cfcl receives order from ewe for 60 integrated, page-5

MARKET ANNOUNCEMENT

CFCL receives order from EWE for 60 integrated mCHP units

Heinsberg, 17 April 2013. Ceramic Fuel Cells Limited (“CFCL”) (AIM / ASX: CFU), a leading developer of generators that use fuel-cell technology to convert natural gas into electricity and heat for homes and other buildings, received a binding order for 60 integrated mCHP units from German energy service provider EWE. This order starts the final phase of the development and demonstration programme for integrated mCHP generators agreed with EWE in 2010. Delivery is scheduled for June to December 2013.

Integrated mCHP generators combine fuel-cell technology and a condensing boiler to meet all electricity and heat requirements for single-family homes and small office buildings. Operating this new fleet will demonstrate the latest product improvements that CFCL and its development partner Gebrüder Bruns Heiztechnik GmbH (Bruns) have incorporated, including enhanced overall control and thermal efficiency. As soon as final design changes are validated, CFCL and its partners will start the certification process and prepare for market introduction. These units will be CFCL’s second product offering alongside the already well established BlueGEN generators, which offer a power-led solution. With the new mCHP system, CFCL will be able to target the sizeable and resilient residential demand for heating and heating-replacement units. Commercial product launch is expected in 2014.

“EWE’s order is a major step forward for us. We are delighted to be able to offer a marketable integrated mCHP soon, based on the superior technology of our already well established BlueGEN system,” said Bob Kennett, CEO of Ceramic Fuel Cells Limited. “We also look forward to continuing to deploy products with EWE, our longest-standing customer and partner, as well as our local partner Bruns, in the future.”

EWE’s order had been conditional upon EWE receiving partial funding from the German government’s national hydrogen and fuel-cell technology innovation programme. This funding was granted last week. EWE is already operating 72 units under the demonstration programme, and has accumulated more than 500,000 operating hours in homes of EWE customers. From phase one to the start of the final phase, CFCL achieved a significant cost reduction, thus bringing the integrated mCHP closer to commercial viability.

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