REG - AFC Energy Plc - Purchase of Assets from Octopus Hydrogen

AFC EnergyAnnouncement

17/11/2023 07:00

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RNS Number : 7499T  AFC Energy Plc  17 November 2023

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17 November 2023

 

 

AFC Energy PLC

("AFC Energy" or the "Company")

 

Purchase of UK Mobile Hydrogen Storage and Distribution Assets from Octopus
Hydrogen

 

AFC Energy (AIM: AFC), a leading provider of hydrogen power generation
technologies, is pleased to announce it has reached agreement to purchase
certain UK mobile hydrogen storage and distribution assets from Octopus
Hydrogen, part of the Octopus Energy Group.

 

Highlights

 

·      AFC Energy purchases, for an undisclosed sum, UK mobile hydrogen
storage and distribution assets ("the Assets") from Octopus Hydrogen.

 

·      The Assets provide immediate logistics capability for the supply
of hydrogen fuel to AFC Energy's growing number of H-Power Generator sets
across the UK, such as through Speedy Hydrogen Solutions.

 

·      The acquisition strengthens AFC Energy's leading position across
an integrated UK hydrogen value chain.

 

 

AFC Energy's acquisition of Octopus Hydrogen's Assets is the next step in
bringing to market a local distributed hydrogen supply logistics capability
that supports the deployment of H-Power Generators across the UK.

 

Through its investment into ammonia cracking and now hydrogen storage and
logistics assets, AFC Energy is able to offer a unique fueling proposition to
its customers and partners that supports industry's transition to zero
emission off-grid power.

 

The acquired Octopus Assets are able to accept hydrogen sourced from third
party electrolysers, both in the UK and Europe, as well as from AFC Energy's
next generation ammonia crackers, giving AFC Energy the ability to deliver,
for a fee, end-to-end hydrogen fueling solutions to its customers.

 

The Assets comprise two x 350bar 420kg NanoSun Pioneer Mobile Hydrogen
Refueling Stations, 2 x mobile trailers (to transport the Pioneer refueling
stations) and 1 x hydrogen compressor for Pioneer refilling.  At full
capacity, each NanoSun Pioneer could support the fueling needs of a fleet of
H-Power Generators at full load.

 

The Assets will be available to support Speedy Hydrogen Solutions, the
Company's new joint venture with Speedy Hire in the UK and Ireland,
underpinning AFC Energy's investment into the Assets.

 

The agreement to purchase the mobile hydrogen storage and distribution assets
of Octopus Hydrogen supports the value chain for hydrogen supply to
construction and off-grid power sites and continues to position AFC Energy as
the dominant UK supplier of hydrogen power generators to support industry's
transition to a sustainable off-grid power solution.

 

It is not AFC Energy's intention to become a capital intensive hydrogen
logistics provider, however, early investment in well priced storage and
distribution assets will support the maturing of the hydrogen power generator
market whilst affording an opportunity to derive incremental revenue through
the provision of hydrogen fuel logistics, at a reasonable scale, to customers
in the UK and Ireland.

 

Adam Bond, Chief Executive at AFC Energy, said:

"We are pleased to announce AFC Energy's first investment into the
distribution and storage of hydrogen to support and complement our UK off-grid
power business.  Complemented by our hydrogen generation capability through
ammonia cracking and methanol reforming, the logistics of distributing
hydrogen is the next stage in our ambition to commercially demonstrate the
viability of hydrogen as a displacement to diesel in off-grid power
environments."

 

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 / Tilly Abraham                    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.

 

 

 

 

 

 

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