PRESS RELEASE: Ceramic Fuel Cells Ltd.: Business Update and Quarterly Cash Flow Report
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 =--------------------------------------------------------------------------
(END) Dow Jones Newswires
July 23, 2008 02:00 ET (06:00 GMT)
© 2008 Dow Jones News
