Ceramic Fuel Cells sales jump 43%, but needs more growth

ASX-listed small-scale power generation company Ceramic Fuel cells has marked a 43 percent increase in sales for the year ended June 30, but warns that it will need even higher unit sales to continue to sustain the business.

The Melbourne-based fuel cell technology company said it had sold 210 of its benchmark BlueGEN units in the year – up from 147 units a year earlier – and 71 in the June quarter alone.

“Whilst this is a substantial improvement on the March quarter’s 15 units, the company has previously acknowledged that this level of sales will not sustain the business and is focusing its limited sales resources on large, project-based sales in both the UK and Europe,” the company said in a statement to the ASX.

“Development of these large-scale projects is progressing and the board is confident that a number of these targeted projects will be converted in to orders in the near future.”

One of Australia’s top cleantech inventions, Ceramic’s ground-breaking BlueGEN gas-to-power and heat fuel cells did not take off in their country of origin, forcing the company to adopt a new strategy, confirmed in 2012, to cut commercial ties with Australia and focus its efforts on international markets instead – particularly the UK and Germany.

The move was spurred by then new incentive payments in the German state of North Rhine-Westphalia – and the distinct lack thereof, in Australia – which Ceramic said would “take away the sticker shock” of the estimated €30,000 cost ($A37,400) of its ground breaking Blue-gen units, and pave the way for high volume production and cost reductions.

Two years later, the company is still “pursuing strategic partnerships with distribution partners in Europe, Asia and North America” and says it remains confident of gaining orders in the “near future” as a result.

During the June quarter Ameland, in the Netherlands, purchased 40 units and 5 German installers purchased multiple units, the company said in the results announcement.

Ceramic said it was pleased with the increase in sales via its installers, given the reduction in its direct sales force in March. During the quarter Avilos took the first 2 units under their agreement with the Company.