REG - Speedy Hire PLC - Speedy Hire and AFC Energy launch joint venture

Speedy HireAnnouncement

15/11/2023 07:15

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RNS Number : 5254T  Speedy Hire PLC  15 November 2023

15 November 2023

Speedy Hire Plc

Speedy Hire and AFC Energy Launch Dedicated Hydrogen Powered Generator Plant
Hire Business - Speedy Hydrogen Solutions Limited

 

Further to the announcement of 28 July 2023,  Speedy Hire Plc (LON: SDY)
("Speedy"), the UK's leading tools and equipment hire services company, and
AFC Energy plc (AIM: AFC) ("AFC Energy"), a leading provider of hydrogen
powered generator technologies, are pleased to announce the launch of Speedy
Hydrogen Solutions Limited ("SHS") their 50:50 joint venture company, a
dedicated hydrogen powered generator plant hire business promoting
sustainable, zero emission, temporary power solutions designed specifically
for the off-grid generation market.

The launch of SHS provides a vehicle to acquire and hold AFC Energy H-Power
Generator assets for hire to Speedy on commercial terms for subsequent rehire
by Speedy to its customers. AFC and Speedy have agreed to initially jointly
fund SHS up to £2.5m each, subject to JV performance, through initial equity
subscriptions and subsequent shareholder loans. This will enable SHS to
purchase 30kw H-Power Generators from AFC Energy. The first of these systems
are expected to be available later this year, and Speedy and AFC Energy plan
to manage the purchase of the H-Power Generators in line with the expected
growing demand for zero emission power across the UK construction and
temporary power market, which has been confirmed by the strong interest in
H-Power Generators received by both Speedy and AFC Energy following the
initial announcement.

SHS will provide a full-service hire model co-ordinating the generator
equipment, maintenance, technical support and telematics monitoring, site
preparation and fuelling to Speedy and its customers. The H-Power Generators
will be available for hire in the UK and Ireland exclusively from SHS through
Speedy for an initial three-year period. SHS will also generate income from
the procurement and on-sale of hydrogen to Speedy customers, as well as
providing ancillary and engineering support to those customers not familiar
with the adoption of hydrogen fuelled generators as part of their move to a
more sustainable off-grid power solution.

SHS does not expect to hire employees nor commit to new facilities at this
time. Speedy has agreed to support SHS with marketing, logistics and
accounting support with AFC Energy providing technical, service and
maintenance and on the ground commissioning capability.

The H-Power Generators are being designed to work in harmony with Battery
Storage Units supplied from Green Power Hire, a company recently acquired by
Speedy. This hybrid power package (fuel cell and battery) highlights the
importance of joined up technology development enabling customers to achieve
both financial and environmental savings compared to alternative technologies
on the market.

Dan Evans, Chief Executive at Speedy Hire, said:

"Our JV with AFC Energy further strengthens our market leadership in combining
product innovation and sustainability solutions that are increasingly critical
and in demand from our customers. We continue to make progress in the delivery
of our ambitious plan to be a net zero business by 2040 and, together with
other recently announced developments like the acquisition of Green Power
Hire, provide strong and unique evidence of our Velocity strategy in action."

Adam Bond, Chief Executive at AFC Energy, said:

"We are pleased to announce this exciting collaboration with the UK's leading
plant hire business, Speedy Hire.  We have every confidence that the JV will
support the UK and Irish construction sector's transition away from diesel
towards its ambitious decarbonisation targets and represents a game changer in
the way sustainable off-grid power is delivered to industry. With strong
interest already evidenced from contractors and at industry events, we expect
this venture to now raise the bar in sustainable off-grid power."

For further information, please contact:

 Speedy Hire                                                                                                                               Tel: 01942 720 000
 Plc
 Dan Evans, Chief Executive
 Paul Rayner, Chief Financial Officer

 MHP                                                                                                                                       Tel: 0203 128 8540
 Oliver Hughes
 Katie Hunt

 

About Speedy Hire

Founded in 1977, Speedy is the UK's leading provider of tools and equipment
hire services to a wide range of customers in the construction,
infrastructure, industrial, and support services markets, as well as to local
trade, and retail. The Group provides complementary support services through
the provision of training, asset management and compliance services. Speedy is
certified nationally to ISO50001, ISO9001, ISO14001, ISO17020, ISO27001 and
ISO45001. The Group operates from c.180 fixed sites and selected B&Q
stores across the UK and Ireland together with a number of on-site facilities
at client locations and through a joint venture in Kazakhstan.

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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