CFU Ceramic Fuel

 

TIDMCFU 
 
RNS Number : 9598F 
Ceramic Fuel Cells Limited 
22 January 2010 
 
 
 
 
 
22 January 2010 
 
 
 
 
Ceramic Fuel Cells Limited 
 
 
Quarterly Cashflow Report and Trading Update 
 
 
Ceramic Fuel Cells Limited (AIM / ASX: CFU) a leading developer of high 
efficiency and low emission power products for homes, today released its 
quarterly cashflow report for the period ended 31 December 2009. 
 
 
Operational Review 
 
 
Integrated mCHP 
 
 
During the December quarter the Company achieved its target of installing 
complete integrated power and heating (mCHP) units. The first integrated units 
were installed with appliance partners in Germany, the United Kingdom and France 
before Christmas.  This follows the successful completion of field trials of 
semi-integrated units in 2008-09. 
 
 
In these partnerships Ceramic Fuel Cells supplies its Gennex fuel cell modules 
to appliance partners, which integrate them with high efficiency boilers into 
single units which convert natural gas into power, hot water and space heating 
for homes. These units are highly efficient and have low emissions. 
 
 
The functionality and performance of the integrated units will be tested to the 
requirements of a commercial product.  The Company plans to build and deploy an 
increasing number of units with its partners during 2010-11. 
 
 
BlueGen 
 
 
In parallel with the integrated mCHP product, the Company has developed a 
modular product called BlueGen. BlueGen uses the same Gennex fuel cell module to 
generate power and heat for hot water. It is ideal for customers and markets 
that do not need space heating, or already have an adequate space heating 
solution.  One BlueGen unit can provide about double the power the average home 
needs - excess power can be exported to the grid - plus hot water for an average 
family's needs. 
 
 
During the quarter the Company received its first orders for BlueGen units. 
 
 
VicUrban, the Victorian Government's sustainable urban development agency, will 
install three BlueGen units in high profile housing development sites in 
Melbourne. The first unit was installed before Christmas at VicUrban's 'Aurora' 
development in Melbourne's north.  The Company is currently finalising safety 
approvals and arrangements to connect the unit to the power grid and begin 
generating and exporting power from the unit. Origin Energy, one of the largest 
energy retailers in Australia, has also joined in the demonstration project as 
VicUrban's selected energy retailer. Origin Energy will buy back excess 
electricity generated by the VicUrban BlueGen units. 
 
 
Another leading energy retailer, Energy Australia, has also ordered a BlueGen 
unit for a showcase sustainability house in the Sydney suburb of Newington. The 
Company expects to deliver the BlueGen unit to Energy Australia by the end of 
March. 
 
 
In November the Company appointed Neco, one of Australia's leading green 
retailers, to distribute BlueGen units in Australia. The non-exclusive agreement 
gives Neco the right to market, sell, install and service BlueGen units 
throughout Australia. Neco is currently preparing its BlueGen product offering 
and a range of purchase options. The Company is also working with Neco to 
establish the BlueGen product service and support infrastructure. 
 
 
In November the Company also received an order for a BlueGen unit from Paloma in 
Japan. Paloma is a leading global home heating manufacturer and owner of the 
Rheem, Solahart and Raypak brands. The BlueGen unit will be installed in 
Paloma's warehouse and sales office in Sapporo, Japan, by the end of March. 
 
 
The Company expects to receive European 'CE' product certification for BlueGen 
by the end of March. Local approvals in Australia and other markets will follow 
the 'CE' approval. 
 
 
The Company has received very strong interest from prospective BlueGen customers 
and sales partners in many markets around the world.  The Company's current 
focus is to sell BlueGen products in markets where it already operates or has 
experience - mainly Europe, Australia, and Japan. As the BlueGen product 
matures, the Company will expand into other large global markets.. 
 
 
German manufacturing plant 
 
 
In early October the Company officially opened its high volume manufacturing 
plant, one of the first in the world for the volume production of solid oxide 
fuel cell stacks.  The manufacturing plant is located in an existing 4,200m2 
building in the Industriepark Oberbruch, 40 minutes' drive from Dusseldorf in 
the North Rhine-Westphalia region of Germany. 
 
 
The plant was officially opened by Dr Jens Baganz, State Secretary for the 
Ministry of Economic Affairs and Energy of the State of North Rhine-Westphalia, 
before more than 100 guests, including Government representatives and key 
customers, suppliers, investors and media. 
 
 
At the opening of the plant the equipment, including state-of-the-art robotic 
assembly machines, was commissioned and operational. During the quarter the 
Company continued a detailed 'technology transfer' process, to ensure the German 
manufacturing equipment and processes match the specific fuel cell stack design 
requirements of the Melbourne development team. The German plant is producing 
early fuel cell stacks to validate this technology transfer process, before 
ramping up production to meet expected orders in the next few months. 
 
 
Financial Review 
 
 
Underlying net operating cash outflow for the December quarter was A$3.7m 
(GBP2m) which is in line with last quarter. In December the Company received a 
regional development grant of A$2.2m (GBP1.2m) from the Government of North 
Rhine Westphalia in Germany, bringing the final net operating cash outflow for 
the quarter down to A$1.5m (GBP0.84m). 
 
 
Receipts from customers were up by A$0.6m (GBP0.3) reflecting the progress being 
made on the projects with European utilities and appliance partners to develop 
integrated m-CHP products. This increase in cash was offset by payments relating 
to inventory build up in preparation for the manufacture and sale of BlueGen 
units in 2010. 
 
 
During the quarter cash outflow from investing activities was A$2.0m (GBP1.1m) 
for payments relating to the Company's manufacturing plant in Germany. 
 
 
Cash inflows from financing activities during the quarter totalled A$2.4m 
(GBP1.3m). In December the Company concluded a sale-and-leaseback transaction on 
certain equipment at the Heinsberg plant with the Commerzbank Group.  This 
resulted in a net cash inflow of A$2.5m (GBP1.4m). 
 
 
Cash at the end of the quarter was A$24.1m (GBP13.5m). 
 
 
 
 
The quarterly cashflow report is available on the Company's website at 
www.cfcl.com.au. 
 
 
 
 
 
 
 
 
 
 
For further information please contact: 
 
 
+---------------------------------------------+--------------------------+ 
| Ceramic Fuel Cells                          |                          | 
+---------------------------------------------+--------------------------+ 
| Andrew Neilson                              | Tel: +613 9554 2300      | 
+---------------------------------------------+--------------------------+ 
|                                             | Email:                   | 
|                                             | investor@cfcl.com.au     | 
+---------------------------------------------+--------------------------+ 
|                                             |                          | 
+---------------------------------------------+--------------------------+ 
| Nomura Code Securities                      | Tel: +44 (0)  207 776    | 
|                                             | 1200                     | 
+---------------------------------------------+--------------------------+ 
| Juliet Thompson, Chris Golden               |                          | 
+---------------------------------------------+--------------------------+ 
|                                             |                          | 
+---------------------------------------------+--------------------------+ 
| Australia Media enquiries                   |                          | 
+---------------------------------------------+--------------------------+ 
| Richard Allen, Oxygen Financial Public      | Tel: +613 9915 6341      | 
| Relations                                   |                          | 
+---------------------------------------------+--------------------------+ 
|                                             |                          | 
+---------------------------------------------+--------------------------+ 
 
 
 
 
About Ceramic Fuel Cells Limited: 
 
 
Ceramic Fuel Cells Limited is a world leader in developing solid oxide fuel cell 
technology to provide highly efficient and low-emission electricity from widely 
available natural gas. The company is developing micro combined heat and power 
and distributed generation units that generate electricity and heat for homes 
and other buildings. Ceramic Fuel Cells is developing products with leading 
appliance partners and utility customers in Germany, France, the United Kingdom 
and Japan. In 2009 the company launched its BlueGen gas-to-electricity product. 
Ceramic Fuel Cells is headquartered in Melbourne, and has operations in the UK 
and Germany. The company is listed on the London Stock Exchange AIM market and 
the Australian Securities Exchange (code CFU). 
 
 
www.cfcl.com.au 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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