Trading Update

17 Jul 2009 07:00



17 July 2009  

Acta S.p.A. ("Acta" or the "Company")

Trading Update

Acta, the catalyst technology development company, issues the following trading update today for the six months to 30 June 2009. The interim results are expected to be announced on Thursday 24  September 2009. 

Commercial and Technical Review

Acta has continued to make progress alongside its commercial partners during the period despite a difficult economic background, and of particular note has been the acceleration of the commercial opportunity for the water electrolyser. 

Following the well received presentation of its innovative water electrolyser at the Fuel Cell Expo in Tokyo Acta has continued to develop this breakthrough technology towards full prototype and demonstration  unit while developing plans for its commercial launch. Negotiations are in progress with manufacturers of small to mid-sized hydrogen-air fuel cell products, who have recognised the commercial potential of Acta's electrolyser system as a fuel cell "recharger".

Acta's precious metal-free water electrolyser is able to produce clean, dry, low cost pressurised, hydrogen, making it ideal for refilling hydrogen cylinders or hydride canisters, which are the most common forms of hydrogen storage for medium-sized fuel cell applications (eg personal / light transport applications UPS's, remote generators, etc). Therefore, in addition to industrial gas applications, it has the potential to enable fuel cell applications to be launched to the industrial and consumer markets, where difficulties in refilling the hydrogen supply has previously delayed customer acceptance.

During the first half of 2009 Acta completed the second stage of its development contract with a major Asian manufacturer and Sumitomo Corporation, again meeting the technical objectives on time and in full. The next stage of the contract is now under negotiation, although, as previously announced, this is expected to be at a lower value than previous stages.

Acta is continuing to develop its most promising catalyst applications together with major customers.  Such  applications include specialised ammonia cracking catalysts and catalysts for zinc-air batteries.   Commercial progress continues and is expected to accelerate in these areas again as economic conditions improve.

Financial Review

Acta has performed in line with expectations during the first half of 2009. The cost reductions put in place at the end of 2008 have shown benefit through the first half, with a significant reduction in losses and cash out flow. The receipt of €505,000 financing from the FIT grant project has also benefitted cash flow in the period and, in June, Acta's application for a €212,000 Italian government contribution to prior research and development costs was approved, which will benefit cash flow during the remainder of 2009. The group's cash position at 30 June 2009 was €5.4 million. 

Paolo Bert, Chief Executive, commented: 

"Economic conditions continue to impact our customers' investments in research and development, and we therefore remain cautious in our financial planning and outlook. Nevertheless we remain encouraged by the progress with our commercial partners and particularly pleased with the commercial interest shown in our water electrolyser technology, which appears to have good near term commercial potential as a recharger for fuel cell devices. We are currently scaling this technology up to a full-size prototype and demonstration unit before the end of 2009, while pursuing partnerships and developing the business model to bring this product to commercial launch in 2010."

- Ends -

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Notes to Editors

About Acta 

Acta develops and manufactures unique patented catalysts which have been launched to the renewable energy, automotive, battery and industrial markets. Acta is also developing other commercial opportunities using its catalysts for industrial waste treatment.

Acta's catalysts and alkaline system know-how are at the heart of the Company's development of a new, high pressure water electrolyser technology which has demonstrated low cost, noble metal free, high pressure hydrogen generation. Combined with a platinum free fuel cell, the system offers a solution to the problem of how to store surplus energy produced from large scale, intermittent renewable energy sources (eg wind farms).

Acta's catalysts are also undergoing customer tests in applications such as ammonia treatment (removal of ammonia from industrial waste streams), hydrogen production by ammonia and ethanol reforming, and zinc-air batteries (a high performance and environmentally friendly battery technology), as well as fuel cell and other applications.