Ceramic Fuel signs European deal

Australian-based Ceramic Fuel Cells says it has signed a deal to develop its cells in domestic boilers with utility giant Gaz de France and boiler maker De Dietrich Thermique, sending its shares surging.
Ceramic Fuel Cells makes cells which use natural gas to create heat and power inside boiler units.
Shares in Ceramic were up 17.5 per cent at 35.25 pence, the highest level since it floated in March and valuing the company at about STG108 million ($A271.25 million).
Ceramic Fuel Cells' broker Ambrian Partners said the exclusive deal would give Ceramic a virtual monopoly in France because Gaz de France is the largest supplier of gas and the second largest supplier of electricity, while De Dietrich is the French market leader

Gaz de France's decision to partner with Ceramic is undoubtedly the highest validation so far of our belief that its technology is commercially and economically viable," said analyst John-Marc Bunce in a note.
The European chief executive of Ceramic said De Dietrich, which makes around 150,000 boilers a year and is owned by Dutch heating firm Remeha, was the last major European boiler manufacturer to sign a deal with a fuel cell maker.
He said the development deal with both companies was exclusive for the French domestic market.
"This is a very, very big step for our company," said Ceramic's European CEO Brendan Bilton.
Ceramic, which currently produces a small amount of cells at its development facility in Australia, said on Tuesday it would be developing a large-scale manufacturing plant in Germany.
It plans to produce 50,000 1KW fuel cell stacks per year by 2009 and up to 150,000 a year after a second expansion phase.
Shares in fellow fuel cell for domestic boilers developer Ceres Power Plc were down 3.5 per cent.
Ceramic's shares have outperformed Ceres by 58 per cent during the last 12 months.
©AAP 2006