The fully scaled single cell mirrors the size of the cells that will be used in the 3.5kW, 50kW and 200kW systems where multiple cells will be connected to generate higher outputs.

The achievement of this third technological milestone, which has been reached within the timescale set out in the Company’s Admission Document and with better durability of the cell than forecast, completes the initial phase of the AKZO Nobel agreement.

The Company will now progress to phase two with its next technological milestone: the development of the complete fuel cell system, due to be completed by the end of January 2008. Following that, AFC Energy will move towards multi-system production in order to fulfil the final part of its contract with AKZO Nobel later next year. AFC Energy expects to provide its first fuel cells to AKZO Nobel by August 2008.

Gerard Sauer, Chief Executive, AFC Energy plc, said:

“AFC Energy is one of few fuel cell companies which has a focus on the industrial sector and has a direct relationship with the product’s end user; in our case AKZO Nobel. AFC Energy’s fuel cells will reduce its customers energy costs from the moment they are switched on. The electricity produced by the by-product hydrogen can either be sold or re-used making an immediate contribution to the customer’s bottom line.

“Reaching this important milestone of the fuel cell systems’ development means that we have successfully completed phase one of our partnership with AKZO Nobel, and we look forward to the next stage of our agreement as we move closer to delivery of our first fuel cells in August 2008. ”