Ceramic Fuel Cells Limited (ASX code CFU) and szencorp are pleased to announce that a CFCL fuel cell unit has been commissioned at szencorp's ground breaking energy efficient commercial office building at 40 Albert Road, South Melbourne.

The szencorp building incorporates a demonstration version of CFCL's fuel cell powered domestic combined heat and power (micro-CHP) unit, designed to produce 1kW electricity and heat for hot water.

The CHP unit converts natural gas into electricity and heat through an electrochemical process, rather than direct combustion, which results in significantly higher energy efficiency and lower greenhouse emissions than conventional coal-fired power stations.

The unit was installed at the site last year and has now been tested and commissioned, with an operating fuel cell stack. CFCL and szencorp will test and evaluate how the demonstration unit performs in 'real world' conditions.

"We're delighted to have commissioned the unit", said CFCL's Chief Operations Officer John Rajoo. "Our initial focus for the field trial is to evaluate the reliability of the complete system and 'balance of plant' components, which are all the parts of the CHP unit that sit around the fuel cell - like the gas systems, control software, electronics and the hot water system. We'll then look to increase the power output of the fuel cell stack and export power to the grid."

Tony Dorotic, manager of the szencorp building, said distributed generation solutions like CFCL's fuel cell unit were the way forward for commercial buildings. "We're proud to be showcasing leading Australian 'clean technology' like CFCL's fuel cell unit. The szencorp building is a real, working example of how building owners and tenants can be smart with energy and the environment, and provide a great working environment" he said.

Another CFCL demonstration CHP unit is being trialled with Powerco in New Zealand and a further unit is scheduled to be delivered to a Powerco partner in Tasmania, in early 2006, once site works are complete. Two units have also been dispatched to EWE in Germany.

The szencorp building was the first retrofit in Australia to receive a 5 star Australian Green Building Rating (AGBR) commitment, and the first occupied refurbished building with a 6 Green Star rating from the Green Building Council of Australia.

---------------

This announcement, and all prior CFCL announcements, are available at ASX's website (click here). (If your browser does not support links, go direct to www.asx.com.au and seach for announcements by CFU.)
---------------------------------------------------

More information about CFCL - including presentations, announcements and images for download - is available at www.cfcl.com.au.
More informatiuon about szencorp is available at www.ourgreenoffice.com


Regards


Andrew Neilson
Legal and Commercial Manager (Company Secretary)
CERAMIC FUEL CELLS LIMITED
Tel: +61 (0)3 9554 2300
Email: investor@cfcl.com.au
Website: www.cfcl.com.au