REG - AFC Energy Plc - Selection for ZeroCoaster Bulk Cargo Ship Design

AFC EnergyAnnouncement

01/12/2021 07:00

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RNS Number : 1166U  AFC Energy Plc  01 December 2021

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01 December 2021

AFC Energy PLC

("AFC Energy" or the "Company")

 

AEM "S" Series Hydrogen Fuel Cell and Ammonia Cracker Selected for Norwegian
ZeroCoaster's Bulk Cargo Ship Design

ZeroCoaster Consortium, Led by Vard and including ABB, Trosvik Maritime,
SINTEF Ocean and HK Shipping Achieves AiP Milestone from DNV for Ammonia Fuel
Cell Propelled Cargo Ship Design

 

AFC Energy (AIM: AFC), a leading provider of hydrogen power generation
technologies, is pleased to announce a milestone achievement set to unlock
adoption of Ammonia and high energy dense alkaline fuel cell technology in the
multi-billion-dollar effort to decarbonise the global maritime industry.

Highlights

 •    The ZeroCoaster programme is sponsored by the Norwegian Government and led by
      global shipping design and build partner Vard Engineering Brevik AS ("VARD").
 •    Objective is to design next generation coastal cargo ships to accelerate the
      transition to zero-emission shipping solutions.
 •    To meet 2030 decarbonisation targets for the shipping industry, Norway alone
      is expected to require 1,100 zero or low emission ships, including 450 bulk
      carrier cargo ships of the type envisaged by ZeroCoaster.
 •    AFC Energy began work with VARD, ABB and ZeroCoaster partners in June 2021 to
      design and engineer a modularised bulk carrier cargo ship propulsion system
      fuelled with green ammonia.
 •    The technology chosen for the ship's 1.2MW power requirement was AFC Energy's
      new "S" Series heavy duty marinised platform which is expected to host 2 x
      600kW of alkaline fuel cell systems plus ammonia cracking technology within
      modular 40ft containers.
 •    International certification agency, DNV, has now awarded "Approval in
      Principle" (or "AiP") status for the ZeroCoaster ammonia fuelled cargo ship,
      confirming an independent assessment that the ship's design is feasible and
      there are no obstacles to the design being commercially realised.
 •    VARD will now commence commercial discussions with prospective customers for
      the purchase of new ammonia fuelled ships, featuring AFC Energy's marinised
      fuel cell and cracker module.

 

 

The ZeroCoaster programme, coordinated by VARD, a major global ship design and
ship build company, aims to evaluate and present zero emission ship design
solutions using alternative maritime fuelling systems, including Green
Ammonia.

 

The Norwegian focussed ZeroCoaster coastal bulk cargo programme further seeks
to highlight novel zero emission solutions capable of scaling and
reconfiguring existing and new maritime applications.

 

The programme, funded by the Research Council of Norway, is being conducted
using an already developed concept design for the ZeroCoaster cargo ship
prepared by VARD, but in this case, is looking to develop design and
engineering philosophies that will enable the storage, handling and cracking
of Green Ammonia fuel to generate hydrogen which is then utilised within a
zero-emission alkaline fuel cell system supplied by AFC Energy for propulsion
and auxiliary power.

 

Norway has set targets to reduce emissions with 50% reductions by 2030, with a
growing national demand for zero emission vessels along the Norwegian coast.
With this focus, up to 1,100 zero emission (or low emission) ships will be
required in Norway alone, with up to 450 bulk cargo ships required reflecting
the ZeroCoaster concept design.

 

AFC Energy has been working with VARD, ABB and ZeroCoaster partners since June
2021 with the emphasis on integrating a modular, containerised Ammonia cracker
design from AFC Energy, alongside the Company's proprietary high energy dense
"S" Series fuel cell technology to create a fully marinised power generator
fuelled by zero carbon Green Ammonia.  The design is capable of both retrofit
and new build craft.

 

Green Ammonia has been highlighted as a key fuel to support the
decarbonisation of the global maritime industry with estimates suggesting the
fuel could be used to decarbonise up to 25-30% of maritime fleets.  As an
alkaline fuel, adoption of AFC Energy marinised alkaline fuel cell and cracker
modules aim to enable a highly efficient, low-cost power solution to displace
incumbent bunker fuel.

 

By using simulation-driven-ship design, VARD has developed economic and
technical key performance indicators for the adoption of Green Ammonia and
fuel cell technologies on ships.

 

DNV, one of the world's leading classification and certification bodies in the
maritime industry, and partner to the ZeroCoaster programme, has now evaluated
the design and integration of the alkaline fuel cell module with in-built
cracker and concluded that the design complies with all relevant maritime
rules, regulations and standards.

 

Better known as "Approval in Principle" ("AiP"), DNV's positive assessment of
the ZeroCoaster design marks another key milestone in unlocking the vast
potential of Green Ammonia as a zero-emission fuel within the maritime
industry, alongside deployment of AFC Energy's marinised, high energy dense
fuel cell platform and cracker module.  The AiP confirms the design is
feasible and that there are no obstacles that could prevent the solution from
being realised.

 

Andreas Buskop, General Manager, Engineering at Vard Engineering Brevik AS,
said: "VARD has long shown leadership in maritime design and innovation with a
focus of accelerating the transition to zero emission.  We strongly believe
in the role Green Ammonia will play in supporting industry's aspirations to
"go green", and working alongside industry leaders in alkaline fuel cell
technology, AFC Energy, we are pleased to have gained confirmation of our AiP
from DNV, highlighting what we understand to be a world first in ship design
for ammonia fuel cell and cracker utilisation.  We now look forward to
further working with AFC Energy in taking this design to commercial fruition".

Adam Bond, Chief Executive Officer at AFC Energy, said: "The maritime
industry's increasing reliance on Green Ammonia as a decarbonisation fuel
lends itself perfectly to AFC Energy's high energy dense alkaline fuel cell
technology.  Having worked in design concepts for the past six months on the
marinisation of our integrated, heavy duty fuel cell and cracker technologies,
we are pleased to have been invited to partner with world leading ship
designers and builders such as VARD to highlight the potential for the safe
and compliant propulsion and auxiliary powering of cargo ships as part of the
ZeroCoaster project. Receipt of AiP from DNV is simply a confirmation and
validation of the role our technology will play in supporting mariners to
achieve stringent greenhouse reduction targets".

 

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

 Sara Powell / Ben Brewerton                                            afcenergy@fticonsulting.com (mailto:afcenergy@fticonsulting.com)

 

 

 

About AFC Energy

AFC Energy plc is commercialising scalable alkaline 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 Vard Engineering

VARD boasts more than 8,000 employees worldwide, and operate shipbuilding
facilities in its home country of Norway, as well as in Romania, Brazil, and
Vietnam. VARD is majority owned by Fincantieri Oil & Gas S.p.A., a wholly
owned subsidiary of FINCANTIERI S.p.A., one of the world's largest
shipbuilding groups that over its 200 years history has delivered more than
7,000 vessels.

As well as providing high-end design and engineering services to the global
maritime industry, through our specialized VARD subsidiaries the Group create
and develop an outstanding range of advanced power and automation systems,
deck handling equipment, and vessel accommodation solutions.  www.vard.com

 

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