The scaled cell electrodes are the same size as the electrodes from the first prototype system measuring 150mm by 250mm. The scaled cell is now being tested under specific harsh operating conditions, designed to demonstrate durability and corrosion resistance of the system.

The successful development of the scaled single cell unit is another important step towards full commercialisation during 2009. The next expected milestone is the 500 hours operation of the scaled single cell scheduled for October 2007.These tests have already begun with the scaled cell being exposed to constant, transient and no load conditions.

The scaled single cell unit successfully demonstrates the generation of electricity, using both cathode and anode electrodes, from hydrogen and oxygen. The Directors continue to believe that AFC Energy's fuel cell will have a conversion efficiency of approximately 60%.

Gerard Sauer, Chief Executive, said: "AFC Energy remains on track with the development of its low cost fuel cell. Excellent progress continues to be made with the electrode and results from initial tests show that power performances are very encouraging and catalyst degradation is minimal.

"AFC Energy continues to work closely on the development of its technology with its customer Akzo Nobel which produces substantial amounts on hydrogen from the production of chlorine. We look forward to delivering our first fuel cells to Akzo Nobel during 2008."