REG - AFC Energy Plc - H-Power Tower Deployment Update

AFC EnergyAnnouncement

09/03/2023 07:00

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RNS Number : 3564S  AFC Energy Plc  09 March 2023

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9 March 2023

 

AFC Energy PLC

("AFC Energy" or the "Company")

 

H-Power Tower Deployment Update

 

AFC Energy (AIM: AFC), a leading provider of hydrogen power generation
technologies, is pleased to provide an update on its H-Power Tower deployment
programme following system validations in 2022.

 

Highlights

 

·      H-Power Towers leased for >7,000 hours to date into the UK and
European construction market

·      New contracts signed for >8,000 hours of H-Power Tower lease
hire in 2023 so far

·      Growing order book supported by increase in customer proposals
 

·    Initial pricing for leases supports sub two year pay back on capital
costs with significant capital cost reductions targeted for 2023

·      Extension of Keltbray H-Power Tower lease agreement for six
months at M621 highways project in Leeds

·      New lease agreement signed with Taylor Woodrow, civil engineering
division of global contractor Vinci Construction UK, for H-Power Tower
deployment in Bedfordshire alongside National Grid site

·      New lease agreement signed with Colas Rail for H-Power Tower
deployment on the Signaling Framework contract at the Gloucester Area Life
Extension Project

·      Successful completion of first Kier H-Power Tower deployment at
Plymouth construction camp

AFC Energy is offering a zero emissions power generation solution to the
delivery of sustainable UK and European construction markets through its
H-Power Tower launched last year.

The H-Power Tower deployments to date, coupled with a growing pipeline of
deployments contracted for 2023, highlights the clear role hydrogen is set to
play in supporting the decarbonisation of hard to abate industries such as
construction.

Customer feedback has been immensely valuable in shaping future specifications
of AFC Energy hydrogen power generator platforms and, alongside our early
mover customers, we are working to deliver larger systems into 2023, building
on the success of the H-Power Tower design.

Early H-Power Tower deployments are being delivered under commercial lease
hire agreements which, at present pricing, delivers a capital pay back within
two years.  This model further supports early market penetration to end
customers.  In due course, we expect to grow system sales to traditional
plant hire businesses.

AFC Energy designs and builds its own fuel cell systems for input into
customer friendly packaging.  This unique selling point in our market
offering allows continuous technology upgrades to better align customer
feedback with our system's design, highlighting a path to a lower total cost
of ownership to end users.

In 2023, we are working towards a material reduction in capital cost per
system, measured on a per kW basis, which, together with +50% efficiency
achieved on fuel conversion in the field to date, creates a platform for a
competitive total cost of ownership relative to peers.

In one of our recent field deployments, the customer, using real life data,
compared fuel costs of AFC Energy's H-Power Tower to their incumbent diesel
generators, and concluded AFC Energy's cost per kW of fuel used was just a 14%
premium to diesel, despite the current high pricing for hydrogen.  Yet, with
a more competitively priced, longer term hydrogen supply agreement, fuel cost
parity could be achieved today.

AFC Energy continues to work closely with its customers and partners to
enhance and significantly reduce the cost of its hydrogen generator systems
and looks forward to further announcements on system enhancements and new
deployments throughout 2023.

 

 

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

 

"It is great to see the strong market interest in AFC Energy's new hydrogen
power generators and particularly the uptake in the H-Power Tower launched
last year.  We continue to see growth in our pipeline for 2023 and look
forwards to working with new customers, both here and across Europe, to affirm
hydrogen's role in supporting the decarbonisation of hard to abate sectors
like construction."

 

 

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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