REG - AFC Energy Plc - New JV with Industrial Chemicals Group

AFC EnergyAnnouncement

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RNS Number : 7048P  AFC Energy Plc  04 July 2025

 

 

4 July 2025

 

 

AFC Energy PLC

("AFC Energy" or the "Company")

 

 

New Joint Venture with Industrial Chemicals Group to Produce Hydrogen from
Ammonia

 

AFC Energy plc (AIM: AFC) ("AFC Energy"), a leading provider of hydrogen
powered generator technologies, and Industrial Chemicals Group Limited
("ICL"), one of the UK's largest independent chemical manufacturing and
distribution companies, are pleased to announce their agreement to form a
joint venture ("JV") to produce hydrogen from ammonia.

 

Highlights:

 

·      50:50 JV to produce hydrogen using AFC Energy's proprietary,
leading ammonia cracking technology.

·      JV to produce and sell hydrogen at a price to disrupt the UK
market, without reliance on Government subsidies.

·      JV to leverage ICL's ammonia procurement, logistics capabilities
and customer base and AFC Energy's proprietary, leading cracking technology.

·      Initial revenues expected in early 2026, subject to permitting,
generating up to 400kg/day of hydrogen, followed by incremental capacity
through AFC Energy's Hy-5 portable, containerised ammonia crackers capable of
generating up to 500kg/day.

 

AFC Energy and ICL have agreed terms to incorporate the JV, with further
detailed terms to be agreed between the parties. Once established, the JV will
initially acquire AFC Energy's pilot ammonia cracking plant and hydrogen
compression system in Q4 2025 (subject to permitting requirements) with
initial revenues expected in early 2026.  This will be followed by the sale
of Hy-5 units to the JV once productionised.

 

Utilisation of low-cost ammonia and cracking it, will provide the JV's
customers with access to low cost and low carbon hydrogen without the need for
large-scale domestic hydrogen production facilities. Ammonia is a globally
established commodity, with existing infrastructure for storage and transport,
making it a cost-effective hydrogen carrier. This approach reduces the upfront
investment required for hydrogen infrastructure but also supports the UK's
net-zero goals by enabling a flexible and economically viable hydrogen supply
chain.

 

 

John Wilson, Chief Executive of AFC Energy, said:

 

"The establishment of the JV with ICL is an exciting step in delivering our
strategy to deliver commercial viability of the hydrogen economy, without
reliance on Government subsidies. We have been working with ICL for some time
to develop the JV and are delighted to collaborate with a partner of ICL's
capability and experience to deliver low-cost hydrogen at a market disruptive
price. In anticipation of regular imports of green ammonia becoming widely
available in the UK from 2027, the JV is well positioned to take advantage of
the relative ease with which ammonia can be stored in low-cost and low
pressure liquified gas tanks compared to high capital costs in storing
hydrogen and further benefit from significant cost advantages versus UK
production from electrolysis."

 

 

For further information, please contact:

 

 AFC Energy plc                                                      +44 (0) 14 8327 6726

 John Wilson (Chief Executive Officer)                               investors@afcenergy.com (mailto:investors@afcenergy.com)

 Karl Bostock (Chief Financial Officer)

 Peel Hunt LLP - Nominated Adviser and Joint Broker                  +44 (0) 207 418 8900

 Richard Crichton / Georgia Langoulant / Emily Bhasin
 Zeus - Joint Broker                                                 +44 (0) 203 829 5000

 David Foreman / James Hornigold (Investment Banking)

 Dominic King (Corporate Broking) / Rupert Woolfenden (Sales)

 RBC Capital Markets - Joint Broker                                  +44 (0) 20 7653 4000

 Matthew Coakes / Teri Su

 Eduardo Famini / James Maitland

 FTI Consulting - Financial PR Advisors                              +44 (0) 203 727 1000

 Ben Brewerton / Chris Laing / Evie Taylor                           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.

 

The Company's proprietary ammonia cracking technology further highlights
emerging opportunities across the distributed hydrogen production market with
a focus on hydrogen's role in supporting industries facing challenges in
decarbonisation, such as mining, cement and heavy engineering.

 

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