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CFCL and E.ON Extend Microgeneration Collaboration (posted 2/19/09)

February 19, 2009
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The joint development project aims to commercialize mCHP units designed specifically for the Great Britain market.

Ceramic Fuel Cells (Europe) Limited (CFCL), a subsidiary of Ceramic Fuel Cells Limited, and E.ON have extended their exclusive agreement to further develop and deploy fuel cell micro-combined heat and power (mCHP) units in Great Britain. Under the terms of the new agreement, E.ON and CFCL will collaborate on a joint development project to commercialize mCHP units designed specifically for the Great Britain market based on CFCL’s GENNEX fuel cell module. The commercialization project is currently scheduled to run from 2009 to 2012 in a number of stages, subject to performance criteria, with the Great Britain market launch expected to follow thereafter.

Subject to CFCL’s achievement of agreed price and performance targets, E.ON and CFCL have agreed a potential future order profile, which would secure E.ON's exclusive distribution rights for CFCL micro-CHP units within Great Britain. A minimum order of 100,000 units over six years from 2012 would be required for E.ON to continue to retain exclusivity.

“The agreement with CFCL reflects two years’ hard work to achieve a unit with a technical performance that has met all our targets,” said Charles Bradshaw-Smith, head of Innovation at E.ON. “We are now pleased to commit funding and resources, subject to the attainment of agreed milestones, to roll out a commercial unit building on CFCL’s market-leading technology. This technology signals that cleaner, more cost-effective energy in the UK home is closer than ever before.”

According to Brendan Dow, managing director of Ceramic Fuel Cells, “We are delighted that E.ON, one of the leading energy companies in Europe, has chosen to extend their agreement with CFCL. This is a key endorsement and represents significant progress. This provides us with additional funding to develop commercial products, as well as strong support for future market launch and development. This reinforces CFCL as the market leader in solid oxide fuel cells with a clear path to commercialization. CFCL continues to work with utility partners across Europe to roll out commercial units to all their customers.”

Visit www.cfcl.com.au or www.eon.com for more information.

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