PRESS RELEASE: Ceramic Fuel Cells Ltd.: Business Update and Quarterly Cash Flow Report
23.07.2008
Ceramic Fuel Cells Ltd. / Quarter Results/Interim Report
23.07.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.
=--------------------------------------------------------------------------
Ceramic Fuel Cells Limited, (AIM / ASX: CFU) a leading developer of high
efficiency and low emission microgeneration products for homes, today
provides a business update together with its quarterly cash flow report for
the period ended 30 June 2008. The cash flow report is available on
www.cfcl.com.au.
Operational Review
- Product development
The Company continues to make good progress with its product development
projects in its five key markets. All of the Company's European appliance
partners have now received NetGenPlusTM units for integration with high
efficiency boilers to create new micro combined heat and power (mCHP) units
for homes.
Leading Dutch energy company Nuon has placed an order for 50,000 mCHP
units, on the achievement of agreed performance targets. These targets
encompass physical weight and size, power and heat output, efficiency,
lifetime, CO2 savings and selling price of the mCHP unit. The Company has
made strong progress toward meeting key technical targets with recently
announced advances in fuel cell stack efficiency and lifetime.
Since the start of the year the Company has installed five NetGenPlusTM
units with its utility and appliance partners, in Germany, France and the
United Kingdom. These NetGenPlus units are being tested and operated in
real world conditions, connected to existing natural gas, water and
telecommunications lines and the local electricity grids.
The Company also plans to ship a NetGenPlus unit in August to its Japanese
partner Paloma.
CFCL is now designing and developing fully integrated mCHP units with its
appliance partners. The Company expects to complete its first fully
integrated units by the end of the year, before deploying larger numbers of
units during 2009.
- Manufacturing
In February 2008, CFCL announced that it is investing EUR12.4 million in the
construction of a manufacturing plant in Heinsberg, Germany for the
commercial production of its fuel cell systems. The plant will have an
initial capacity of 10,000 units per year.
The project is on budget and on schedule for the plant to be operational by
June 2009.
During the quarter the Company received full environmental and building
permit approvals for the plant from the appropriate German government
bodies. The Company also signed contracts and placed orders for the three
largest cost pieces of equipment, comprising furnaces, ink skids and
robotic assembly units.
- UK Powder Plant
The Company continues to produce zirconia powder from its ceramic powder
plant in Bromborough, Merseyside, UK. During the quarter the first shipment
of 3YSZ powder from the Bromborough plant was received in Noble Park,
Victoria. The powder passed all the Company's QC and powder
characterisation tests and has been used to make the Company's fuel cells.
CFCL has also continued to supply powder samples to several potential
customers. The Company believes the plant is capable of making a range of
high quality powders for several large and growing markets. The Company
also believes that in the medium term the plant and the associated
intellectual property can provide a range of options to maximise
shareholder value.
- Technical
On 1st July 2008 the Company presented its latest technical advances at the
8th annual European Solid Oxide Fuel Cell Forum, in Lucerne, Switzerland,
including:
- a 50% increase in cell power density, from 350 mW/cm2 in June 2007 to
500-650 mW/cm2 in June 2008;
- an increase in fuel cell stack lifetime. Degradation has reduced by 35%,
from 1.53% / 1000 hours reported in February 2008 to less than 1% / 1000
hours, when operating a 1kW stack in a test station at 750oC on natural
gas.
These results have been achieved through advances made in cells, glass
technology, interconnect metals, protective coatings on metals and contact
technology.
The Company continues to make improvements in efficiency and durability
which are the key technical targets required for commercial fuel cell
products.
Industry News
During the quarter there was a significant focus from policy makers on the
benefits of small scale power generation and mCHP technologies.
In late June 2008, the UK Prime Minister Gordon Brown announced a new
strategy for renewable and low carbon energy, including consultation on
financial incentives such as feed-in tariffs for decentralised energy and
microgeneration.
In July 2008, the German Government announced a target of boosting small
scale CHP to 25 per cent of Germany's power by 2020. To reach this target,
from September 2008 the German Government is introducing a subsidy of up to
EUR1,550 per kW for mCHP units. The subsidy conditions are designed to reward
mCHP units that can maximise electrical efficiency and operating hours. In
Germany mCHP units already qualify for a feed in tariff of about EUR0.05 per
kWh.
Whilst CFCL believes that its technology can create significant value for
customers even without subsidies, the Company welcomes Government policies
which boost the deployment of mCHP units.
Financial Review
Net operating cash outflow for the fourth quarter was A$4.3 million (GBP2.1
million), which was A$0.6 million (GBP0.3 million) higher than the previous
quarter, due to increased working capital requirements. Final quarter
expenditure on research and product development was lower than the prior
quarter.
During the fourth quarter cash outflow from investing activities was A$1.3
million (GBP0.6 million). This largely related to building the Company's
manufacturing plant in Heinsberg, Germany. Capital expenditure for the full
year was A$6.9 million (GBP3.3 million). The forecast cost of the plant is in
line with the budgeted cost of EUR12.4 million (A$20 million / GBP9.8 million)
announced in February 2008.
Net operating cash outflow for the full financial year from 1 July 2007 to
30 June 2008 was A$17.3 million (GBP8.4 million), compared to A$15.3 million
(GBP7.5 million) in the prior year. Spending increased as the Company built
and shipped NetGenPlus units to its product development partners,
commissioned its UK powder plant and began investing in its German
manufacturing plant.
During the quarter the Company raised A$14.7 million (GBP7.0 million) before
costs via a placing of new shares to UK and European institutional
investors.
Total cash and financial assets at 30 June 2008 were A$43.3 million (GBP21.1
million).
Contact:
PR Partner GmbH, Simon Barber, Tel.: +49-89-383985-16, Ohmstraße 8, 80802
München, sbarber@prpartner.de
23.07.2008 Financial News transmitted by DGAP
=--------------------------------------------------------------------------
Ceramic Fuel Cells Ltd. / Quarter Results/Interim Report
23.07.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.
=--------------------------------------------------------------------------
Ceramic Fuel Cells Limited, (AIM / ASX: CFU) a leading developer of high
efficiency and low emission microgeneration products for homes, today
provides a business update together with its quarterly cash flow report for
the period ended 30 June 2008. The cash flow report is available on
www.cfcl.com.au.
Operational Review
- Product development
The Company continues to make good progress with its product development
projects in its five key markets. All of the Company's European appliance
partners have now received NetGenPlusTM units for integration with high
efficiency boilers to create new micro combined heat and power (mCHP) units
for homes.
Leading Dutch energy company Nuon has placed an order for 50,000 mCHP
units, on the achievement of agreed performance targets. These targets
encompass physical weight and size, power and heat output, efficiency,
lifetime, CO2 savings and selling price of the mCHP unit. The Company has
made strong progress toward meeting key technical targets with recently
announced advances in fuel cell stack efficiency and lifetime.
Since the start of the year the Company has installed five NetGenPlusTM
units with its utility and appliance partners, in Germany, France and the
United Kingdom. These NetGenPlus units are being tested and operated in
real world conditions, connected to existing natural gas, water and
telecommunications lines and the local electricity grids.
The Company also plans to ship a NetGenPlus unit in August to its Japanese
partner Paloma.
CFCL is now designing and developing fully integrated mCHP units with its
appliance partners. The Company expects to complete its first fully
integrated units by the end of the year, before deploying larger numbers of
units during 2009.
- Manufacturing
In February 2008, CFCL announced that it is investing EUR12.4 million in the
construction of a manufacturing plant in Heinsberg, Germany for the
commercial production of its fuel cell systems. The plant will have an
initial capacity of 10,000 units per year.
The project is on budget and on schedule for the plant to be operational by
June 2009.
During the quarter the Company received full environmental and building
permit approvals for the plant from the appropriate German government
bodies. The Company also signed contracts and placed orders for the three
largest cost pieces of equipment, comprising furnaces, ink skids and
robotic assembly units.
- UK Powder Plant
The Company continues to produce zirconia powder from its ceramic powder
plant in Bromborough, Merseyside, UK. During the quarter the first shipment
of 3YSZ powder from the Bromborough plant was received in Noble Park,
Victoria. The powder passed all the Company's QC and powder
characterisation tests and has been used to make the Company's fuel cells.
CFCL has also continued to supply powder samples to several potential
customers. The Company believes the plant is capable of making a range of
high quality powders for several large and growing markets. The Company
also believes that in the medium term the plant and the associated
intellectual property can provide a range of options to maximise
shareholder value.
- Technical
On 1st July 2008 the Company presented its latest technical advances at the
8th annual European Solid Oxide Fuel Cell Forum, in Lucerne, Switzerland,
including:
- a 50% increase in cell power density, from 350 mW/cm2 in June 2007 to
500-650 mW/cm2 in June 2008;
- an increase in fuel cell stack lifetime. Degradation has reduced by 35%,
from 1.53% / 1000 hours reported in February 2008 to less than 1% / 1000
hours, when operating a 1kW stack in a test station at 750oC on natural
gas.
These results have been achieved through advances made in cells, glass
technology, interconnect metals, protective coatings on metals and contact
technology.
The Company continues to make improvements in efficiency and durability
which are the key technical targets required for commercial fuel cell
products.
Industry News
During the quarter there was a significant focus from policy makers on the
benefits of small scale power generation and mCHP technologies.
In late June 2008, the UK Prime Minister Gordon Brown announced a new
strategy for renewable and low carbon energy, including consultation on
financial incentives such as feed-in tariffs for decentralised energy and
microgeneration.
In July 2008, the German Government announced a target of boosting small
scale CHP to 25 per cent of Germany's power by 2020. To reach this target,
from September 2008 the German Government is introducing a subsidy of up to
EUR1,550 per kW for mCHP units. The subsidy conditions are designed to reward
mCHP units that can maximise electrical efficiency and operating hours. In
Germany mCHP units already qualify for a feed in tariff of about EUR0.05 per
kWh.
Whilst CFCL believes that its technology can create significant value for
customers even without subsidies, the Company welcomes Government policies
which boost the deployment of mCHP units.
Financial Review
Net operating cash outflow for the fourth quarter was A$4.3 million (GBP2.1
million), which was A$0.6 million (GBP0.3 million) higher than the previous
quarter, due to increased working capital requirements. Final quarter
expenditure on research and product development was lower than the prior
quarter.
During the fourth quarter cash outflow from investing activities was A$1.3
million (GBP0.6 million). This largely related to building the Company's
manufacturing plant in Heinsberg, Germany. Capital expenditure for the full
year was A$6.9 million (GBP3.3 million). The forecast cost of the plant is in
line with the budgeted cost of EUR12.4 million (A$20 million / GBP9.8 million)
announced in February 2008.
Net operating cash outflow for the full financial year from 1 July 2007 to
30 June 2008 was A$17.3 million (GBP8.4 million), compared to A$15.3 million
(GBP7.5 million) in the prior year. Spending increased as the Company built
and shipped NetGenPlus units to its product development partners,
commissioned its UK powder plant and began investing in its German
manufacturing plant.
During the quarter the Company raised A$14.7 million (GBP7.0 million) before
costs via a placing of new shares to UK and European institutional
investors.
Total cash and financial assets at 30 June 2008 were A$43.3 million (GBP21.1
million).
Contact:
PR Partner GmbH, Simon Barber, Tel.: +49-89-383985-16, Ohmstraße 8, 80802
München, sbarber@prpartner.de
23.07.2008 Financial News transmitted by DGAP
=--------------------------------------------------------------------------
Copyright (c) 2007 Dow Jones & Company, Inc.