Ann: Company Update , page-2

Kaching!!!!!

Woaaahhhhhh!!!!!

Is it my imagination, or is this the Eureka moment we've been waiting for!

It sounds like the degradation rate has been sorted out, or at least to an impressively low rate.

It says that "Fuel cell stack life has improved more than 80% in the last 12 months. CFCL is now achieving a degradation rate of less than 0.2% per 1,000 hours, on a stack that has been producing 1kW of power for 7,000 hours in a test station. The Company is on track to repeat these results in a complete system during 2009 to achieve a key commercial target of a projected stack life of 4-5 years (40,000 hours).".

Back in July, they said that "Fuel cell stack lifetime has also continued to improve significantly. Degradation has reduced by 35% in only four months – 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.".

So, it's gone from 1.53% to 1% in June to less than 0.2%!!! Unless my physics / maths / understanding of this technology fails me, it seems like a dodle to achieve "4-5 years (40,000 hours)" if it only loses >0.2% / 1000 hours ... my rough calc with it compounding would make that 8-9% degradation over that time. Please correct me if I'm wrong (probably!).

The increase to 55% efficiency doesn't hurt at all either!

Also, they've achieved the full integration ahead of schedule as well ... that was meant to be 2009.

Excuse me if I'm too euphoric (on what I think is great news ... again, please peg me back a bit if required) to focus on the other news they've sugar coated, which is that they're delaying the opening of the factory. Presumably they've done that not only to save costs but due to rationalisation that there would have been a slow start up process for demand vs. supply, therefore a good place to trim costs.

Looking forward to hear other posts, to see if I've read this right or not ...

Cheers.