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9 March 2023
AFC Energy PLC
("AFC Energy" or the "Company")
H-Power Tower Deployment Update
AFC Energy (AIM: AFC), a leading provider of hydrogen power generation technologies, is pleased to provide an update on its H-Power Tower deployment programme following system validations in 2022.
Highlights
· H-Power Towers leased for >7,000 hours to date into the UK and European construction market
· New contracts signed for >8,000 hours of H-Power Tower lease hire in 2023 so far
· Growing order book supported by increase in customer proposals
· Initial pricing for leases supports sub two year pay back on capital costs with significant capital cost reductions targeted for 2023
· Extension of Keltbray H-Power Tower lease agreement for six months at M621 highways project in Leeds
· New lease agreement signed with Taylor Woodrow, civil engineering division of global contractor Vinci Construction UK, for H-Power Tower deployment in Bedfordshire alongside National Grid site
· New lease agreement signed with Colas Rail for H-Power Tower deployment on the Signaling Framework contract at the Gloucester Area Life Extension Project
· Successful completion of first Kier H-Power Tower deployment at Plymouth construction camp
AFC Energy is offering a zero emissions power generation solution to the delivery of sustainable UK and European construction markets through its H-Power Tower launched last year.
The H-Power Tower deployments to date, coupled with a growing pipeline of deployments contracted for 2023, highlights the clear role hydrogen is set to play in supporting the decarbonisation of hard to abate industries such as construction.
Customer feedback has been immensely valuable in shaping future specifications of AFC Energy hydrogen power generator platforms and, alongside our early mover customers, we are working to deliver larger systems into 2023, building on the success of the H-Power Tower design.
Early H-Power Tower deployments are being delivered under commercial lease hire agreements which, at present pricing, delivers a capital pay back within two years. This model further supports early market penetration to end customers. In due course, we expect to grow system sales to traditional plant hire businesses.
AFC Energy designs and builds its own fuel cell systems for input into customer friendly packaging. This unique selling point in our market offering allows continuous technology upgrades to better align customer feedback with our system's design, highlighting a path to a lower total cost of ownership to end users.
In 2023, we are working towards a material reduction in capital cost per system, measured on a per kW basis, which, together with +50% efficiency achieved on fuel conversion in the field to date, creates a platform for a competitive total cost of ownership relative to peers.
In one of our recent field deployments, the customer, using real life data, compared fuel costs of AFC Energy's H-Power Tower to their incumbent diesel generators, and concluded AFC Energy's cost per kW of fuel used was just a 14% premium to diesel, despite the current high pricing for hydrogen. Yet, with a more competitively priced, longer term hydrogen supply agreement, fuel cost parity could be achieved today.
AFC Energy continues to work closely with its customers and partners to enhance and significantly reduce the cost of its hydrogen generator systems and looks forward to further announcements on system enhancements and new deployments throughout 2023.
Adam Bond, Chief Executive Officer at AFC Energy, said:
"It is great to see the strong market interest in AFC Energy's new hydrogen power generators and particularly the uptake in the H-Power Tower launched last year. We continue to see growth in our pipeline for 2023 and look forwards to working with new customers, both here and across Europe, to affirm hydrogen's role in supporting the decarbonisation of hard to abate sectors like construction."
For further information, please contact:
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AFC Energy plc Adam Bond (Chief Executive Officer)
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+44 (0) 14 8327 6726 |
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Peel Hunt LLP - Nominated Adviser and Joint Broker Richard Crichton / Tom Ballard / Georgia Langoulant |
+44 (0) 207 418 8900
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Zeus - Joint Broker David Foreman / James Hornigold (Investment Banking) Dominic King (Corporate Broking) / Rupert Woolfenden (Sales) |
+44 (0) 203 829 5000 |
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FTI Consulting - Financial PR Advisors Ben Brewerton / Nick Hennis / Dhruv Soni |
+44 (0) 203 727 1000 |
About AFC Energy
AFC Energy plc is deploying its hydrogen fuel cell systems to provide clean electricity for on and off grid power needs. The technology, pioneered over the past twelve years in the UK, is now deployable to support the electrification of electric vehicle chargers, off-grid decentralised power systems and data centre back up applications with emerging opportunities across maritime and rail as part of a portfolio approach to the decarbonisation of local electricity needs. The Company also offers customers a flexibility in sourcing lowest cost hydrogen through a "flexible fuel" strategy incorporating hydrogen carrier fuels such as ammonia and methanol and associated fuel conversion technologies.
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