AFC Energy able to operate on lower grade hydrogen

AFC Energy completed testing of its second generation fuel cell system, proving its ability to operate on lower grade hydrogen.

The second generation system extends the operating life of the fuel stack, while increases availability and reducing costs.

The tests proved that they were able to deliver power continuously for over one month, at high levels of availability, with two of the stacks continuing to generate power as of the day of the announcement.

The results meant the company had achieved the first and second of its eight milestones for 2016.

The testing also found that the fuel cell system is capable of accepting lower grade hydrogen relative to the laboratory standard hydrogen that has been used at the company’s testing facilities since 2006.

This provides advantages including the opening up of new lower grade hydrogen source opportunities which would increase the company’s market potential, while lowering the cost of hydrogen in commercial applications. Lower priced hydrogen will directly affect the cost of electricity generation and the economics of its system across different market segments.

Chief executive Adam Bond said: "The accelerated and diligent progress AFC Energy has made over the last nine months in delivering our Gen2 fuel cell system has been remarkable.

“The technical progression achieved materially supports our discussions with prospective commercial partners and in being able to utilise lower grade hydrogen has the potential to reduce the final cost of electricity generation from AFC's systems.”

He added that the two milestones positions the company to deliver commercial contracts and provides the traction needed with its partners for the deployment of units.

Shares in AFC Energy were up 16.89% to 21.62p at 1156 GMT.