Independent Technology Review

RNS Number : 5272I

AFC Energy Plc

16 June 2011

 



16 June 2011

AFC Energy PLC

('AFC Energy' or the 'Company')

Independent Technology Review Highlights

AFC Energy's strong progress in commercialising its fuel cell systems

AFC Energy PLC, the developer of low cost alkaline fuel cells, is pleased to announce that it has received a positive independent interim review of its technical activity from Dr Jon Helliwell, Project Manager, Fuel Cell Applications at the Centre for Process Innovation ("CPI").

AFC Energy provided Dr Helliwell with complete, unrestricted access to the Company and its technology for the purposes of the assessment and he was able to examine each area in detail. CPI previously published a review of AFC Energy's technology in November 2010.

In summary, the CPI's report states that there have been a number of significant developments since the last review.

The Company has:

·      Produced a top level technology strategy for the next three years and linked all of its sub-plans and control systems to it;

·      Frozen the basic design of its fuel cell system. The Beta System concept allows optimisation of individual components without the need to introduce major system changes. According to CPI it also, quite clearly, provides the scalability that the company needs.

·      Developed electrolyte, fuel and oxidant handling systems which have the potential to be very low cost.

·      Significantly improved its electrode performance without impacting on the overall design of the Beta system.  CPI believes that the new designs will also enable the company to produce more durable systems. The development fits the company ethos of using existing volume processing methods wherever possible;

·      Developed a comprehensive cost model based upon a bill of materials enabling it to gain detailed understanding of its cost base over time. In discussions with the technical team, CPI found that all team leaders were familiar with the cost model, how it worked, the numbers it contained and the future cost predictions that could be obtained from it. Further, they were all clearly using it as a tool to assess whether a particular development made sense, not only from a technology point of view, but also from a cost point of view.

·      Assessed the barriers to CE-accreditation and CPI has seen no major issues with the control and electronics aspects of the system and is highly encouraged by the moves towards CE-accreditation: further evidence of a clear focus on commercialisation.

·      Conducted a "freedom to operate" intellectual property search which demonstrates that it has a real opportunity to establish a commanding presence in the area of fuel cell technology.

·      Improved information systems. It was quite clear during the review process that the quality of information available on the development plans, costs, technical milestones and other areas of the business was significantly higher than in previous visits. The information systems within the business are now greatly improved and the company is clearly maturing as it grows.

The detailed content of the report is commercially sensitive and the AFC Energy board has decided that to make a more detailed version of it available would not be in the overall best interests of the Company.

Dr Jon Helliwell, Project Manager, Fuel Cell Applications, CPI said:

"I was given full access to the technology and commercial plans for the business and believe that they offer a robust route to full commercialisation. I am encouraged by the progress that has been made. It is quite clear that the Company is maturing as it increases its focus on the delivery of its technical and commercialisation programme. It has increased its experience base in manufacturing and it is ensuring that it captures all the potential value from its technology programme. I firmly believe that it will deliver its technology and commercialisation plans."

Ian Balchin, AFC Energy's Executive Deputy Chairman, said:

"The purpose of the independent review is to demonstrate the extent to which AFC Energy is making technical progress towards its goal of the lowest cost alkaline fuel cell system. This latest report is the fifth to be carried out, and as with previous reviews the highlights give a glimpse into the rapid and substantial progress being made by our hard working team."

For further information, please contact:

AFC Energy plc Tim Yeo, Chairman Ian Balchin, Deputy Chairman David Marson, Finance Director	[phone]
Allenby Capital Limited                   Brian Stockbridge Alex Price	[phone]
Threadneedle Communications John Coles Fiona Conroy	[phone]

About AFC Energy 

AFC Energy is a world leading developer of low-cost alkaline fuel cells that uses hydrogen to produce clean electricity. AFC Energy's technology is focused on large-scale industrial applications and the objective of producing the lowest possible unit cost electricity. AFC Energy's alkaline fuel cell has the capability to significantly reduce carbon emissions for businesses of all shapes and sizes. The technology is the most efficient method of converting hydrogen into electricity, and by-products, such as low grade heat and water, further increase energy efficiency and commercial value.

Please visit our website for further information, www.afcenergy.com.

 

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