CFCL's focus is providing SOFC power for integrated commercially manufactured m-CHP units.  Not all geographic markets are ready for SOFC powered m-CHP appliances.  Currently, the regions that the lead the race in Distributed Generation (DG) and deployment of fuel cell m-CHP units are Europe and Japan.  CFCL's strategy involves taking an active part and working with utilities and appliance manufacturers in these regions.

For example, over 50% Denmark's power generation is from DG capacity (source WADE, 2006).  Europe has some of the highest costs of electricity around the world and the European Union is committed to increasing energy efficiency and dramatically cutting emissions.


CFCL is already involved within the German market.  The regulatory framework within Germany encourages investment, deployment and use of m-CHP systems.  The German Government has reduced the level of Value Added Tax (VAT) applicable to the purchase of CHP systems and has adopted a pricing scheme for electricity generated by CHP units, which is fed into the grid.  The Government further encouraged energy efficiency and the deployment of fuel cell powered CHP by spending €500 million over 10 years on hydrogen and fuel cell innovation as well as implementing Government policies such as the Renewable Energies Act encompassing energy management and large scale expansion of CHP.

United Kingdom

The UK Government has introduced a significant package of measures to support CHP in recent years.  Fuel cell CHP is eligible for Enhanced Capital Allowances to stimulate investment and a reduced 5% sales tax on units.  Units are also eligible for a 50% uplift under the Energy Efficiency Commitment (EEC), payable to utilities. Building Regulations are also being changed to encourage the take up of CHP.  

The UK Government has also set itself a testing target of having 10 GW electric of installed CHP capacity by 2010.  This is backed by a 15% target for Government Departments to use Good Quality CHP generated electricity by 2010.  The UK Government has also pledged £15 million for a hydrogen and fuel cell demonstration programme and, in the March 2006 Budget pledged an extra £50 million for microgeneration technologies.  The Government also announced the formation of a £1bn Energy Technologies Institute to research novel generation technologies, believing microgeneration could provide 30-40% of the UK's electricity needs by 2050.


The Japanese market also faces high costs of electricity and has favourable Government policy for DG and in particular CHP.  Japan has removed a number of regulatory barriers to encourage the development of DG.  Already, a number of internal combustion engine powered m-CHP units are on the market in Japan, with a high proportion of Japanese utilities having subsidiaries that offer DG services.  As early as 2000, the Government has subsidised fuel cell development programs targeting households using 1kW PEMFC powered CHP units as part of the National Energy Development Office (NEDO) Millennium Project.  Now SOFC powered m-CHP units are forming part of Japanese programmes, partly due to the superior levels of efficiency and low emissions.

CFCL is ready to be a part of these programs and is working with regional partners to conduct field trials for the purpose of commercialising CFCL's SOFC technology in mass produced m-CHP appliances.