Business
First milestone in Coal Gasif
First milestone in Coal Gasif.
About this update from H-power Plc
[{"type":"text","content":"\n RNS Number : 4483H AFC Energy Plc 22 February 2010 \n \n\nAFC Energy reaches first milestone in Coal Gasification Agreement\nAlpha unit ready for shipping, stage payment due, additional partners secured\n \nAFC Energy (AIM: AFC), the developer of low cost alkaline fuel cells that generate clean electricity from hydrogen feedstocks, is delighted to announce that, further to its initial announcement on 8th December 2009, it has reached the first milestone under its agreement with Linc Energy Limited (ASX: LNC, Market Cap: cA$717m) and with B9 Coal Limited.\n \nLinc Energy Limited ('Linc' or 'the Partner') is Australia's leader in clean coal technology, and intends to integrate the AFC fuel cell system for use in its global Underground Coal Gasification (\"UCG\") projects.\n\nThe combination of cheap and easy-to-produce synthetic hydrogen from UCG will make an ideal feed source for AFC Energy's fuel cell systems. Linc Energy will utilise a simple membrane gas separation process on the UCG gases to ensure a satisfactory rich hydrogen mix is available for feed-in to the fuel cell system.\n\nIn the two months since signing the agreement, AFC Energy has already configured and assembled an Alpha fuel cell system which is now ready for shipping to the first demonstration site, an operating UCG plant in Chinchilla, Australia. As such, the first payment is now due from Linc to AFC Energy.\n \nUpon commissioning and successful trials of the Alpha unit, it is intended to install multiple modules at Chinchilla to form a larger c.50 kW AFC fuel cell system. All parties anticipate multiple installations of AFC Energy's 50kW system for full scale commercialisation.\n \n \nKey terms of the agreement with Linc Energy are as follows: \n· AFC Energy has granted to Linc Energy worldwide exclusive rights to utilise and operate AFC Fuel Cells in conjunction with any UCG application for a period of 24 months\n· Linc Energy will purchase the first Alpha fuel cell system for £200,000, payable in instalments, with delivery anticipated within the next five months\n· Linc Energy will have the option for 24 months to extend the exclusivity period in perpetuity. To exercise this option Linc must invest £2.3 million in AFC Energy at a price determined in reference to th...