AFC Energy upbeat on performance of H-Power Tower programme

The AIM-traded company said it had leased its H-Power Towers for more than 7,000 hours to date, mainly in the UK and European construction market.

It said the programme had seen it sign new contracts for more than 8,000 hours of H-Power Tower lease hire in 2023 alone, with a growing order book supported by an increase in customer proposals.

Initial pricing for leases was supporting a sub-two-year payback on capital costs, with significant capital cost reductions targeted for 2023.

One of the most significant developments, the board said, had been the extension of the Keltbray H-Power Tower lease agreement for six months at the M621 highways project in Leeds.

Additionally, AFC signed a new lease agreement with Taylor Woodrow, the civil engineering division of global contractor Vinci Construction, for H-Power Tower deployment in Bedfordshire alongside a National Grid site.

Additionally, AFC said it had signed a new lease agreement with Colas Rail for H-Power Tower deployment on the signalling framework contract at the Gloucester Area Life Extension Project.

The company also successfully completed the first Kier H-Power Tower deployment at the Plymouth construction camp.

“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,” said chief executive officer Adam Bond.

“We continue to see growth in our pipeline for 2023 and look forward 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.”

At 1335 GMT, shares in AFC Energy were up 0.26% at 23.32p.

Reporting by Josh White for Sharecast.com.