Company Information for Ceramic Fuel Cells Limited

AIM-CFU; ASX-CFU

http://www.cfcl.com.au

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Company Statement

There is growing demand for energy across the globe. Demand for electricity is forecast to double from 2002 to 2025. Yet the existing supplies may not cope with this demand, and significant investment is needed in new generation systems that also meet higher efficiency and environmental standards.

Ceramic Fuel Cells Limited (CFCL) is providing solutions.

CFCL is a world leader in developing solid oxide fuel cell (SOFC) technology to provide reliable, energy efficient, high quality, and low-emission electricity from widely available natural gas and renewable fuels. CFCL is developing SOFC products for small-scale on-site micro combined heat and power (m-CHP) and distributed generation units that co-generate electricity and heat for domestic use.

CFCL's SOFC technology has the potential to improve fuel conversion efficiencies and provide significant environmental benefits: CFCL's SOFC can achieve up to 50% electrical efficiency using natural gas and can reduce carbon dioxide emissions by up to 60% compared to coal fired electricity generation.

CFCL is now at an advanced stage of development, and is moving swiftly towards commercialisation. Since 1992, CFCL has developed its own fuel cells and complete fuel cell ‘stacks', and has also succeeded in creating the highly engineered ‘balance of plant' that surrounds the fuel cell stack and controls the inputs (fuel, air and water), outputs (heat and electricity), timing, and temperature controls.

With over 100 skilled staff and extensive patented technology, CFCL is pursuing partnerships for manufacture, production and use of its fuel cells in delivering electricity to the domestic European and Asian markets.

CFCL has extensive R&D, testing and manufacturing facilities and is planning to build a large-scale fuel cell manufacturing facility in Europe, making CFCL a leader in preparing for volume production. The Company also plans to construct a plant in Europe to produce high quality ceramic powders, which are a key component of solid oxide fuel cells, using the Company's patented technology.

CFCL was formed in 1992 by Australia's CSIRO (Commonwealth Science and Industry Research Organisation) and a consortium of leading energy and industrial companies. A UK subsidiary was established in 2004. The Company is based in Melbourne, Australia and Chester, United Kingdom. It is publicly listed on both the London Stock Exchange AIM market (floated March 2006), and on the Australian Stock Exchange (floated July 2004). The company's code on both exchanges is CFU.

Strategy

CFCL will be the supplier of choice for reliable and high electrically efficient solid oxide fuel cell products, which manufacturers can easily integrate into micro generation appliances for the European market.

To implement this strategy, CFCL has:

Successfully developed and tested its fuel cells, as single cells and integrated stacks;
Designed and built the Balance of Plant systems;
Integrated its fuel cell stacks with its Balance of Plant into complete CHP demonstration units;
Delivered CHP demonstration units to customers for field trials;
Designed and built a prototype ‘fuel cell micro-generator’ unit – called ‘Net~Gen™’.

To successfully commercialise its technology, the Company intends to:

Establish a plant in the UK to produce high quality ceramic powders, which are a key component of solid oxide fuel cells, using the Company’s patented technology;
Build and operate a fuel cell stack manufacturing plant in Germany to enable large scale manufacturing of the Company’s fuel cells;
Conclude arrangements with appliance manufacturers to incorporate CFCL’s fuel cells into their end-user products;
Continue to improve its fuel cells - in particular, power output and stack life – and make it easier for appliance manufacturers to integrate CFCL’s fuel cells and Balance of Plant systems into a range of end user products.

CFCL will focus on implementing this strategy, whilst keeping an eye on other opportunities – from within or outside the fuel cell world - that can generate revenue or otherwise add to shareholder value.

Revenue

Through this strategy, CFCL intends to derive its principal revenues from:

Sales of fuel cell stacks and associated Balance of Plant to appliance manufacturers; and
Sales of replacement fuel cell stacks.

Additional potential revenue streams are:

Field trial payments;
Sale of specialist ceramic powders;
Integration services to appliance manufacturers;
IP licensing revenue; and
Fees for consulting services to license holders.
CFCL believes there are significant barriers to new competitors entering its target markets, most notably the long time required to develop reliable and cost effective fuel cells (and substitute technologies) and the intellectual property portfolios of existing developers.

Distributed electricity generation and in particular, distributed electricity from fuel cells, is still an embryonic market. CFCL believes that high potential market growth rates, competitor diversity and low levels of over capacity all contribute to relatively high potential industry profitability.

CFCL’s Strategic Capabilities

Fuel cell and stack design and development
Fuel cell prototyping expertise and flexibility
Fuel cell generator design, development and integration expertise
End to end design and prototyping (fast response time and excellent quality control).

Operations and Technology

Ceramic Fuel Cells (CFCL) is a world-leading, publicly listed organisation focussed on the commercialisation of our SOFC technology into growing international markets. We are now taking our strong background in R&D and our world-class facilities to develop products with groundbreaking technology ready for tomorrow. Our products are not limited to solid oxide fuel cells - we have extensive know-how in: powder and ceramic production, high temperature metal and ceramic materials, advanced heat exchanger design, Balance of Plant system design and fully integrated fuel cell testing systems.

Summary of Technologies is as follows:

Fuel Cells

Fuel Cell Modules

Fuel Cell Systems

Fuel Cell Test Systems

Balance of Plant Components

CFCL's products & technology can be utilised in many different markets, from domestic electricity generation, remote area power supplies, as well as auxiliary power units. The principle behind these markets is highly efficient electricity generation. The main growth area for CFCL is Distributed Generation (DG) sometimes known as embedded generation.

The concept of DG is electricity is produced where it is consumed - that is within the local area on the low voltage distribution side of the grid.

The concept of DG involves number of electricity generation sources providing electricity into the distribution side of the grid. These generation sources may include photovoltaic cells (solar), micro-wind turbines, and combined heat and power (CHP) units.

Micro-wind turbines and photovoltaic cells highly visible and well known, however they are dependant on weather conditions and cannot provide stable base load electricity all year round.

CHP units can range in size from less than 1kW up to 6MW and above. CFCL is focussed on providing solutions for the 1 to 5kW range of CHP units - known as micro-CHP (m-CHP).

Board of Directors and Key Management

Julian Dinsdale	Chairman
Brendan Dow	Managing Director
John Dempsey	Non-Executive Director
David Carruthers	Non-Executive Director
Professor Michael Dureau	Non-Executive Director
Robert Kennett	Non-Executive Director
Andrew Neilson	Company Secretary

Company Address

Ceramic Fuel Cells Limited170 Browns RoadNoble Park, Australia
Victoria, Victoria, Australia Victoria 3174


Telephone:	+ 61 (0)3 9554 2300
Facsimile:	+ 61 (0)3 9790 5600
Email:	enquiries[at]cfcl.com.au
Website:	http://www.cfcl.com.au

Additional Address/Key Contact

Investor Relations
Ceramic Fuel Cells Limited
170 Browns Road
Noble Park, Victoria, 3174
AUSTRALIA

Telephone: + 61 (0)3 9554 2300
Email: investor@cfcl.com.au

Capital

309,741,670 Ordinary Shares issued and outstanding

Nominated Brokers

Libertas Capital Securities Limited
Charles Goodfellow
Telephone: +44 207 569 9672
e-mail cg@libertascapital.com

Ambrian Partners Limited
Charles Bendon
Telephone: +44 207 776 6469
e-mail: charles.bendon@ambrian.com

Major Shareholders

Holder	% ownership

Aegon UK Plc	14.3%

Woodside Petroleum Limited	12.3%

Energex Limited	11.9%

Most Recent Statement

18/09/08 - Issue of Options
28/08/08 - PRELIMINARY RESULTS FOR THE 12 MONTHS ENDED 30 JUNE 2008
25/08/08 - Notification of Preliminary Results
23/07/08 - Quarterly Cashflow Report
23/07/08 - Business Update and Quarterly Cash Flow Report
01/07/08 - Advances Result in 50% Increase in Cell

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