the redp

Hi, Im an Investor in the UK and read your BB to keep on top of CFCL's Australian developments. I was quite interested in the REDP program when i read about it on here so i did a little research and emailed the company after i read the terms of REDP.

Below is my email and prompt response from Andrew Neilson.

Hello Ceramic Fuel Cells,

I am an investor based in the UK and have been following your
company with interest since you listed on the AIM market.

I am enquiring if CFCL was able to apply for the REDP (Renewable
Energy Demonstration program) in Australia. I am aware that it is still
a Hydrocarbon based energy device but thought they might make an
exception due to the energy and carbon savings your technology provides.

Also will CFCL be applying for the funding made available to low
carbon energy generation in the 2009 UK Budget?

Just like to say i'm very pleased with the progress the company is
making after the recent funding and look forward to the news flow over
the coming months, are we still expecting a June update on the German
factory and possible partners?

Kind Regards



Thanks for your note and your support of CFCL. We've looked at the REDP funding and had several discussions with the people running the program
- unfortunately because we use natural gas we are excluded from this
program. It's a common problem - policies often prescribe a list of
technologies rather than just rewarding good outcomes (ie lower emission
power). We're continuing to lobby our case in Government - although
it's also important to note that our technology will succeed when we get
rapid commercial uptake; Government funding helps with early deployment but our business case does not depend on it. We're also looking at similar funding programs in our other target markets, including UK.

German factory is on track for an opening in October this year. We're
talking to potential new partners but I can't speculate about timing of
any announcements.

Hope this helps, and once again thanks for your support.

Regards

Andrew Neilson
Legal and Commercial Manager (Company Secretary)
CERAMIC FUEL CELLS LIMITED
Tel: +61 (0)3 9554 2300
Email: [email protected]
Website: www.cfcl.com.au