LONDON (ShareCast) - AFC Energy, an industrial fuel cell power company, has received the first order for its Beta+ fuel cell test system from fellow AIM-listed PowerHouse Energy Group (PHE), which is expected to be delivered in late 2014.

PHE will pay £0.15m for a system consisting of two fuel cell cartridges, which AFC will deliver, connect and commission, while PHE will prepare the site and provide the required utilities, it explained.

Ian Williamson, Chief Executive of AFC Energy, said: "This agreement is a further step towards our goal for deployment of large scale fuel cell systems in the waste-to-energy sector. We look forward to working closely with PowerHouse to develop and improve the efficiencies of generating electricity from their gasification systems."

PHE will utlise the fuel cell system with its ultra-high temperature gasification technology to ultimately generate clean energy.

The transaction was negotiated by Waste2Tricity under a licensing agreement signed in February 2009. A deposit of £50,000 will be paid in PHE shares, with the balance payable after delivery.

Keith Allaun, the Executive Chairman of PowerHouse, said the transaction was "an exciting development" for the firm, explaining that "the combination of these two advanced technologies has the potential to optimise their environmental advantages and electrical efficiency and if we are able to make the improvements we expect by using a fuel cell it could take waste-to-energy to a new level of operation".

AFC shares declined 1.48% in the first half an hour of trading on Friday, while Powerhouse jumped 10%.

NR

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