Ceramic Fuel Cells is a Melbourne based fuel cell company listed on the London AIM exchange as well as the ASX. They are developing fuel cells for domestic and small-scale use that can create electricity in the home, generate excess power to be sold back into the grid as well as run a hot water system from the waste heat generated.
Whats changed
The company has continued building its global strategy into markets that support the BlueGen technology. We like the diversification of this strategy.
Germany, UK, France and the Netherlands now have feed in tariffs for customers with fuel cell units at home. California is considering a feed in tariff.
Germany, the Netherlands, Japan and California also provide upfront capital subsidies for the units.
Further, the company has recently received approval to sell BlueGen units on a mass scale in Europe which we believe may mark a symbolic as well as practical inflexion point for the company.
Australian Energy
CERAMIC FUEL CELLS (CFU) Sector/Industry Fuel Cells Last Price $0.21 12 mth High $0.345 12 mth Low $0.062 Date of review 26/4/2010 Market cap $216 million Dividend yield 0.0% Recommendation Summary BUY (on fundamentals). Spate of solid good news not yet flowing into share price. BUY (on technicals). RSI in neutral, but 60 MDA is showing possible inflexion point that could be positive. www.energyreport.com.au
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Lastly, we believe we now more fully understand the companys strategy. The electricity market, especially for household appliances in Europe operates differently to Australia. Concerns about the high cost of the units (around $20,000) are less relevant in Europe where they are likely to be purchased by the utility and leased back to the householder.
BlueGen units are able to produce significantly more excess power than many household solar panel systems which means households may be financially rewarded through attractive feed in tariffs sufficient to mitigate their costs.
CFU Price at posting:
19.8¢ Sentiment: Buy Disclosure: Held
