Ceramic Fuel Cells

Ceramic Fuel Cells Limited (CFU:ASX and CFU:AIM)

Melbourne-based clean energy company Ceramic Fuel Cells Limited, has officially launched a new modular generator product. The new product, called BlueGen, is a ‘mini power station’ for homes and other buildings. It produces low emission electricity and hot water, reducing greenhouse gas emissions and saving on home energy bills.

The BlueGen unit converts natural gas to electricity and heat via ceramic fuel cells, and is about the size of a dishwasher. The Company plans to make the BlueGen product available in Victoria from early 2010.  The Company is in discussions with potential local manufacturing partners and  with potential purchasers of the BlueGen product in other markets including Europe and North America.

Compared to Victoria’s current brown coal electricity generators, each BlueGen unit can reduce carbon dioxide emissions by up to 75% or 18 tonnes per unit, per year.

The BlueGen product is being officially launched by the Premier of Victoria, John Brumby, at Ceramic Fuel Cells’ head office in Melbourne. Local innovations like Ceramic Fuel Cells' technology will help to play an important part in reducing the carbon intensity of Victorian homes and businesses. Currently, coal-fired power stations produce 95% of Victoria’s electricity.

Ceramic Fuel Cells has signed a Memorandum of Understanding with VicUrban to showcase the BlueGen units in VicUrban housing  developments. Subject to agreeing final terms, Ceramic Fuel Cells will install the first BlueGen unit in VicUrban’s Sustainable and Affordable Living Centre in Dandenong to be opened towards the end of 2009, and will install up to three more demonstration units in other VicUrban developments next year.

The Company’s modelling of the Victorian market shows that widespread deployment of the BlueGen product has significant potential benefits:

The BlueGen units can generate electricity more than twice as efficiently as the current Victorian power grid, at a cost of up to 40% cheaper than the current average retail electricity price, which could save up to $1,100 off the average home’s annual energy bill.

When mass produced, the BlueGen products are forecast to cost around $8,000 each with a payback period of seven years and a product lifetime of 15 years.

The BlueGen unit produces up to 75% less carbon dioxide emissions than Victoria’s current coal-fired generators.

Each 2kW BlueGen unit can produce up to 17,000 kilowatt hours of power, per year. This is more than twice the electricity needed to power an average Victorian home.

The unit also produces heat, to make up to 200 litres of hot water a day.

The unit has an overall efficiency of up to 85%, compared to about 25% efficiency of Victoria’s current coal-fired power stations.

The BlueGen unit also uses up to 95% less water than Victoria’s current coal-fired power stations to generate the same amount of electricity.

The company is well on its way to full commercialisation. The share price has already started to rally, but we believe there is much further upsise from here!

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