AFC Energy generates first commercial revenues

7th Jul 2010 17:04

Alkaline fuel cells developer AFC Energy has generated its first commercial revenues with more to come in the second half. Guildford-based AFC has generated those revenues from the deployment of one of its fuel cell systems at Linc Energy's underground coal gasification (UGC) demonstration facility in Chinchilla, Australia.This generated £50,000 in the first half with the other £150,000 due to be paid in the second half. The loss still increased from £1.18m to £1.38m in the six months to April 2010. A pilot plant has been commissioned to produce up to 2MW of fuel cell systems a year. AFC does not intend to manufacture systems other than in this limited amount so additional production would be outsourced. AFC hopes to complete its large scale Beta modular fuel system development in 2011. This will be used for a multi-megawatt power station concept. Centrica has also reserved one of these systems. Cash is not a worry in the short-term. There was a £1.37m outflow from operations and capital expenditure but there is still £2.68m in the bank at the end of April 2010, thanks to the £2.01m net raised at 10p a share last December. It is difficult to assess whether there will be any additional revenues in the second half. AkzoNobel is still testing its system, which enables it to use its waste hydrogen from chlorine production. If this proves effective it is likely to install the system in other plants and its rival chlorine producers are likely to be interested as well.