http://www.afcenergy.com/

Dawnay, Day Corporate Broking Research Note

Aim Admission Document

Morning Niceonecyril,

Glad you looked into things over the week-end. I fully agree with you about the Howard White connection and have posted such many times on the iii thread.
The link with H W is my main niggling worry. I was badly bitten by the Stanelco fiasco, so one bitten twice shy as they say.
Did you look at the iii thread re AFC. If you don't want to I will post several interesting links with info on AFC, but if you look at that thread yourself it will give a better balanced view as some doubts do surface.

Regards Greek.

GM,i'm going to take a speculative punt as i feel its potential is enormous,
while keeping in mind my SEO experience.
The 5 month timescale seems to be about right for delivery for the 50k unit
which is the size of a 12mtr cshipping container,then LINC(whom i am impressed with)will give it a good testing so about 12month and we should know?
cyril

Yes I think it is well worth a punt, but not much more at this stage. AFC look to have fantastic potential, but I think you are right being cautious, as I am. I have seen too many so called, 'Fortune Tomorrow' companies fail to put many of my eggs in this particular basket.
But the way they appear to be moving, I think within 3 to 6 months we will have a far better read of where they are headed.

Prepare for a Fossil-Fuel Miracle.

This was a headline to an article in Todays Daily Telegraph.

Many of the experts in this field are coming round to the view that natural gas could be 'The Fuel of the Future'.
This is due to new drilling techniques, which would make less reliance on countries such as Russia, Qatar and Iran.
It rates it as one of the cleanest, cheapest and also of huge availability.
It goes on the discus its competitors of such as Coal, Nuclear, Wind, Solar and many other.
I states that the US alone has enough to supply 100 year of Natural Gas.
The main downside to Natural Gas is that it takes vast amounts of water to be pumped into the shale to force the gas out. Often chemicals are added, which can cause the problem of the mixture polluting any nearby water supply.
Resistance to the drilling is spreading fast.
Concern is growing, so there is going to be legislation to improve matters.

I wonder if UCG will be looked at in a deeper vein (no pun intended) than it is now. There are two different types of extraction used, one using water (I believe this is the main method) the other generally uses oxygen or enriched air for gasification.

See Introduction to UCG.
http://www.ucgp.com/key-facts/basic-description

No water is used (according to the Allenby note on UCG) in the system where AFC are mentioned so presumably it is the second method.

This would obviously nullify any water contamination problems.

Don't have time to expand further as just off abroad.

No doubt others with more tech nohow can explain/correct any errors in my summing up.

But if I am right re the none water use, this looks like it could be the 'Holly Grail' for AFC.

Regards Pond.

Just had time to dig this out from Linc Energy.

It does mention water is used (apologise for misleading) but it appears that it does not used a chemical mixture, so still pollution problem looks to be solved. Clarification anyone please.
http://www.lincenergy.com.au/ucg.php

This company building very nicely.
AFC Energy Plc
27 January 2010






AFC Energy PLC

('AFC Energy' or the 'Company')


AFC Energy announces an order from Centrica




AFC Energy PLC, the developer of low cost alkaline fuel cells, is pleased to announce that it has secured an order from Centrica PLC reserving 250kW of fuel cell systems for use in a flagship project.

AFC Energy's fuel cells will provide Centrica with a source of carbon-free electricity generation with a conversion efficiency into electricity of up to 60%, far greater than any fossil fuel generation on the market today. The commercial terms of the agreement are to be agreed once AFC has completed development of its 50kW fuel cell system in 2011.

Ian Balchin, AFC Energy's Chief Executive, said:

"We are delighted to receive this order now which effectively gives Centrica an option over our future capacity when we start to roll out our 50kW fuel cell systems. We look forward to working with Centrica and the prospect of installing our fuel cell systems as part of its project."

Brian Amos from Centrica plc added:

"We have looked at a number of technologies that have the potential to generate low-cost electricity with zero carbon dioxide emissions and the fuel cell system from AFC Energy has the potential to meet our requirements for a specific project. We look forward to working with AFC Energy to deliver this solution."
cyril

market dosen't seem over excited...

The market seems to be correcting itdelf as predicted,so any Blue is a good result? This is New Technology and some way off proving up? I think roughly 4 months before the 1st 50k unit is delivered allow time for testing and if it turns out successful,it would become very sort after stock?
Ita a punt with a fair chance of making the Tech work,we should have a better understanding by end of yesr.
cyril

Balerboy/Cyril,

As you say. I put his entirely down to he fact that it is all dependent on the 50Kw development success, and the mention of 2011, so still some ifs.
But as 2011 is only a year away, if punter want a punt, leaving it much longer could be very risky.
I do like the wording, 'The commercial terms of the agreement are to be agreed once AFC has completed development of its 50kW fuel cell system in 2011'.

Not the agreement is reliant on the completed development, but the terms are reliant. Although I can't imagine what would happen to the deal IF the development of the 50Kw system failed. So although Centrica are obviously very confident in the ability of AFC, it is to me strange wording indeed.

Not ramping AFC, as with these ifs, I feel the price is not much below it's true value.

Of all the fuel cell companies, this looks like the best bet.

The Centrica connection has now been mentioned by,

Hoodless Brennan.
RTT News.
Renewable Energy Focus.
Wall Street Journal.

So a nice spread of news already, with no doubt more to come.
Rarely see a company the size AFC attracting such publicity.
I appreciate the attraction is due to the well known name of Centica, but any association with such well known companies can only bring the name AFC Energy to the fore.

The radar of publicity, is catching AFC nicely in it's glare.

but can it perform like you GM, when needed???

Balerboy,

You ask it can perform like me when needed.

Look at it this way, I am just out of my prime (well I think so, but not sure what my wife thinks) as I keep telling her she has had my best years.
But seriously, AFC are a young, up and coming (no jokes please) company.
I hope when/if the orders continue they will rise to the challenge to perform, (look be serious).
There are still a few ifs, which will continue till these cells prove themselves, but the ifs are getting forever smaller.

Nice increase again.....could be the king of fuel cell stocks this one...

Posted on a competitors thread by Stocasity.

It is an interview with Peter Bond CEO of Link Energy.

All facts, no hype.

http://abnnewswire.net/multimedia/en/62197/VIDEO:_Peter_Bond_CEO_Of_Linc_Energy_Speaks_with_Brian_Carlton_on_Underground_Coal_Gasification.html

This is an excellent interview. In my opinion, a must read, well worth it's 10 minute length.

In todays Telegraph it is reported that Barrack Obama wants bio-fuels to be judged on their full environmental impact. For example, it is claimed that corn based ethanol thought to produce 50% of emissions produced by fossil based fuels, if the effect of such things as forest clearance needed to grow the required corn crop is taken into consideration, the actual reduction is 20%.
It is suggested that all fuels and their systems of production are also looked at using the same criteria.

I wonder what the true carbon footprint of other so called, new clean technologies are, solar (panels manufacture/disposal), wind (manufacture/transportation/disposal) and several others.

As to the AFC fuel cell system, obviously there is still similar environmental costs, but I wonder given the figures we often see of 80 to 90%, reductions, which have often been compared with other electricity producing concepts, what the true savings really are.
I would bet the savings (compared) are even better than first thought.
These other concepts, (mainly wind power) savings are usually touted by not just the producers, but by Government bodies.
As we all suspect, these savings are now being questioned more than ever.
But as yet no government is touting figures for the AFC system. So those figures are more likely to be near the truth, and not be tainted with spin.

Just a thought

Could UCG benefit from Shale Gas Danger.

In todays Daily Telegraph it is reported that Gazprom scorns shale gas as 'Danger to drinking water'.

I muted this a few weeks ago and it appears the dangers are starting to be taken more seriously.

Gazpom has attacked the idea that new US reserves of shale gas (hailed a game changer) will harm it's dominance as the worlds biggest producer, warning the energy source is environmentally unsound, of course they have a vested interest, but the evidence is gathering pace.

But the possible environmental effect is gaining momentum.

The danger looks to be the polluting of the water table.

As all the majors are heavily involved in it's production and are pouring zillions of wonger into these projects just imagine the cost/loss to them if the environmental issue wins the day. But more important would be the catastrophic loss of huge amounts of gas, which the world could not afford to loose.

As UCG is cleaner, cheaper and far more environmentally friendly, it could be good news for UCG and of course AFC.

Any reference to UCG and AFC is obviously my view and is not mentioned in the daily Telegraph.

RNS. Great news. Looking good.

If the patents hold .....you might be able to add a zero to the present sp.....potential not recognized by the city yet...

RF If the patents hold,are you saying their's a problem?
Greekman, yes excellent news and IB is a dap hand at keeping the markets informed via RNS's.
cyril