REG - AFC Energy Plc - Operational Update

AFC EnergyAnnouncement

13/06/2025 07:00

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RNS Number : 7530M  AFC Energy Plc  13 June 2025

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13 June 2025

 

 

AFC Energy plc

("AFC Energy" or the "Company")

 

Operational Update

Agreement Signed for Supply of Fuel Cell Systems

and

Strategic Partnership with Volex plc

 

 

AFC Energy (AIM: AFC), a leading provider of hydrogen power generation
technologies, provides an update on progress on cost optimisation initiatives
for its 30kW hydrogen fuel cell generator:

 

Highlights:

 

·    Cost reduction of c.85% from current build cost, achieved through
adoption of low cost stack technology and value engineering exercise.

·      Supply agreement signed for future supply of fuel cell systems to
support demand.

·      Plans well progressed for volume manufacturing, with intention to
enter into global strategic partnership with Volex Plc, a leading global
integrated manufacturing specialist, to support AFC volume growth plans.

 

Following the signing of a supply agreement for custom fuel cell systems, in
conjunction with an extensive value engineering exercise, AFC Energy has
reduced the build cost of its 30kW hydrogen fuel cell generators by c.85%.
This exceeds the Company's target for substantial generator cost reductions
and helps to drive adoption of our technology to displace diesel, together
with our hydrogen production capability, at cost parity.

 

AFC Energy and Volex Plc are working together with the intention to enter into
a global strategic manufacturing partnership to support AFC Energy in driving
cost down further through materials leverage and economies of scale.

 

John Wilson, CEO of AFC Energy plc commented:

 

"As previously announced, our strategy is to deliver commercial viability of
the hydrogen economy, without reliance on Government subsidy.  In April,
alongside our results, we announced an aggressive plan to target a significant
reduction of the cost of our 30kW hydrogen fuel cell generators to drive
market adoption.  I'm delighted that this ambition has been fulfilled, with
an expected c.85% reduction, and we target mid-2026 for delivery of our first
low cost generators.  We are grateful for the support of Volex Plc to date
and look forward to developing our strategic partnership."

 

 

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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