Business
US$13.5million agreement
US$13.5million agreement.
About this update from H-power Plc
[{"type":"text","content":"\n AFC Energy Plc\n11 June 2007\n\n11 June 2007\n\n AFC Energy plc\n\n Low-cost, alkaline fuel cell company with clear route to commercialisation\n\n\n MOU to produce clean energy signed (including US$13.5 million initial order),\n exclusive supplier relationship and manufacturing JV with the government of\n Indonesia.\n\n\nAFC Energy plc ('AFC Energy' or 'the Company') has entered into a Memorandum of\nUnderstanding ('M.O.U.') with the Government of Indonesia, and specifically with\nthe State Ministry for Development of Disadvantaged Areas of the Republic of\nIndonesia.\n\nThe M.O.U. relates to the CIUP (Community Integrated Utility Program) project\nthat aims to provide 32 million households with the ability to produce\nelectricity and potable drinking water over the next 10 years. AFC Energy has\nbeen appointed as the exclusive fuel cell supplier to this program, whether with\nAFC Energy proprietary fuel cells or as an agent for third party fuel cells.\n\nThe M.O.U. contains an initial order totalling US$13.5 million for three\nthousand 3.5kW systems at US$4,500 per system. Supplies are scheduled to begin\naround the fourth quarter of 2008. The primary trial of 3,000 units will be in\nthe Nabire-Papua region.\n\nThe M.O.U. also confirms that both parties undertake to enter into a joint\nventure to establish, within 18 months, a manufacturing facility in partnership\nwith a number of interested Indonesian corporations. The intention is that over\nthe following 8 - 10 years up to six million 5kW units could be manufactured.\n\nA deposit of US$3.15 million will be paid within 30 days of the signing of the\nM.O.U. in order to assist in financing and accelerating the new project.\n\nIt is intended that AFC Energy will fund the development of the manufacturing\nfacilities required to fulfil this project with funds provided by a number of\nhigh profile public and private multinational companies. AFC Energy is engaged\nin early stage discussions with several parties in this respect.\n\nIr. Tatag Wiranto MURP, Indonesia's Deputy Minister for the Development of\nDisadvantaged Regions said: 'We are pleased to commence this program now that we\nhave identified a low-cost solution to the fuel cell component of the project.'\n\nHoward White, AFC Energy's Business Development director said: 'We are delighted\nto have been chosen exclusively...