's sister, twice removed that, Roman Abramovich being disappointed that Chelsea FC failed to win the Premier League Trophy is selling the club and intends to buy AFC lock stock and fuel cells.

You too eh!

Petition to stop short selling.

Well worth a read.

http://epetitions.direct.gov.uk/petitions/62851

Directorate Change

AFC Energy, the industrial fuel cell power company, announces that Jane Dumeresque, Finance Director and Company Secretary, is leaving the Company by mutual agreement to focus on her other business interests. Jane will continue to support the Company during its search for a replacement.

Tim Yeo, Chairman of AFC Energy, said: "I would like to thank Jane for her contribution to AFC Energy's progress and wish her well for the future."

Jane Dumeresque said: "I have enjoyed my time at AFC Energy. The Company continues to make great strides and I wish them every success."

Nice bit of publicity posted on another site by Sieboldi,

http://www.theengineer.co.uk/channels/production-engineering/in-depth/stacking-up-making-hydrogen-fuel-cell-manufacturing-viable/1018749.article

Today's RNS.

Can only be good for AFC, plus yesterday there was an article in the Sunday Telegraph stating that our beloved rulers in the EU have stated that re cycling will have to increase by 50% by 2030.

As the UK is still below the present set target it is thought that most of this increase will need to be made by turning 'waste to energy', not just in the UK but world wide.

With today's World Hydrogen Energy Conference in Gwangju, Korea this is a great opportunity to sell AFC's Fuel Cell to a world that must be looking hard at, not just how they can produce more energy cheaper, but how to reduce waste at the same time.

I also feel that IW would not be pushing so hard if they were not closer to be able to full fill some orders earlier than we perhaps think, especially will this bit from the blog ' Over last couple weeks we've seen the KORE system begin to take shape with the new base plate and initial components now in place. On the production side, the extruder is up and running and being validated, which is a real game changer in terms of production ability for the company - it will now be possible to achieve in 5-10 minutes, what would have previously taken us a week to do manually'

So say we take the 10 mins as minimum and the extruder is running for only 8 hours per day, that means in an 8 hour day production is equal to 48 weeks under hand assembling days.

Everything is starting to come together nicelly, AFC is looking very good indeed.

Everything except the sp that is! :o)

Hi Kimoldfield,

Yes, it appears that no one at the moment is accepting anything until contracts start to flow, and after so long I don't blame them.

They need some new players :-)

Ask Roy Hodgson, he knows all about new players! :o)

Interim Results

Highlights

· Signed up Air Products as strategic partner for Power-Up, the 0.5MW project in Germany
· £1.2 million, non-refundable licence agreed with Waste2Tricity International (Thailand) Ltd
· First order for a fuel cell received from Powerhouse Energy Group plc (PHE)
· MOU signed to accelerate fuel cell uptake in Thailand
· MOU signed with Allied New Technologies, Florida
· Hazard and Operability Study (HAZOP) for KORE system completed by Foster Wheeler
· KORE system components on order
· Cash balance at 30 April 2014: £4.96 million (30 April 2013: £8.90 million)


Post period achievements

· Commenced assembly of the first KORE system
· Permitting required for site integration at Air Products, Stade has begun

If all plans come to fruition then the next 6 months is looking very good indeed.

I won't be one of those saying the sp will be X amount by Xmas, but surely if all plans do come together the sp must in six months be well on the way to being plus 50p and I hope that is a very underestimated figure.

What I would like to see is a second automated extruder being ordered, as it would be prudent for AFC to be in position to be able to full fill orders as they come in, that way they would be ahead of the game.

This would also show confidence in both their product and their ability to interest potential customers.

And again the sp drops, which as said before hows that nothing short of contracts will do for the market.

Greekman - sadly true - contracts or no movement.

Hi Skinny, I have been put right re the Extruder, as the one already in place is easily capable of supply requirements for many months or years yet due to its capabilities.

It is the auto fixing process that need to be looked at.

MOU signed with Chang Shin Chemical for up to 5MW fuel cell power system

Agreement is the first significant breakthrough into the South Korean market to produce clean energy for grid supply

AFC Energy plc, the industrial fuel cell power company, is pleased to announce that it has signed a Memorandum of Understanding (MOU) with Chang Shin Chemical Co., Ltd ("Chang Shin"), a leading South Korean hydrogen supplier, for multiple fuel cell systems with a total potential generating capacity of up to 5MW.

This is the first commercial agreement signed by the Company in South Korea, one of the world's fastest growing markets for large scale, stationary fuel cell power generating systems.

AFC will harness hydrogen produced at Chang Shin's chemical works to generate clean energy with zero carbon emissions. The power will then be delivered into the South Korean electricity grid, thereby enabling Chang Shin to diversify its revenue stream and achieve greater value from its hydrogen.

In line with AFC's strategy, the deal will be structured as an energy supply contract under which it will install and operate its low cost fuel cell systems at Chang Shin's sites in return for long term fees. The agreement will be implemented in stages, the first of which will be a pilot KORE fuel cell unit at one of Chang Shin's gas processing facilities. Following evaluation from both AFC Energy and Chang Shin the intention is for the pilot unit to be scaled up to systems with an envisaged capacity of between 1 MW and 5MW. Importantly, Chang Shin estimates it has total available hydrogen for power generation significantly in excess of 5MW.

AFC and Chang Shin will work towards finalising a definitive contract within six months from the date of the MOU.

Ian Williamson, CEO AFC Energy, said: "This agreement is the first step towards a potentially major long term collaboration with Chang Shin. We have made this important breakthrough into South Korea just as this country's demand for fuel cell systems is set for strong growth. We look forward to working with Chang Shin and expect to clinch further new business in this market in the near future."

Sang Do Bae, Chairman of Chang Shin, said: "We are delighted to collaborate with AFC Energy to utilise their fuel cell systems in an environmentally friendly and sustainable process. It will enable us to harness our supply of hydrogen to generate saleable clean energy and meet stringent government regulations. It is our hope that this initial agreement will lead to the deployment of fuel cell systems in multiple Chang Shin plants in due course."

South Korea is one of the Company's key target markets, where fuel cells are being adopted rapidly by industry and utilities to reduce reliance on imported fossil fuels. Whereas the country is poor in natural resources, it has an abundance of available hydrogen and syngas that is produced as a byproduct by its large chemicals industry. In addition, demand is also being driven by South Korea's comprehensive incentive regime to boost the use of clean energy from fuel cells by large-scale producers and users of electricity.

Ends

Looking good, a breakthrough in South Korea is what we have all been waiting for.

SP not up much and sells now coming in.

I feel that this is due to many thinking that they will have around 6 months to see any further increase in the SP due to that time period being mentioned up to contracts being hopefully signed, with of course some profit taking.

As for myself, I feel that to be out now or to reduce holdings could be playing a very dangerous game as who knows just how many more MOU's are just round the corner.

Also we should not forget that South Korea is not the only country showing interest.