REG - AFC Energy Plc - AFC Energy Secures £4.3m UK Government Grant

AFC EnergyAnnouncement

26/07/2023 07:00

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RNS Number : 1649H  AFC Energy Plc  26 July 2023

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26 July 2023

 

 

AFC Energy PLC

("AFC Energy" or the "Company")

 

AFC Energy Secures £4.3m UK Government Grant

 

 

AFC Energy (AIM: AFC), a leading provider of hydrogen power generation
technologies, is pleased to announce that, along with its consortium partners,
it has been awarded a grant of up to £4.8m, from the UK Government's red
diesel replacement programme ("RDR").

 

As consortium lead, AFC Energy will be able to recover up to £4.3m of the
total £4.8m granted, on a match funding basis.

 

The RDR programme, administered by the Department for Energy Security and Net
Zero, is focused on the construction, mining and quarrying sectors and will
provide up to £40 million of matched funding, as part of the £1 billion Net
Zero Innovation Portfolio (NZIP), which aims to accelerate the
commercialisation of innovative clean energy technologies and processes
through the 2020s and 2030s.

 

The grant follows and recognises the field testing of AFC Energy's air cooled
H-Power Tower generators on UK construction sites over the past year. The RDR
grant will support the Company to accelerate the development and
commercialisation of its next generation of larger scale hydrogen powered
generators, both air cooled (S Series) and liquid cooled (S+ Series), by
funding the first UK field deployments of this next generation.

 

The ultimate objective is the complete displacement of incumbent diesel usage
on remote sites, which will further highlight the increasing role hydrogen
fuel is playing in the decarbonisation of traditionally hard to abate sectors
such as construction, quarrying and mining.

 

A key element of AFC Energy's successful funding application was its proximity
to scaling up, both in terms of technology and commercial sales, along with
its close alignment to construction contractors and plant hire businesses, one
of whom provided a strong letter of support to AFC Energy's application
process.

 

The consortium partners are:

·      Brett Aggregates - part of Brett Group, which is the largest
independent building materials group in the UK; and

·      Energy Solutions - a UK based provider of hybrid battery and
energy storage solutions.

 

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

"Having successfully delivered on our commitment to field deploy multiple
H-Power Tower Generators with customers and partners over the past eighteen
months, it is clear industry is increasingly ready to transition away from
polluting diesel generators at construction and temporary power sites.
Confirmation of our consortium's success in the Government's RDR Programme is
a nationally significant funding commitment that demonstrates the commitment
by governments and industry to decarbonise off-grid power generation through
zero emission hydrogen fueled generators."

 

Bill Brett, Chairman, Brett Group, said:

 

"We are delighted to be collaborating in the development of clean energy power
generation alternatives to accelerate the replacement of diesel generation and
supporting the decarbonisation of the building materials industry."

 

 Mark Penny, Commercial Director at Energy Solutions said:

 

"We are delighted to be partnering with AFC Energy in the Red Diesel
Replacement grant. The opportunity to develop emission free offgrid power that
has many applications from construction sites to mining is a very exciting
prospect."

 

 

 

 

 

 

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

 Richard Crichton / Tom Ballard / Georgia Langoulant            +44 (0) 207 418 8900

 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 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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