CFCL will be the supplier of choice for reliable and high electrically efficient solid oxide fuel cell products, which manufacturers can easily integrate into micro generation appliances for the European market.

To implement this strategy, CFCL has:

  • Successfully developed and tested its fuel cells, as single cells and integrated stacks;
  • Designed and built the Balance of Plant systems;
  • Integrated its fuel cell stacks with its Balance of Plant into complete CHP demonstration units;
  • Delivered CHP demonstration units to customers for field trials;
  • Designed and built a prototype ‘fuel cell micro-generator’ unit – called ‘Net~Gen™’.
     

To successfully commercialise its technology, the Company intends to:

  • Establish a plant in Europe to produce high quality ceramic powders, which are a key component of solid oxide fuel cells, using the Company’s patented technology;
  • Build and operate a fuel cell stack manufacturing plant in Europe to enable large scale manufacturing of the Company’s fuel cells;
  • Conclude arrangements with appliance manufacturers to incorporate CFCL’s fuel cells into their end-user products;
  • Continue to improve its fuel cells - in particular, power output and stack life – and make it easier for appliance manufacturers to integrate CFCL’s fuel cells and Balance of Plant systems into a range of end user products.  
     

CFCL will focus on implementing this strategy, whilst keeping an eye on other opportunities – from within or outside the fuel cell world - that can generate revenue or otherwise add to shareholder value.

Revenue

Through this strategy, CFCL intends to derive its principal revenues from:

Sales of fuel cell stacks and associated Balance of Plant to appliance manufacturers; and
Sales of replacement fuel cell stacks.
 

Additional potential revenue streams are:

  • Field trial payments;
  • Sale of specialist ceramic powders;
  • Integration services to appliance manufacturers;
  • IP licensing revenue; and
  • Fees for consulting services to license holders.

CFCL believes there are significant barriers to new competitors entering its target markets, most notably the long time required to develop reliable and cost effective fuel cells (and substitute technologies) and the intellectual property portfolios of existing developers.

Distributed electricity generation and in particular, distributed electricity from fuel cells, is still an embryonic market.  CFCL believes that high potential market growth rates, competitor diversity and low levels of over capacity all contribute to relatively high potential industry profitability.

CFCL’s Strategic Capabilities

  • Fuel cell and stack design and development
  • Fuel cell prototyping expertise and flexibility
  • Fuel cell generator design, development and integration expertise
  • End to end design and prototyping (fast response time and excellent quality control).

Implementing the Strategy

CFCL uses a ‘Balanced Score Card’ methodology to implement its Strategy.  This methodology looks at CFCL’s activities through four perspectives:

Financial
 How should we appear to our Shareholders?
 
Customer
 How should we appear to our Customers? 
 Why will Customers value our products and services above our competitors?
 
Internal
 What processes should we excel at to satisfy Stakeholders and Customers?
 
Learning and Growth
 How will we change and improve our Strategic Capabilities?
 

CFCL has developed a number of Strategic Themes to ensure that the strategy can be supported by the Company’s operational structure. 

CFCL’s Strategic Themes are then supported by Strategic Objectives from which measurable Key Performance Indicators (KPI’s) can be derived in order to link employees directly to the delivery of the strategy.

Employees are given a mix of departmental and personal KPI’s to ensure a link between daily activities and the broader strategy.  A financial incentive program has also been introduced as part of the regular performance management systems to link KPI’s and performance to a rewards system.

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