REG - AFC Energy Plc - World First Ammonia Cracking Pilot

AFC EnergyAnnouncement

04/12/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231204:nRSD4832Va&default-theme=true

RNS Number : 4832V  AFC Energy Plc  04 December 2023

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO
CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER ARTICLE 7 OF THE EU
REGULATION 596/2014 AS IT FORMS PART OF THE UK LAW BY VIRTUE OF THE EUROPEAN
UNION (WITHDRAWAL) ACT 2018 ("MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT
VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN
THE PUBLIC DOMAIN.

 

 

4 December 2023

 

 

AFC Energy PLC

("AFC Energy" or the "Company")

 

 

Ammonia Cracking Pilot Supports Unlocking of Global Hydrogen Trade

 

First Ever "International- UK" Ammonia Fuel Value Chain Demonstration

 

 

AFC Energy plc (AIM: AFC) ("AFC Energy"), a leading provider of hydrogen power
and generation technologies, is pleased to announce the unveiling of its world
first modular ammonia cracker system demonstrating the production of hydrogen
in the UK from ammonia procured from OCI Global ((Euronext: OCI).
 

 

Highlights

 

·      AFC Energy commences largest "ammonia to hydrogen" modular
cracker demonstration in operation worldwide.

 

·      Cracker system designed to deliver 140 tonnes of fuel cell grade
(ISO) hydrogen per annum (400kg/day).

 

·      Hydrogen from the cracker plant targeted for sale into AFC
Energy's UK H-Power Generator deployments.

 

·      Tangible demonstration of ammonia's role in supporting global
hydrogen trade with ammonia supplied by OCI via its Rotterdam terminal, where
it imports from its facilities in the US and MENA.

 

·      Letter of Intent now signed with trading arm of large European
energy company to market cracker adoption.

 

·      Successful demonstration of pilot plant highlights the
significant unrealised value in AFC Energy's ammonia cracker technology.

 

 

AFC Energy is pleased to announce the commencement of its first "ammonia to
hydrogen" cracker demonstration plant.  Located in the UK using ammonia
sourced from OCI Global, this will be world's largest ammonia to hydrogen
modular cracker demonstration in operation.

 

The Hydrogen Council, in collaboration with McKinsey and Company, forecasts
that 400 out of the 660 million tons of hydrogen needed for carbon neutrality
by 2050 will be transported over long distances, with the global trade of
hydrogen derivatives, including ammonia (comprising hydrogen and nitrogen)
accounting for approximately 45%.

 

The well-established supply chain for ammonia enables a lower barrier to its
adoption globally as a hydrogen carrier fuel.  However, the lack of
commercially available ammonia cracking technologies highlights an important
challenge in the ammonia value chain.

 

Designed to produce fuel cell grade hydrogen at a rate of 400kg/day, AFC
Energy's cracker system consumes a small fraction of the power consumed by
electrolysers, highlighting an ideal distributed hydrogen source potential,
whether for use in stationary (including motive refueling) or maritime
applications.

 

The cracker demonstration plant has been designed, built and commissioned by
AFC Energy over the course of 2023 leading to the successful first production
of cracked hydrogen this week.  The demonstration plant, including
purification technology, will now be operated and validated over several
months with targeted ISO grade (99.97%) hydrogen production.

 

Hydrogen produced by AFC Energy from the plant could be supplied to customers
of the Company's H-Power Generators (including Speedy Hydrogen Solutions) and
third party customers.

 

The Company's newest cracker technology advancements (launched in March 2023)
whose purity was validated by the UK's National Physical Laboratory earlier
this year, are expected to be retrofitted into the demonstration plant in 2024
(replacing the existing cracker technology), further improving cost and
efficiency performance, and adding to its market leading characteristics which
have to date been demonstrated at lab scale.

 

The ammonia used was supplied by OCI Global, a leading producer of hydrogen
based products, including ammonia and methanol with ammonia production
facilities in the Middle East, Africa, US and Europe. The ammonia sold to AFC
Energy to be cracked into hydrogen for use in fuel cell applications, was
delivered via OCI's Port of Rotterdam terminal, where it imports its ammonia
from the US and MENA.

 

Engineering will start in 2024 to containerise the ammonia cracker platform,
including purification technology, to enable mobile, distributed hydrogen
production at the point of consumption with an initial focus on European and
Asian markets. The containerised cracker platform then becomes a standalone
product capable of being sold to hydrogen consumers, positioning AFC Energy at
the forefront of this emerging global market.

 

The Company also expects to commence cracking green ammonia for the next stage
of the project.

 

AFC Energy has signed its first Letter of Intent with the trading arm of one
of Europe's largest energy companies to market the potential for ammonia as a
hydrogen carrier fuel to its customers.  AFC Energy is currently in dialogue
with multiple European project partners, demonstrating the high growth
potential of the Company's modular, scalable cracker technology.

 

The Company believes the emergence of its ammonia cracking technology,
alongside its existing fuel cell technology, has the potential to deliver
material value.  The Company is exploring options to ensure the material
value potential is properly recognized to the benefit of shareholders through
industry partnerships and other strategic avenues.

 

Adam Bond, Chief Executive, AFC Energy, said:

"With an ammonia cracker offering market leading efficiency, low power
consumption and the production of fuel cell grade hydrogen, AFC Energy's first
pilot project is a major step forward in unlocking the barriers of hydrogen
logistics and transport. The cracker system, in containerised form, will be
capable of replication across Europe and Asia with our ability to generate low
cost, decarbonised hydrogen from internationally traded green and blue ammonia
being a key step forward in the evolution of the global hydrogen market."

 

 

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.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDEAPADEFSDFFA