AFC Energy jumps as fuel cell commercialisation 'now in sight'

AFC Energy’s shares jumped on Thursday as the company reported that the design of its first commercial fuel cell system is nearing completion.

The final product will have a low cost per kWh (kilowatt hour) compared to alternative generating systems because of its ability to use lower quality and less expensive hydrogen sources, according to AFC.

Adam Bond, chief executive of AFC, said: "It's been a busy but successful twelve months both in terms of AFC Energy's preparedness for commercial deployment, and in its drive towards clear platforms for deployment in the massive off grid power market."

With an order in place from Southern Oil in Australia and growing interest in fuel cell systems from Japan, the company is also strengthening its supply chain in the Asia-Pacific region.

Steps taken in the last six months include the release of test data indicating that partnership with electrode manufacturer Industrie De Nora will lead to significantly lower build costs without compromising quality.

Meanwhile, the selection of a manufacturing partner for the production of the fuel cell flow plates is at an advanced stage and negotiations are underway to create the first containerised Alkaline Fuel Cell system to create the first scalable "plug and play" commercial unit with up to 200 kW of power.

"Our aspiration to become a leading supplier of hydrogen-based solutions across the value chain is now within sight and we look forward to consolidating and growing our existing pipeline of projects both in the UK, Australia and internationally," said Bond.

AFC Energy’s shares were up 12.07% at 6.50p at 1107 GMT.