Ceramic Fuel Cells (LON:CFU) has welcomed news that the Government in the Australian territory of Victoria has begun a review into the expansion of feed-in tariffs to include low-emission technologies. CFC is an Australia-based cleantech developer of high efficiency and low emission electricity generation units for homes and other buildings. It recently received a conditional order for 30 of its BlueGen gas-to-electricity generators from the Victorian Government's Office of Housing.

A feed-in tariff is a rate paid for electricity fed back into the electricity grid from designated renewable and low emission electricity generation sources. In Victoria there is a 'standard' feed-in tariff (equal to the retail price for electricity, or about 20 cents per kilowatt hour) for electricity fed back into the grid from wind, solar, hydro and biomass generators of up to 100 kilowatts capacity; plus a 'premium' feed-in tariff (of 60 cents per kilowatt hour) for solar systems up to 5 kilowatts capacity. However, to date, there has been no feed-in tariff for low-emission electricity production from technologies such as fuel cells.

The Victorian Government’s review will consider the cost effectiveness of extending the feed-in tariff provisions to low-emissions technologies, including fuel cells. It has released a consultation paper and is seeking submissions ahead of a closing date on July 23, 2010. Ceramic Fuel Cells said it would be making a submission to the review.

Feed-in tariffs are being used in many markets to encourage the deployment of renewable and low emissions technologies. From April 2010 the UK Government introduced a feed-in tariff for small low-emission electricity generators, including fuel cell power and heating products. A feed-in tariff also applies in Germany, France and The Netherlands.

Last week Ceramic Fuel Cells announced that a report by CSIRO had confirmed the significant carbon savings from the company's BlueGen gas-to-electricity product. When operated continuously each BlueGen unit can save between 12 and 33 tonnes of carbon per year compared to the grid in Victoria. BlueGen also delivers many other environmental benefits: no nitrogen oxide or sulphur oxide emissions, and up to 95% less water used than coal fired generators to produce the same amount of electricity.

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