AFC Energy Plc (LON:AFC), the company behind the development of low-cost alkaline fuel cells, this morning reported that an alkaline fuel cell system had been successfully deployed and operated at Linc Energy's (ASX:LNC) underground coal gasification (UCG) demonstration facility in Chinchilla, Australia. It is believed that this is the first time that a hydrogen fuel cell has been deployed with UCG and represents a major step towards combining UCG and alkaline fuels cells as a breakthrough technology for cleaner coal worldwide. The company added that the technologies have the potential to use coal in the cleanest way possible. Shares in AFC rose by 14% to 22p on the news.

Hydrogen produced from Linc Energy's UCG process is an ideal feedstock for AFC Energy's fuel cell systems. Linc Energy will use a simple membrane gas separation process on the UCG gases to ensure a rich hydrogen mix is available for the fuel cell system. AFC said the integrated technologies had the potential to offer an enhanced efficiency conversion of coal to electricity, whilst enabling up to 99% carbon capture. In addition, this combination provides potential access to billions of additional tonnes of coal in the UK without the environmental impacts of conventional underground or open cast mining. The alkaline fuel cell converts hydrogen to electricity at 60% efficiency and at an estimated cost per kilowatt hour as low as 4 pence.

The deployment of AFC’s Alpha fuel cell system builds on an order and exclusivity agreement between Linc Energy, AFC and UK-based B9 Coal Ltd signed in December 2009. The relationship was instigated by B9 Coal which continues to lead the project and is actively pursuing opportunities for deploying these technologies in the UK.

Elsewhere today, AIM and ASX listed Ceramic Fuel Cells (LON:CFU), which develops of high efficiency and low emission electricity generation units for homes and other buildings, said it had entered a licence agreement with US-based NexTech Materials. Under the terms of the deal, NexTech will offer solid oxide fuel cell interconnect coating solutions based on Ceramic Fuel Cells' patented formulations. Ceramic Fuel Cells has patented a technology which protects metal interconnect plates from chromium poisoning. This solution, which the company uses in its own fuel cell products, is useful for other developers of solid oxide fuel cells. Shares in Ceramic Fuel Cells responded with…

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