RCS - AFC Energy Plc - Stade Update

AFC EnergyAnnouncement

18/07/2023 07:00

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RNS Number : 2854G  AFC Energy Plc  18 July 2023

 

18 July 2023

 

 

AFC Energy PLC

("AFC Energy" or the "Company")

 

AFC Energy's German Facility Prepares for Growth in Fuel Cell Factory
Acceptance Testing

 

AFC Energy (AIM: AFC), a leading provider of hydrogen power generation
technologies, is pleased to confirm it has renewed its Air Products GmbH ("Air
Products") collaboration with a five year hydrogen supply agreement and site
lease at Stade in Northern Germany.

 

Highlights

 

·      Stade facility to become AFC Energy's preferred facility for
H-Power Generator factory acceptance testing ("FAT") in preparation for growth
in system deployments.

·      Collaboration includes a five year hydrogen offtake agreement at
the Stade site near Hamburg.

·      Confirms AFC Energy's commitment to the European hydrogen market,
in particular Germany, which continues to see sizeable growth in market size
and hydrogen availability.

·      Germany chosen for FAT due to a materially lower price of
hydrogen fuel versus the UK

·      Review to be undertaken for co-locating further development and
large scale contract manufacturing of H-Power Generators in Germany or Europe
to take advantage of growing market interest.

AFC Energy is pleased to announce the renewal of its collaboration with Air
Products, the world's largest hydrogen producer, through the repurposing of
the Company's existing hydrogen fuel cell facility in Stade, North Germany.

The site, originally constructed in 2015 by AFC Energy to house the EU
co-funded "Power-Up" programme, will now be repurposed to provide FAT of its
H-Power Generator series of fuel cell systems.  With the site's existing
hydrogen supply infrastructure and grid connection, the repurposing of the
site will require nominal investment.

The Stade facility is expected to employ a small number of local staff to
conduct system testing and diagnostics in advance of customer deployments.
It will also position AFC Energy to support a growing number of H-Power
Generator deployments in Germany and Continental Europe.

The European Union continues to invest heavily in its hydrogen sector, with
Germany in particular playing a lead role in the adoption of the decarbonised
fuel.  As AFC Energy grows its pipeline of projects and deployments, it is
important that the Company secures its footprint in the EU.

Germany is also seeing materially lower cost hydrogen available for commercial
and facility based usage, making the decision to position AFC Energy's FAT in
Germany not only a sound strategic decision, but also one which is expected to
provide substantial savings to the Company over the life of the Air Products
hydrogen supply agreement.

As a consequence of this decision, AFC Energy is also commissioning a study
into the potential co-location of development and large scale contract
manufacturing facilities in Germany to support the growth in system
deployments.  Germany benefits from an existing supply chain for fuel cell
components with a large number of automotive and skilled manufacturing
facilities able to meet the projected fuel cell pipeline.

Adam Bond, Chief Executive Officer at AFC Energy, said: "The repurposing of
our Stade facility creates a solid footprint within Germany and the wider EU
hydrogen market whilst providing a cost effective path for our H-Power
Generator factory acceptance testing programme.  The market for zero emission
off-grid power generation continues to grow internationally with our Stade
facility now set to become a further catalyst in the delivery of H-Power
Generators within one of the world's fastest growing hydrogen markets."

 

For further information, please contact:

 

 AFC Energy plc                                                 +44 (0) 14 8327 6726

 Adam Bond (Chief Executive Officer)                            investors@afcenergy.com (mailto:investors@afcenergy.com)

 Peel Hunt LLP - Nominated Adviser and Joint Broker             +44 (0) 207 418 8900

 Richard Crichton / Tom Ballard / Georgia Langoulant
 Zeus - Joint Broker                                            +44 (0) 203 829 5000

 David Foreman / James Hornigold (Investment Banking)

 Dominic King (Corporate Broking) / Rupert Woolfenden (Sales)

 FTI Consulting - Financial PR Advisors                         +44 (0) 203 727 1000

 Ben Brewerton / Tilly Abraham / Dhruv Soni                     afcenergy@fticonsulting.com (mailto:afcenergy@fticonsulting.com)

 

 

About AFC Energy

 

AFC Energy plc is commercialising scalable "flex fuel" fuel cell systems, to
provide clean electricity for on and off grid applications. The technology,
pioneered over the past twelve years in the UK, is now deployable in electric
vehicle chargers, off-grid decentralised power systems and data centre
applications with emerging opportunities across maritime and rail as part of a
portfolio approach to the decarbonisation of local electricity needs.

 

 

 

 

 

 

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