Business
Order and exclusivity agreeme
Order and exclusivity agreeme.
About this update from H-power Plc
[{"type":"text","content":"\n RNS Number : 7494D AFC Energy Plc 08 December 2009 \n \nAFC Energy Plc\n(\"AFC Energy\" or the \"Company\")\n\nOrder and exclusivity agreement with Linc Energy \n\nAFC Energy (AIM: AFC), the developer of low cost alkaline fuel cells that generates clean electricity from by-product hydrogen, is delighted to announce that it has signed a binding Heads of Agreement with Linc Energy Limited (\"Linc Energy\"), and with B9 Coal Limited Linc Energy (ASX: LNC, Market Cap: cA$717m) is Australia's leader in clean coal technology, and intends to integrate the AFC Fuel Cell System for use in Linc Energy's 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\nLinc Energy has an operating UCG plant in Chinchilla, Australia where it is intended to initially install AFC Energy's Alpha fuel fell system for demonstration and then, once developed, install the larger c.50 kilowatt AFC fuel cell system. All parties anticipate multiple installations of AFC Energy's 50kW system for full scale commercialisation. Key terms of the agreement are as follows:\n\n\n\n\nAFC 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\n\nLinc Energy will purchase the first Alpha fuel cell system for £200,000, payable in instalments, with delivery anticipated within the next five months\n\n\nLinc 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 the market price at the time of exercise\n\n\nFor Linc Energy-owned sites, Linc Energy will pay to AFC Energy an upfront payment calculated on the cost of delivery of ...