REG - AFC Energy Plc - Keltbray to Lease First Hybrid Fuel Cell System

AFC EnergyAnnouncement

14/03/2022 07:01

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RNS Number : 5630E  AFC Energy Plc  14 March 2022

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14 March 2022

AFC Energy PLC

("AFC Energy" or the "Company")

Keltbray to Lease Hybrid Fuel Cell System for London Construction
Site

 

AFC Energy (AIM: AFC), a leading provider of hydrogen power generation
technologies, is pleased to announce its collaboration with Keltbray for the
lease of the Company's first fuel cell for deployment to a UK construction
site.

Highlights

·       Keltbray is a leading UK based construction and engineering
group with an objective of achieving Net Zero by 2040 or earlier.

 

·       Keltbray has agreed to lease from AFC Energy an initial zero
emission Hybrid Fuel Cell ("HFC") power generator as a showcase of how the
construction industry can decarbonise sites today.

 

·       This will be AFC Energy's first UK HFC deployment with
deployment expected end Q2 2022.

 

·       The two companies have outlined a roadmap to consider further
system deployments in late 2022.

 

·       Location of the first system deployment remains under review
but is expected to be in London.

 

·       Keltbray and AFC Energy will work to build zero emission, fuel
cell power generators into future tenders for construction work in the UK

 

Keltbray is one of the UK's leading construction and engineering contractors
with multiple high-profile projects including the Shard, HS2 and Crossrail.
In September 2021, Keltbray set the target of achieving Net Zero by 2040 or
sooner and made a commitment to support its clients to achieve their own Net
Zero targets across their portfolio of projects.

 

Keltbray and AFC Energy have been working together for the past five months
reviewing zero emission, fuel cell power generators able to accept flex
fuelling strategies across Hydrogen, Ammonia and Methanol as a means of
delivering on Net Zero aspirations in a timely manner.

 

With the removal of the UK's £0.4861 per litre Red Diesel subsidy from April
2022, together with recent increases in the price of diesel fuel, construction
and other temporary power users are facing material increases in the cost of
using diesel generators relative to the cost of clean alternatives such as
fuel cell technologies.

 

Today, Keltbray and AFC Energy are announcing a collaboration that will see:

 

1.     the lease of Keltbray's first HFC power generator at a construction
site likely to be located in London;

2.     a roadmap for further system deployments from late 2022; and

3.     both companies work with local plant hire businesses to encourage
the transition away from diesel fuelled temporary power.

 

Under the collaboration, AFC Energy will source and supply Hydrogen to
Keltbray on commercial terms in addition to supplying the HFC system.
Keltbray will take the role of operator of the HFC system with AFC Energy
providing requisite training to on site operators.

 

This will be the Company's first HFC system deployment in the UK and is a
further example of the strong and immediate customer interest in the latest
zero emission power generator technologies being commercialised by AFC
Energy.

 

Kiro Tamer, Head of Environmental Sustainability at Keltbray, said: "We're
pleased to be announcing our collaboration with AFC Energy, this is an
important step forward in our journey towards a Net Zero future. Keltbray
strives to make a positive contribution to the planet and this partnership
allows us to further accelerate the sector's transition to a more sustainable
world. Collaboration is key in achieving real change and the whole sector must
work together to ensure we transform how we deliver the built environment. The
use of this innovative technology allows us to play a key role in assisting
the industry in reducing its reliance on fossil fuels."

 

Adam Bond, Chief Executive Officer at AFC Energy, said: "AFC Energy is
excited to be announcing our collaboration with Keltbray today, highlighting
how industry is increasingly playing its role in delivering on society's Net
Zero aspiration here in the UK.  As an innovative and socially responsible UK
contractor, Keltbray continues to show great leadership in highlighting,
through adoption of hydrogen fuel cell power generator technology, how the
construction industry is seeing the benefit of displacing highly pollutant
fossil fuels in favour of cutting-edge clean energy solutions.  We are most
pleased to be supporting Keltbray, its clients and the sector's transition
towards a more sustainable future".

 

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 / Alexander Allen
 M C Peat & Co LLP - Joint Broker                               +44 (0) 20 7104 2334

 Charlie Peat
 Zeus Capital Limited - Joint Broker

 Daniel Harris (Corporate Finance)                              +44 (0) 203 829 5000

 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 "fuel flexible" 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.

 

About Keltbray

Keltbray is a leading multi-disciplinary engineering and construction services
business, offering a uniquely integrated delivery capability spanning key
phases of the client value chain.

Keltbray provides certainty of outcome for prestigious public and private
sector clients often in highly regulated markets like rail and energy,
contributing to the development and maintenance of Britain's rapidly changing
economic and social infrastructure.

Our professionally accredited teams of engineering and construction
professionals take pride in delivering safely and sustainably to enhance,
upgrade and decarbonise our clients' capital assets.

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