REG - AFC Energy Plc - “Ammonia to Hydrogen” Cracker Technology Launch

AFC EnergyAnnouncement

23/03/2023 07:15

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RNS Number : 9323T  AFC Energy Plc  23 March 2023

 

23 March 2023

 

 

AFC Energy PLC

("AFC Energy" or the "Company")

 

 

Advanced "Ammonia to Hydrogen" Cracker Technology Launch

 

 

AFC Energy (AIM: AFC), a leading provider of hydrogen power generation
technologies, is pleased to announce the launch of its new advanced ammonia
cracker technology platform.

 

The Company's new cracker technology is an innovative, new hydrogen generation
solution that aims to unlock the value of ammonia as a hydrogen carrier fuel
across target markets in Europe and Asia.

 

The Hydrogen Council now predicts that investment in international hydrogen
trade is forecast to grow to US$150 billion by 2030, before increasing to
US$1.5 trillion by 2050.  A large percentage is forecast to be via synthetic
fuels such as ammonia, highlighting the high growth in demand for ammonia
cracking technology in order to liberate hydrogen from the carrier fuel.

 

Originally focused on maritime applications, AFC Energy's modular, scalable
ammonia cracker technology will support the decentralized generation of low
cost hydrogen, further enabling the Company's fuel cell technology in regions
affected by hydrogen storage and transport challenges.  The cracker will also
create new commercial opportunities as a standalone product capable for
stationary, modular hydrogen generation across the global hydrogen value
chain.

 

The launch follows extensive cracker reactor validation testing over the past
two years and completed in March at the Company's UK test facilities.  Larger
modular cracker system prototypes are expected within twelve months and
initial commercial deployments expected during 2025.

 

AFC Energy's ammonia cracker is complementary to the Company's existing fuel
cell platform and supports fuel cell system salability in key markets where
hydrogen supply logistics can be challenging.

 

AFC Energy is seeing interest from European utilities, green and blue ammonia
producers, ship owners, and heavy plant and equipment manufacturers and
exploring near term commercial partnerships.

 

The cracker technology has now been accelerated in response to the material
growth in ammonia imports being contracted into Europe (as a hydrogen carrier
fuel) to support the EU's sustainable energy policies and address energy
independence challenges arising out of the Ukraine conflict.
 

 

 

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

 

"AFC Energy's new ammonia cracking technology platform now takes us into the
hydrogen generation market facilitating renewed energy security and
reliability.  Clean ammonia is a preferred means of transporting hydrogen to
end users, particularly in Europe and Asia, and with today's technology
launch, AFC Energy is targeting these key markets to enable a faster, more
widespread adoption of hydrogen where storage and transportation challenges
might otherwise present short-term challenges.

 

"Consistent with our "flex fuel" strategy launched last year, AFC Energy's low
cost, modular ammonia cracker aims to enable a broader "ammonia to power"
opportunity utilising our existing proprietary fuel cell technology. It also
opens new markets for our partners to exploit as a hydrogen refueller in
support of heavy duty motive applications.

 

"AFC Energy's ammonia cracker technology continues to position the UK at the
leading edge of the hydrogen economy and positions us to support Europe's
wider aspirations around decarbonisation, as well as energy independence and
security in today's volatile energy 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 / Caroline Cutler / Dhruv Soni                   afcenergy@fticonsulting.com (mailto:afcenergy@fticonsulting.com)

 

 

 

Background - Ammonia Cracker Market Opportunity

 

·      Ammonia is derived from a combination of hydrogen and nitrogen
molecules (NH3) without the presence of carbon, meaning it emits no CO2 when
consumed.

 

·      Ammonia is an excellent hydrogen carrier fuel as it is relatively
easy to transport and can be stored at atmospheric temperature when
pressurised.

 

·      Demand for ammonia as a hydrogen carrier fuel is predicted to
grow exponentially, creating a significant market for cracker technology:

 

o  Future Market Insights predicts green ammonia demand growth of c.72% from
now until 2032 and the IEA's "World Energy Outlook 2022" predicts ammonia will
become the leading green shipping fuel over the next few decades.

 

o  The Hydrogen Council, in its 2022 report "Global Hydrogen Flows", predicts
that up to 45% of hydrogen flows will be transported to end users via hydrogen
carrier derivatives such as ammonia.  Cracking technology could be adopted
both at port and across a distributed network of hydrogen refueller sites.

 

o  Ammonia is expected to account for 45% of the global shipping fleet's
decarbonisation (IEA) with cracker deployment potential for each vessel

 

·      AFC Energy's advanced ammonia cracker platform is designed to
offer solutions across a number of markets.  This could include, through
integration with AFC Energy's fuel cell technologies, on board maritime
vessels, but equally, the cracker technology could be deployed to enable
refueling of fuel cell trucks and buses where the cost of delivering hydrogen
infrastructure is cost prohibitive.

 

·      One use case currently under consideration is the centralised
cracking of ammonia at remote construction sites with the ability to deliver
hydrogen to site in the form of ammonia, crack it into hydrogen and consume
the hydrogen in an AFC Energy fuel cell power generator, refuel a hydrogen
logistics truck, provide hydrogen for combustion in a hydrogen engine or
simply refuel onsite fuel cell diggers.

 

·      Modular cracker design and low-cost system architecture makes the
cracker readily scalable from small-scale hydrogen production to multi-million
tonnes per annum

 

·      The forecast low-cost cracker production cost, scalability of
design, engineering modularity, fast response time, high efficiency and the
ability to fully integrate with AFC Energy's own fuel cell technology offers a
competitive advantage in the market today.

 

 

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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