REG - AFC Energy Plc - Exclusive Distribution Agreement with TAMGO

AFC EnergyAnnouncement

04/09/2023 07:00

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RNS Number : 1883L  AFC Energy Plc  04 September 2023

 

 

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4 September 2023

 

 

AFC Energy PLC

("AFC Energy" or the "Company")

 

 

TAMGO to Distribute AFC Energy H-Power Fuel Cell Generators in the Kingdom of
Saudi Arabia and other MENA Markets

 

AFC Energy plc (AIM: AFC) ("AFC Energy"), a leading provider of hydrogen
powered generator technologies, is pleased to announce the signing of an
exclusive distribution agreement (the "Agreement") with Saudi Arabia's The
Machinery Group LLC, trading as TAMGO (www.tamgo.com (http://www.tamgo.com) ).

 

TAMGO is an approved vendor to many of Saudi Arabia's mega and large scale
infrastructure and mining projects including NEOM, Red Sea Global and Qiddiya.
Under the Agreement, TAMGO will market and sell or lease to end-customers AFC
Energy's zero emission hydrogen fueled H-Power Generators in the industrial
and off-grid power markets in the Kingdom of Saudi Arabia and a further 16
countries in the MENA and surrounding region including, amongst others, the
United Arab Emirates, Qatar, Oman, Kuwait and Kazakhstan.

 

With a rental power market valued at USD1.6bn in 2020, and projected to
increase to USD3.2bn by the end of 2030 1  (#_ftn1) , the Saudi and Middle
Eastern markets are a key part of AFC Energy's growth strategy.

 

TAMGO's exclusive dealership rights in the region incorporate AFC Energy's
fuel cell technologies, including name plated generators ranging from 10kW to
200kW.  TAMGO will provide local customer support with on the ground
maintenance and servicing of H-Power Generators along with engineering,
design, commissioning and logistics support direct to customers.

 

TAMGO is a group company of one of Saudi Arabia's leading multi-nationals, the
Zahid Group. The Zahid Group represents international brands in the
Construction Heavy Machinery, Commercial Vehicles, Energy, Water, Oil &
Gas, Manufacturing and Facilities Management sectors in Saudi Arabia, in
addition to actively participating in a further seven other sectors in Saudi
Arabia, both regionally and internationally.

 

TAMGO currently represents international brands such as FG Wilson, Ingersoll
Rand, Doosan Portable Power and Kubota with customers including Aramco and
also Altaaqa Alternative Solutions ("Altaaqa"), another wholly owned Zahid
Group company operating one of the world's largest mobile power modules rental
fleets.

 

The Agreement supercedes and builds on the initial Memorandum of Understanding
signed between Altaaqa and AFC Energy in April 2021.

 

AFC Energy, TAMGO and the Zahid Group have also agreed to assess investment in
local Saudi manufacturing and scale up capabilities consistent with the "Saudi
Made" https://saudimade.sa/en (https://saudimade.sa/en) (MiS) certification
programme.  The MiS programme was launched in March 2021 by Saudi Crown
Prince HRH Mohammed bin Salman in line with the Saudi Vision 2030, to
encourage domestic production in the country. Zahid Group provides
manufacturing capabilities to a portfolio of companies such as Volvo Trucks,
Renault Trucks and UD Trucks with a joint venture delivering locally assembled
trucks to the Saudi and surrounding markets.

 

Rami Elayan, Chief Executive, TAMGO, said:

"TAMGO is delighted to have been appointed as an exclusive distributor for AFC
Energy. This milestone signifies a continued evolution of the collaboration
initiated with AFC Energy back in 2021,and will enhance TAMGO's ability to
provide environmentally-friendly electricity solutions to its customers. With
this agreement, we are confident that our combined efforts will establish a
prominent presence in the Saudi Arabian and broader regional markets for
hydrogen fuel cell generators.

Zahid Group is fully aligned with the Kingdom's forward looking vision, and
across all our Group's companies we are acting on that alignment with concrete
actions."

 

Adam Bond, Chief Executive, AFC Energy, said:

"We are delighted that TAMGO will represent our leading H-Power Generator
platforms in the Saudi and neighbouring markets at a time when sustainable,
temporary power is forecast to materially increase, consistent with national
programmes such as Saudi Arabia's sustainability commitments under the
Kingdom's Vision 2030.  We have been collaborating with TAMGO and the Zahid
Group for the past two years and believe this dealership agreement reflects
our common vision to become the largest dealer of hydrogen fuel cell
generators in the Saudi and MENA regions."

 1  (#_ftnref1) Verified Market Research: Middle East, GCC and Saudi Arabia
Power Rental Market Size By Equipment (Generators, Transformers), By Power
Rating (Up to 50 KW, 51 KW - 500 KW), By End-User (Oil & Gas,
Construction, Manufacturing), By Geographic Scope And Forecast; 2022

 

 

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 a leading provider of hydrogen energy solutions, to provide
clean electricity for on and off grid power applications. The Company's fuel
cell technology is now deployable as electric vehicle chargers, off-grid
decentralised power systems for construction and temporary power with emerging
opportunities across maritime, data centres and rail as part of a portfolio
approach to the decarbonisation of society's growing electrification needs.

 

About TAMGO

 

TAMGO; The Machinery Group  LLC, is a Zahid Group (http://www.zahid.com/)
(http://www.zahid.com/) company that was established in 1991 as part of the
Group's long-standing commitment to supporting the Kingdom of Saudi Arabia's
infrastructural development. TAMGO provides local and regional customers with
a diverse range of best-in-class industrial machinery products and services
that fall within five categories: Power Solutions, Construction Machinery, Air
Compressors and Compressed Air Solutions, Portable Solutions and Pumps.

 

 

 

 

 

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