Ceramic Fuel Cells, H.C. Starck in supply deal

Australia's Ceramic Fuel Cells said today it signed an agreement with Germany's H.C. Starck for the supply of fuel cells as well as to collaborate on fuel cell components.

Ceramic Fuel Cells said H.C. Starck would supply fuel cells at agreed upon prices until December 2011, starting in mid 2008.

Financial terms of the agreement were not disclosed.

"This announcement represents a significant step in fuel cell commercialization," said Brendan Dow, managing director of Ceramic Fuel Cells.

"We have combined our valuable intellectual property – developed since 1992 - with H.C. Starck's manufacturing facilities in order to quickly move to volume production, with the same level of quality, at a lower cost and lower risk."

Under today's deal, the two companies plan to work together on advanced solid oxide fuel cell components, focusing on anode supported cells.

Ceramic Fuel Cells said H.C. Starck recently commissioned two lines for manufacturing anode supported cells and electrolyte supported cells in Selb, Germany, with an annual capacity of approximately 700,000 cells each.

The cooperation agreement is non-exclusive for both parties, according to Ceramic Fuel Cell, which said it would continue to produce fuel cells at its research and development and pilot manufacturing facility in Melbourne.

Ceramic Fuel Cell said it's reviewing similar opportunities with other suppliers throughout Europe.

The company is developing fuel cell products for small-scale on-site micro combined heat and power and distributed generation units.