sale to alliander

17 February 2010


CERAMIC FUEL CELLS' BLUEGEN SALE TO ALLIANDER


Ceramic Fuel Cells Limited (AIM/ASX: CFU), a leading developer of high
efficiency and low emission electricity generation units for homes and other
buildings, has sold a BlueGen power and heating unit to European utility
Alliander.

Alliander supplies gas and electricity to 2.9 million customers in The
Netherlands and Germany, including to the local Heinsberg area, where Ceramic
Fuel Cells has opened a volume fuel cell stack manufacturing plant.

From Q2 2010 Alliander will operate a BlueGen unit in one of its buildings in
the Industriepark Oberbruch in Heinsberg, to evaluate the technology for further
deployment and to demonstrate the product to customers and potential partners in
the Heinsberg region. Alliander is evaluating the BlueGen product as part of
its vision to create a smart grid network in the local region.

About the size of a dishwasher, each BlueGen unit can produce twice the
electricity needed to power an average home, with the surplus electricity sold
back to the grid. BlueGen also produces heat, to make enough hot water for an
average home. BlueGen units can generate electricity more efficiently than the
current European power grid, significantly reducing a home's carbon emissions
and cutting energy bills.

Ceramic Fuel Cells has achieved electrical efficiency of 60 percent, far higher
than any other technology in the rapidly expanding market for small scale power
and heating generators. When heat is recovered from the electricity production
process, total efficiency is up to 85 percent - twice as efficient as the
average among current European power stations.

By generating power close to where it is used, Ceramic Fuel Cells' products can
meet the future demand for electricity without the need for huge investments in
electricity transmission and distribution infrastructure.

The order from Alliander follows recent BlueGen orders from other leading
European utilities E.ON Ruhrgas, RheinEnergie, EWE and Gasterra, as well as
customers in Australia and Japan. Ceramic Fuel Cells has also deployed fully
integrated power and heating products with leading energy companies E.ON UK in
the United Kingdom and GdF Suez in France.