Ceramic Fuel Cells (ASX/AIM:CFU) has commenced the first fully funded BlueGEN programme, where the BlueGEN is installed at no cost to the end user.
The program, comprising a 100kW fleet of 65 or more BlueGENs, is targeted primarily at public sector organisations that can take advantage of the significant carbon and energy savings BlueGEN has to offer.
The innovative funding structure allows BlueGENs to be installed in end user premises at no upfront cost.
End users pay for the costs of gas and BlueGEN maintenance and receive the benefits of the electricity generated and the heat recovered for hot water.
This program has been developed and will be run by one of CFU's UK distributors, iPower Energy.
iPower has also confirmed its interest in developing a second, larger program in the second half of calendar year 2015.
These discussions will include various new appraisals and opportunity pipeline assessments which are expected to take place in parallel with the delivery of this first program.
The terms of the agreement signed with iPower are conditional on drawdown from a facility provided by a third party funder.
iPower will make a deposit of A$636,000 which is expected to be received by CFU early in December.
In order to meet the criteria imposed by the funding provider, iPower has secured formal confirmations of interest from participating end users for a majority of the installations.
Earlier this year CFU directed its intention to focus primarily on larger scale projects and this first of what should be a number of projects of this type is very positive.
It demonstrates the commercial viability of this contractual structure whereby third party funding is used to support the project and provide end users with attractive benefits.
CFU technology can deliver savings of 20-40% on the cost of energy displaced by the BlueGEN with no upfront cost.
The company is somewhat of a forgotten technology player and is capitalised at $33 million - modest for its advanced stage of development.
CFU received a $4.1 million tax refund last month and now holds around $5.5 million in cash.
