http://www.afcenergy.com/

Dawnay, Day Corporate Broking Research Note

Aim Admission Document

Landmark agreement signed for stationary fuel cell systems in South Korea

Breakthrough deal, supported by a leading Korean investment bank, is expected to be worth $3.75m, increasing up to $15m upon satisfactory completion of the first phase

AFC Energy, the industrial fuel cell power company, is pleased to announce that it has entered into a Heads of Agreement with Daniel Inc., a fuel cell focused power plant owner and development company in South Korea, for an initial 1MW fuel cell system with a follow-on option for a further 3MW project making a total potential sales value of approximately $15 million.

The Company believes this agreement, once ratified with a formal contract, will represent the largest sale in revenue terms by any British fuel cell manufacturer in South Korea for a stationary system in an industrial setting. It will also represent the biggest deal won by AFC Energy since its inception in 2006.

The initial 1MW alkaline fuel cell system will be deployed in stages and will include a long term maintenance agreement. Under the terms, a deposit of $1.25 million will become payable to AFC Energy upon signing of the formal contract and supply agreement, before deployment of the system commences. The formal contract will also include the opportunity for a follow-on order for a 3MW system at a second site, depending on performance.

The first system will use a mixture of liquefied natural gas (LNG) and biomass gas as its primary energy source to generate electricity. AFC Energy will install, operate and maintain its low cost fuel cell systems at Daniel Inc's. site and the project will benefit from South Korea's clean energy incentive program that focuses on the aggressive deployment of fuel cells by large electricity producers and users.

This project has been facilitated with the assistance of KDB Daewoo Securities ("Daewoo"), South Korea's leading investment banking firm, acting as introducer for AFC Energy. Daewoo have indicated that going forward they will continue to support the Company in a referral function for other client companies and will receive appropriate compensation.

This agreement is the second major advance made by AFC Energy in South Korea and follows a Memorandum of Understanding announced earlier this week with Chang Shin Chemical Co., for the supply of multiple fuel cell systems with a total potential generating capacity of up to 5MW. In addition, the Company is already executing a Euro 6.1 million EU-backed flagship project, Power-Up, with Air Products at a major chemicals complex in northern Germany. It also has an ongoing strategic project with AkzoNobel at their site in Bitterfeld, Germany.

Hi Skinny,

Not many of us stalwarts left on here.

I like these two comments most.

1 According to Kepco, the state-owed Korean electricity utility, the total installed capacity for stationary fuel cell systems is estimated to increase from 306MW at present to approximately 780MW in 2015 and almost double again by 2020.

I should hope that AFC take a decent slice of the increase between now and 2020.

2 Upon successful implementation of the 1 and 3MW phase projects, there will be follow up ventures which will be the main ones in our planned portfolio and we are confident to say that AFC's role would grow along with our expansion."

3 Many (great word many, much better than few) of our other clients have already demonstrated a clear interest in AFC Energy's fuel cell systems and we look forward to making further introductions of the technology to the region.

So the AFC rocket lifted on Monday and now looks like nothing (probably should not temp fate) will stop it.

Greekman, lets hope so - finally!

Shhhhh! :o)

I have just sold a few at .30.5p.

Strange I know, but I have been caught out before by not banking a profit.

What's a profit?

About 4 weeks ago I bough some AFC in my ISA account, the amount I sold today was the equivalent number of shares from my nominee account.

I looked at my buy 4 weeks ago as a temp increase, and did it this way instead of a bed and isa as I expected the sp to rise and did not need the cash at the time.

As for the profit, it will pay for my August holiday in Greece, so for a change my timing worked out well.

Well done - nice when it works like that.

Cheers Skinny,

A few good decisions among the bad does help.

Sp on it's way down as expected due to profit taking.

I would think that there should be some media coverage tomorrow and over the weekend, there was some after the MOU earlier in the week, but not much.

Just heard on the news that Sainsburys have taken one of their stores off the national grid and are now powering that store from energy generated from food waste.

Sainsbury's already collects all its food waste and many other companies have to either collect or separate food waste from general waste, so no doubt some of these companies will start to look toward cheaper on or near site energy.

In the case of the Sainsbury store it is now connected to a power plant by a 1 mile long underground cable.

I wonder if they have heard about AFC and whilst appreciating that stores are not a priority for AFC (remember the John Lewis update) who knows who and what an AFC Fuel cell will power in the not too distant future.

The future for energy supply is becoming more and more expensive, but with a little help from AFC it might not be quite as expensive.

http://www.extremetech.com/extreme/183690-ceramic-fuel-cells-could-be-the-future-of-green-at-home-power-and-heat-generation

Appointment of new Finance Director

Last 2 trades both marked as sell but it looks more like the first was a sell and the second a few mins later was a buy back into an ISA.

08:42:42 17.29 86,667 O 17.25 17.50 Sell 20,348 Total sell 187,349
08:42:36 17.25 86,957 O 17.25 17.50 Sell 20,348 Total sell 100,682

Yours?

No not mine, although if I had a few spare quid I might consider topping up a bit, although for a so called energy company, the only certainty is that the continual decline in the sp is sapping mine.

Yesterday I sent the following e-mail to AFC,

Whilst I appreciate that the company can not give sp sensitive information to individuals, could the company at least put out a news release re the continual downward trend of the share price.

Many investors feel as I do that we are not being informed adequately.

EXAMPLE.......An update on the fuel cell trials which last gave the 12 month results is not adequate.

As the e-mail address is not easy to find, see below,

info@afcenergy.com.An e-mail

I received a reply stating that the e-mail had been forwarded to EW, I will update when received.

And the sp continues its downward trend again today!!!!!!!!!!!!!

I keep reading on another site that the drop in the SP is down to Scaremongering, but I feel the main ingredients of scaremongering is the current and ever decreasing share price.

As AFC are the largest holding in my portfolio, being nervous re how this will eventually turn out is starting to become par for the course.

Saying that, it seems strange to me that the offer price was 13.25p when sells were 293,000 and went upward to 13.50 then to 14.00p as the sells increased to 1,050,370 without any recorded buys in between, normally as sells increase with no comparative buys the offer price tends to drift downward.

Probably wrong (I usually am) but it looks to me like the MM's have an order to fill and are putting off us poor PI's as usual.

The ways of the market are indeed strange.

Did you get a reply to your email?

Hi Skinny,

No, I was going to wait till week-end to post, but rest assured I will post if I do receive a reply.

Hopefully they are too busy and its not a case of more mushroom treatment!

NOTE............I once grew mushrooms and found that if you cover them too much in the brown stuff they wither and die.

Yes - nobody minds a bit of bull, but when the smell becomes over powering.....!