Company Announcement
Preliminary Results
12 Months Ended 30 June 2010
Ceramic Fuel Cells Limited, (AIM / ASX: CFU) a leading developer of high efficiency and low emission electricity generation units for homes and other buildings, today announces its preliminary results for the year ended 30 June 2010.
Highlights in the period and year to date:
Customers and Products
§ BlueGen modular power and heat generator (power and hot water)
- Obtained CE approval in April 2010
- Orders for 51 BlueGen units from leading energy companies and other foundation customers in many large markets: Germany , United Kingdom , Switzerland , The Netherlands, Japan , Australia and the USA
- Includes order for 30 units from the Victorian Government’s Office of Housing. Expect to finalise the order conditions in August 2010
§ Integrated mCHP products (power, hot water and space heating)
- First units installed with partners in Germany , UK and France
- In discussions to confirm details of next orders
§ Common Fuel Cell Module, with the World’s Highest Electrical Efficiency
- CFCL Gennex fuel cell module is the core technology in both the integrated mCHP and BlueGen products
- All of the integrated mCHP and BlueGen products have achieved initial electrical efficiency of between 59.3% and 62.4%
- Repeatable world-leading electrical efficiency in a range of real world conditions in many markets
§ As at 19 August, six integrated mCHP units and 12 BlueGen units operating with customers in seven countries
§ BlueGen Distribution in Australia
- Appointed non-exclusive distributors of the BlueGen product: green retailer Neco, based in Melbourne, and Harvey Norman’s Commercial Division, in New South Wales and the ACT.
- Initially marketing to commercial customers like local Councils, State Governments, ‘green building’ developers and energy utilities.
Large Carbon Savings
§ CSIRO Report confirms significant carbon savings potential from BlueGen
§ In Victoria each BlueGen unit can save up to 14 tonnes of carbon per year (1.5 kW continuous operation, replacing a gas hot water unit).
Prestigious German Innovation Award
§ Awarded the Innovation NRW.INVEST AWARD for 2010, by the Government of North Rhine-Westphalia in Germany
§ CFCL was honoured to receive the 2010 award for Innovation. The 2009 winner of the Innovation award was Research in Motion, the developer of the BlackBerry device.
§ Australian Ambassador to Germany , Mr Peter Tesch: “I am convinced that Ceramic Fuel Cells will shape the world market and especially the German market of private energy supply."
Feed-in Tariffs
Victorian Government Feed-in Tariff Review
- Victorian Government is reviewing the expansion of feed-in tariffs to include low-emissions technologies like fuel cells
- A feed-in tariff is a rate paid for electricity fed back into the electricity grid from designated renewable and low emission electricity generation sources
- CFCL welcomes the Government’s review and has made a submission, which is available at www.cfcl.com.au.
United Kingdom Feed-in Tariff
- In April 2010 the UK Government introduced a feed-in tariff for small scale power and heating products
- Energy retailers pay homeowners 10 pence per kWh generated plus an additional 3 pence per kWh exported to the grid
- To be eligible for the tariff, the product must be certified under the Microgeneration Certification Scheme (MCS). CFCL is working with industry partners to apply the relevant MCS standards to the Company’s products. CFCL expects to achieve MCS certification during September 2010.
Manufacturing
Heinsberg, Germany
- Completed construction of a plant for the volume assembly of fuel cell stacks. The plant includes automated and semi-automated equipment.
- All assembly processes are fully commissioned and operating, including the ink mixing equipment and the robotic seal dispensing and assembly machines
- Currently making fuel cell stacks at the plant using a lower volume furnace
- Also continuing to make stacks in Melbourne to meet current demand
- To increase the volume of stacks the Company will need to use its larger furnaces already installed at the Heinsberg plant. CFCL is currently working with the supplier of the large volume furnaces to ensure the furnaces will produce fuel cell stacks in larger volumes at acceptable quality standards
BlueGen Assembly
- CFCL examined several alternatives for BlueGen assembly, including toll manufacturing
- To preserve product quality whilst reducing costs, CFCL is assembling complete BlueGen units in-house
- BlueGen assembly currently in Melbourne ; from early 2011, BlueGen assembly in the Heinsberg plant
- CFCL is building BlueGen units now to meet expected customer demand
Powder Plant
- Plant in the UK uses proprietary process to make high quality ceramic powders.
- The Plant is currently making zirconia powders to be used in the Company’s fuel cells. External customers also evaluating samples for biomedical, refractory and fuel cell applications.
Licence Agreement with NexTech
- In June 2010 CFCL entered a licence agreement with USA-based NexTech Materials, Ltd for NexTech to commercially offer solid oxide fuel cell interconnect coating solutions based on CFCL’s patented formulations
- CFCL has patented a technology which protects metal interconnect plates from chromium poisoning. This solution, which CFCL uses in its own fuel cell products, is useful for other developers of solid oxide fuel cells.
- Based in Ohio , NexTech Materials is a leading provider of technology solutions for the solid oxide fuel cell market. NexTech’s customers are located in more than 35 countries and include fuel cell researchers, developers and manufacturers.
- CFCL will receive a royalty from NexTech Materials’ sales, creating an additional revenue stream from CFCL’s existing intellectual property.
- CFCL’s Fuel Cell Interconnect Device is patented in the United States , Japan , Europe ( France , Germany , Italy and the United Kingdom ), Australia and New Zealand .
Financial
Year to 30 June 2010 (unaudited FY10 results)
- Revenue from Operations: AUD 2.0 million (GBP 1.2 million)
- Up 21 percent from FY09: AUD 1.7 million (GBP 1.0 million)
- Net operating cash outflow: AUD 17.2 million (GBP 9.9 million)
- FY09: AUD 16.6 million (GBP 9.5 million)
- At 30 June 2010 the value of BlueGen items in inventory was AUD 1.0 million (GBP 0.6 million).
- Operating costs: AUD 21.5 million (GBP 12.4 million)
- In line with FY09: AUD 21.2 million (GBP 12.2 million)
- Net loss: AUD 19.7 million (GBP 11.3 million)
- FY09: AUD 42.2 million (GBP 24.3 million)
- Cash balance at 30 June 2010: AUD 11.5 million (GBP 6.6 million)
- Includes AUD 2.6 million (GBP 1.5 million) in bank account pledged to support guarantees.
Fundraising
Fundraising announced 19 August 2010, to take the Company to the next stage of its commercial development, including for working capital and to scale up production of its fuel cell products to meet expected future demand. See separate announcement.
