http://www.afcenergy.com/

Dawnay, Day Corporate Broking Research Note

Aim Admission Document

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

This is not the only company doing this....quite a few in the USA...but AFC looks a very good bet !.

Next news is possibly only 2 weeks away - I'm sure as usual AFC have been very busy behind the scenes. The link with Linc Energy in Australia may prove to very usueful in helping to promote AFC (see last RNS) I am happy to hold!

I think that the rns's are mixed up with Arsenal Football Club ! AFC....

Some real interest here this am,with trades in excwss of 17.5p earlier and settling around 17p. Is news on the horizon, as i can't find anything to ustigy such a leap?
cyril

Posted this on a competitors thread yesterday, re AFC and RHPS.

Several years ago when a subscriber to RHPS I ran a test portfolio on their tips, buying only shares in a handful of companies over the time period of about 3 years.
I found that well over 75% (can't recall the exact figure) of the shares tipped rose on opening, mainly due to the fact the MM's knew that many PI's would buy into the tip and the fact that these shares were by definition fairly illiquid. The sp would then fluctuate a bit during the day, usually closing below the days high, but still up.
I am sure many day traders feasted on this idea. So I would think if tomorrow follows the usual pattern, the sp will open higher than Fridays close, fluctuate a bit, then close up but lower than the days high.
The caveat is obviously that if AFC have a news issue the above will be blown out of the water.

As to RHPS tips, I found that it was helpful in that I would research a company mentioned, biding my time till the inevitable loss of interest dip and that is when I bought into the few companies I ended up investing in.

I just hope AFC is as successful a tip as SEO was a calamitous failure (I have strong feelings it will be).

And today re the sp and availability of shares due to someone stating that they can only get an online quote to sell 5,000 shares max......

I think they are just playing the market as usual. I expect they will try to make the most of today, with risers and drops to test those committed to AFC or just in for the short ride.
They will play to the fear of those new punters that are in due to the week-end tip.
I wonder how many will get in today without doing any research at all. They will be the most vulnerable to todays fluctuations.
The spread of 4.4% which is a bit less than normal might also be worth keeping an eye on.