New agreement could see fuel cell power stations across the UK

Three British companies have joined forces to develop a game-changing venture in clean
power generation. Energy pioneers Powerfuel Power Ltd, B9 Coal Ltd and AFC Energy Plc
have signed a binding Letter of Intent to install AFC Energy’s revolutionary fuel cell

technology at Powerfuel’s Hatfield site near Doncaster.

The agreement envisages the creation of a Joint Venture (JV) between B9 Coal and Powerfuel
to exclusively develop low-carbon fuel cell power stations in the UK. B9 Coal will be
responsible for installing up to 300 megawatts (MW) of AFC Energy’s fuel cell technology
alongside Powerfuel’s planned integrated gasification combined cycle (IGCC) power station.
The agreement also includes an option to rollout the technology to further territories

worldwide in the future.

“This business venture with Powerfuel is a wonderful opportunity for fuel cell technology on
both a local and global scale. Together we can offer a technically advanced solution to the
problem of rising carbon emissions, as well as a practical and commercial template for clean
energy generation. In the pursuit of a low carbon future, innovative ventures such as these
will lie at the heart of a sustainable energy mix,” commented Alisa Murphy, Director B9 Coal

Ltd.

Powerfuel is constructing a large scale IGCC, near zero emissions power station with carbon
capture capability at the Hatfield site. Initial construction will involve an 800 MW combined
cycle gas turbine (CCGT) facility optimised for 'syngas' conversion and operation. Powerfuel
then plan to convert the CCGT plant into a 900 MW IGCC power station fuelled by its

extensive coal resources at Hatfield colliery.

The syngas used in the plant can easily be passed through a clean-up process to produce
hydrogen as a feedstock for AFC Energy’s low cost alkaline fuel cells. AFC Energy’s
technology converts hydrogen to emissions-free electricity at 60% electrical efficiency.
“This venture with B9 and AFC supports Powerfuel's aspiration of leading the drive for low
cost clean energy from fossil fuels. In our IGCC project, the lowest carbon capture
technology commercially available today will be demonstrated, but through this agreement
and others like it, Powerfuel are looking forward at how the cost can be reduced further.
Delivering competitive clean power, at a price affordable to the consumer, has to be the
aspiration of every responsible generator.” Grant Budge, Chief Operating Officer, Powerfuel

Power Ltd.

The deployment marks the second clean coal project in the UK to adopt AFC Energy’s
technology. In August, B9 Coal announced that they were putting forward a major

consortium bid for the Department of Energy and Climate Change (DECC) carbon capture

and storage (CCS) demonstration competition. The groundbreaking project proposed at Rio
Tinto Alcan’s Lynemouth Smelter in Northumberland will combine AFC Energy’s fuel cell
technology with Linc Energy’s Underground Coal Gasification (UCG), a process which could

potentially give access to an extra 17 billion tonnes of coal in the UK.

Ian Balchin, CEO of AFC Energy Plc, commented: “This landmark agreement provides further
market validation for our low cost, low carbon fuel cell technology in large scale power
generation projects. Combined with growing opportunities in the industrial and waste-to
energy sectors, we believe it is truly transitional: solving the carbon conundrum of fossil

fuels whilst enabling the renewable energy economy.”

The planned installation at a major low carbon power station such as Hatfield is testament
to the growing understanding of the fuel cell as a pull-through technology for the
widespread adoption of CCS. AFC Energy’s fuel cell technology is gaining considerable
momentum across a variety of industries and applications, including the chlor-alkali sector,
waste-to-energy, clean coal and natural gas.