REG - AFC Energy Plc - ABB Milestone Validation

AFC EnergyAnnouncement

29/03/2023 07:00

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RNS Number : 5447U  AFC Energy Plc  29 March 2023

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29 March 2023

 

 

AFC Energy PLC

("AFC Energy" or the "Company")

 

ABB E-mobility S+ Series Hydrogen Fuel Cell Validation

 

AFC Energy (AIM: AFC), a leading provider of hydrogen power generation
technologies, is pleased to confirm it has successfully delivered and
validated its first cumulative 100kW Liquid Cooled Fuel Cell ("S+ Series")
with partner ABB E-mobility.

 

Highlights

 

·      New S+ Series fuel cell stacks exceeded the cumulative 100kW
target output over validation period

·      New commercial agreement highlights first sale to ABB E-mobility
and prospective sales pipeline

·      S+ Series fuel cells support potential for high power EV
charging, critical back up and maritime applications

AFC Energy has successfully delivered its first high performance, high power
density liquid cooled fuel cells for independent validation as part of its
Sales and Development Agreement with ABB E-mobility.  The liquid cooled
technology, referred to as the "S+" Series (as distinct from the Company's "S"
Air Cooled technology) was delivered to Germany for independent validation in
October 2022 and signifies AFC Energy's first entry into the high power
density fuel cell market.

The milestone is the first of a two-stage development programme first
announced November 2021 that will now see a modular 200kW high power fuel cell
system scheduled for first operation later this year, which will be followed
by product certification immediately thereafter.  The state of the art 200kW
hydrogen power generator unit (and battery system) will then be sold to ABB
E-mobility.

The modular fuel cell design was agreed with ABB E-mobility initially for high
power EV charging, however ABB E-mobility have also identified critical back
up power generation as a new prospective market for the S+ Series.  The S+
Series platform will form the basis of the Company's market entry into
maritime and larger scale off-grid and critical back up power markets.

With a strong focus on a reduced Total Cost of Ownership ("TCO"), AFC Energy
has been working with state of the art manufacturing for low cost fuel cell
technology.  This first successful validation adopts a manufacturing
philosophy considered as one of the pathways capable of delivering lowest cost
fuel cell stacks.

Validation of the S+ Series stacks were witnessed by representatives from ABB
E-mobility, AFC Energy and German engineering house, IAV, at an independent
IAV testing facility in Germany.

The validation saw the successful delivery of over 100kW of cumulative net
power output from the stacks, exceeding contracted targets, and positions AFC
Energy well as it enters into the next phase with ABB E-mobility to deliver on
a modular hydrogen fueled, zero emission 200kW hydrogen power generator this
year.

 

Commercial Highlights and Agreement Modifications

Following successful S+ Series validation, ABB E-mobility and AFC Energy
agreed to review and update the Sales and Development Agreement originally
executed by the two companies in November 2021 (the "Agreement").

In early 2022, ABB E-mobility made a non-refundable payment of £2m to AFC
Energy towards early stage development costs of the S+ Series fuel cell
platform.  Following review of the commercial arrangements between ABB
E-mobility and AFC Energy, the two companies have agreed the following:

·      ABB E-mobility has expressed an intention to invest a further
£2m into AFC Energy by way of a subscription for shares in the Company
replacing the subsequent payments due under the original contract.

 

·      A volume discount on up to 10 x 200kW S+ Series fuel cell system
sales to ABB E-mobility or its direct customers for a defined period of time.
 

 

·      Following completion of the upcoming 200kW S+ Series deployment,
which will now be fuelled exclusively on hydrogen, and receipt by AFC Energy
of relevant product certifications, ownership of the system (including
battery) will transfer to ABB E-mobility.

 

The sales pipeline of 10 x 200kW S+ Series fuel cell systems is eligible to be
applied across sales of fuel cell systems (which are envisaged to include
connected battery systems) to any division or controlled subsidiary of the ABB
group and further highlights ABB E-mobility as a key strategic partner of AFC
Energy.

 

Frank Muehlon, Chief Executive Officer of ABB E-mobility, said:

"AFC Energy is a key strategic partner for ABB E-mobility.  We are pleased to
have reached this first important milestone for our continued collaboration as
we work on the transformation towards a sustainable mobility infrastructure."

 

Adam Bond, Chief Executive Officer at AFC Energy, said:

 

"We continue to see ABB E-mobility as a key strategic partner of AFC Energy
with the validation of our new S+ Series fuel cell system providing strong
evidence of the close working relationship developed between our two companies
in recent years.  AFC Energy is now working with ABB colleagues across
multiple verticals including maritime and date centers for critical back up
power, and we look forwards to highlighting the role of hydrogen in supporting
the decarbonisation displacing diesel generators across the global back up
power market."

 

 

 

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 / Nick Hennis / Dhruv Soni                       afcenergy@fticonsulting.com (mailto:afcenergy@fticonsulting.com)

 

 

About AFC Energy

 

AFC Energy plc is deploying its hydrogen fuel cell systems to provide clean
electricity for on and off grid power needs. The technology, pioneered over
the past twelve years in the UK, is now deployable to support the
electrification of electric vehicle chargers, off-grid decentralised power
systems and data centre back up applications with emerging opportunities
across maritime and rail as part of a portfolio approach to the
decarbonisation of local electricity needs.  The Company also offers
customers a flexibility in sourcing lowest cost hydrogen through a "flexible
fuel" strategy incorporating hydrogen carrier fuels such as ammonia and
methanol and associated fuel conversion technologies.

 

 

 

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