Ceramic Fuel Cells Limited, (AIM/ASX:CFU) a leading developer of high efficiency and low emission electricity generation units for homes and other buildings, has sold three BlueGen gas-to-electricity generators to one of the UK's leading energy companies, E.ON.

One BlueGen will be installed in early 2011 at the E.ON training centre in Tipton, where E.ON's Property Services department trains its staff in the installation and maintenance of gas and electrical appliances. The other two BlueGen units will be installed at demonstration sites.

BlueGen uses ceramic fuel cells to turn natural gas into electricity and heat for hot water. BlueGen units can generate electricity far more efficiently than the current power grid, providing significant cost savings to energy bills and large carbon savings.

Each BlueGen unit can produce three times the electricity needed to power an average UK home. The UK Government's feed-in tariff pays 10 pence for every kilowatt hour of electricity generated by small scale co-generation products, plus an additional 3 pence for every kilowatt hour of electricity sold back to the local power grid. BlueGen also produces enough heat to satisfy the average UK home's daily needs for hot water.

Ceramic Fuel Cells is continuing to make progress towards having BlueGen certified under the Microgeneration Certification Scheme in order to access the UK Government's feed in tariff. The Company is working towards achieving certification as soon as practicable, and will give a further update towards the end of January 2011.

In parallel with installing three BlueGen units, Ceramic Fuel Cells and E.ON are continuing to develop fully integrated power and heating products for the UK market. In this project, integrated units are installed with appliance company Gledhill and in a test house with EA Technology. Under a product development agreement signed in 2009, Ceramic Fuel Cells and E.ON have agreed the development stages to move into production of commercial units. The partners are currently discussing the project plan details for the next phase of product development and deployment.