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EPIC: AFC
Market: AIM
52-week High/Low: 29.00p / 7.75p
Sector: Cleantech and Renewable Energy
Market Cap: 49.36M
Phone: +44 (0)1483 276 726
Address: Unit 71.4 Dunsfold Park, Stovolds Hill, Cranleigh, Surrey GU6 8TB.
Website: www.afcenergy.com
AFC Energy plc

AFC Energy plc

AFC Energy is edging increasingly closer to delivery of a commercial-scale fuel cell system capable of deployment across a range of markets. We will continue to push hard to achieve these ambitious goals and ensure that the system we take to market achieves not only short-term operational success, but also longevity, safety and stability of power supply across the life of the project.

 

AFC Energy plc

www.afcenergy.com

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Big picture - Why invest in AFC Energy plc


AFC Energy plc Snapshot

Our business model

Our business model is to install, own, operate and maintain alkaline fuel cell power projects.

AFC Energy seeks to be a fuel cell power provider and will target joint ventures, in which AFC Energy aligns its interests with those of its partners, by having “skin in the game”.

AFC Energy expects to achieve its target of 1GW of capacity installed or under development by 2020.

Our Projects

AFC Energy’s objectives are to secure value added partnerships with recognised industrial and institutional groups as well as commencing scoping studies and securing contracts for fuel cell projects.

With the POWER-UP programme, we now have a pilot plant system operating in Germany at an industrial plant owned by Air Products, which in turn accepts hydrogen from Dow Chemicals.

AFC has also signed MoUs in three of its key regions, including the Middle East (Dubai), South-East Asia (Thailand) and northeast Asia (South Korea).

EU-Funded Projects

POWER-UP is one of the EU Fuel Cell and Hydrogen Joint Undertaking’s stationary fuel cell demonstration projects.

The project has a budget of €11.5 million and a scheduled duration of 51 months, starting in April 2013 and concluding in June 2017.

Key highlights achieved for the project:

Delivery of an AFC system that converts hydrogen into electricity, water and heat

Successful scaled-up manufacture of fuel cell components

Demonstration of an automated process that assembles components into fuel cell stacks ready for incorporation within the system

Reduced installation and commissioning times (and costs) of the system through the development of a modular, containerised Balance of Plant

Effective recycling of substrate plates, catalyst materials and stack components

Understanding and quantifying the direct and indirect environmental burdens of the fuel cell system (including its hydrogen supply and component recycling) and the relevant socio-economic factors

Meeting end-user reliability requirements and compatibility with end-user’s plant maintenance schedules

Power successfully dispatched and sold to the grid

POWER-UP Consortium

To achieve the objectives of project POWER-UP, AFC Energy has put together an international consortium of world-class expertise:

AFC Energy plc (UK) – Project Co-ordinator

Air Products plc (UK) – World’s leading supplier of hydrogen and site host

GB Innomech (UK) – Automation specialists

Paul Scherrer Institut (Switzerland) – Independent technical, environmental and economic evaluation

ZBT Centre for fuel cell technology (Germany) – CE marking and regulatory compliance

European Hydrogen Association (EU) – publicity and dissemination of results

Automation

Throughout the duration of project POWER-UP, tens of thousands of fuel cells will need to be assembled. UK automation specialist, GB Innomech, has used a combination of established automation processes to develop and commission a pilot automation system.

Socio-Economic Assessment

As part of the project, technical, environmental and economic assessments of the POWER-UP system will be conducted by the Paul Scherrer Institut of Switzerland. This will be an objective study based on a broad range of indicators at the multi-disciplinary level of sustainability.

Regulatory Compliance and CE Certification

ZBT GmbH has joined the consortium to ensure that the POWER-UP system complies with all relevant national and European regulations and will ensure that the system is CE-compliant by the end of the project.

POWER-UP received generous funding from the European Union’s Seventh Framework Programme (FP7) managed by the Fuel Cells and Hydrogen Joint Technology Initiative under grant agreement No. 325356.

ALKAMMONIA
AFC Energy's proprietary AFC system is arguably the most cost effective fuel cell system available.

Project ALKAMMONIA will integrate three innovative and proven technologies: a highly efficient and low-cost alkaline fuel cell system, a highly efficient fuel processing system and a novel ammonia fuel system. The integrated system will be rigorously tested and the results shared with leading telecommunication end-users.

In order to meet the ever increasing demand for improved signal coverage and bandwidth for mobile telecommunications in remote parts of the world, project ALKAMMONIA will develop a commercially viable and reliably operating proof-of-concept alkaline fuel cell system as a real alternative to conventional, diesel-powered generators. These diesel generators pose several problems: greenhouse gas and pollutant emissions, high operating and maintenance costs, regular fuel and generator theft and noise. The shortcomings of generators can be overcome if they are replaced by highly efficient and low-cost alkaline fuel cells in combination with a novel, practically emission free ammonia fuel system.

The idea of using ammonia (chemical formula NH3) as a fuel is well known. The most significant advantage of using ammonia as a fuel is that local CO2 emissions are completely avoided. Ammonia is one of the most widely produced chemicals in the world, used for many processes and applications. Due to its many uses, ammonia is readily available in nearly all parts of the world.

Ammonia can be split into its constituents, nitrogen and hydrogen. This gas mixture can efficiently be converted into electricity using a fuel cell. In contrast to fossil fuels, which need a complex reforming process in order to produce a hydrogen rich gas, the splitting of ammonia – usually termed ‘cracking’ – is a very simple and efficient process. Ammonia has a very high energy density even at low pressures when compared to hydrogen. This makes it economic to transport and a very attractive energy carrier in the growing hydrogen economy.

Alkaline fuel cells (AFC) are ideally suited to run on ammonia since, in contrast to acidic fuel cells such as PEM, the alkaline nature of NH3 does not harm the AFC. AFCs can operate directly using cracked ammonia, avoiding the need for an expensive hydrogen ‘cleanup step’. This increases system efficiency and decreases capital and operational costs. With efficiencies of over 60% at full load conditions, AFC Energy’s proprietary AFC system will be a cost effective fuel cell system.

Project ALKAMMONIA received generous funding from the European Union’s Seventh Framework Programme (FP7), managed by the Fuel Cells and Hydrogen Joint Undertaking under grant agreement No. 325343.

Front-side view

Commercial Opportunities

Middle East

Dubai Carbon Centre of Excellence (“Dubai Carbon”)
AFC Energy signed a Memorandum of Understanding (MoU) with Dubai Carbon Centre of Excellence (“Dubai Carbon”) at the 2015 Water, Energy, Technology and Environment Exhibition (WETEX) in Dubai. The MoU provides a framework for the assessment and potential deployment of an estimated 300MW of fuel cell generation capacity in Dubai.

This landmark deal reaffirms AFC Energy’s transition to a global energy company working in collaboration with some of Dubai’s leading companies. Dubai Carbon and AFC Energy will initially assess the potential for deployment of the fuel cell within projects such as Dubai Expo 2020, The World Development by Nakheel, and major infrastructure projects including the Al Maktoum International Airport.

Dutco Group of Companies (“Dutco”)
AFC Energy has also signed a Heads of Agreement with DNR Industries Ltd., part of the leading Dubai-based investment and project developer, Dutco Group of Companies (“Dutco”) to jointly fund and develop a business plan for the large-scale deployment of AFC Energy’s fuel cells across the Middle East.

A joint venture between AFC Energy and Dutco is expected to cover the deployment of AFC Energy’s fuel cells across the United Arab Emirates, Kingdom of Bahrain, Kingdom of Saudi Arabia, Sultanate of Oman, Qatar and Kuwait. Based on initial estimates from market soundings already undertaken in the region individually and collectively by AFC Energy and Dutco over recent months, this could present an opportunity on its own to deliver a large percentage of, if not in excess of, AFC Energy’s stated target for 1GW of fuel cell development by the end of 2020.

South Korea - Samyoung and Chang

AFC Energy has signed a Project Development Agreement Milestone 50MW Deal with Samyoung and Chang Shin in South Korea for the deployment of an initial 50MW of fuel cell generation capacity in Daesan, Korea.

South Korea’s strong incentives in the deployment of fuel cell technologies haves brought significant investment and employment opportunities to the Daesan region, which AFC Energy is proud to support.

Thailand

Bangkok Industrial Gas Co. Ltd (“BIG”)

AFC Energy has executed its first Heads of Agreement (HoA) in Thailand to initiate a programme of commercial fuel cell deployment with a leading Thai industrial gas company, Bangkok Industrial Gas Co. Ltd (“BIG”).

HoA establishes a framework for the assessment and deployment of an initial 10MW of fuel cell capacity utilising surplus hydrogen from BIG-owned hydrogen pipelines and related facilities in the Rayong Province of Thailand.

 

 

 

Tim Yeo

Non-Executive Chairman
Tim Yeo was appointed Chairman of AFC Energy in 2007. He is a non-executive director of Groupe Eurotunnel SE, Chair of the University of Sheffield Energy 2050 Industrial Advisory Board and Chair of New Nuclear Watch Europe. He was formerly Member of Parliament for South Suffolk and Chairman of the House of Commons Energy and Climate Change Select Committee.

 

Adam Bond

Chief Executive Officer
Adam has over 17 years’ experience operating within the international energy sector both in executive management positions for listed energy companies, and in advisory capacities to Governments and the private sector.

 

Mitchell Field

Non-Executive Director
Mitchell is the owner of Richards and Appleby Ltd, which is engaged in the manufacture, sales and distribution of branded toiletries and cosmetics. Among these is Leighton Denny, and several other well-known heritage brands, including “Cyclax” which formerly held the Royal Warrant from Her Majesty the Queen. His principal role is sales and marketing, dealing with blue-chip companies in the UK and exporting to over 60 companies internationally. Mitchell has other investments and manages interests in fashion, property, import/export and general trading.

 

Eugene Tenenbaum

Non-Executive Director
Eugene served as head of corporate finance for OAO Sibneft in Moscow from 1998 through 2001. In 1994, he joined Salomon Brothers where he worked until 1998. Prior to that, he spent five years in corporate finance with KPMG in Toronto, Moscow and London. He was an auditor at PriceWaterhouse in Toronto from 1987 until 1989. Eugene is a chartered accountant and holds a Bachelors degree in commerce and finance from the University of Toronto. He has numerous other directorships; notably, he is a member of the boards of Chelsea FC plc, Evraz plc (a FTSE 250-listed company) and Highland Gold Mining Ltd (an AIM-quoted company).

 

Eugene Shvidler

Non-Executive Director
Eugene worked at Russian oil major OAO Sibneft from 1996 through 2005, initially as senior vice president and, from 1998, as president of the company. Eugene is a graduate of the I. M. Gubkin Moscow Institute of Oil and Gas with a Masters in Applied Mathematics and he received an MBA and Masters in International Taxation from Fordham University in New York. He is currently non-executive Chairman of Highland Gold Mining Ltd, an AIM-quoted company, and is a member of the Board of Evraz plc, a FTSE 250-listed company.

The following table shows those shareholders who have a holding of 3% or more of the Company’s issued share capital

AFC Energy plc

Unit 71.4 Dunsfold Park

Stovolds Hill

Cranleigh

Surrey

GU6 8TB

United Kingdom

Tel : 01483 276726

 

Registered Office

AFC Energy plc
Finsgate
5-7 Cranwood Street
London
EC1V 9EE

Company Secretary

Christopher Tawney
01483 276726

Joint Broker

Mc Peat & Co
118 Piccadilly
London
W1 7NW

020 7104 2334

Nominated Advisor and Joint Broker

Cantor Fitzgerald Europe

1 Churchill Pl
London
E14 5RD

Solicitors to the Company

Eversheds LLP
1 Wood Street
London
EC2V 7WS
0845 497 9797

Auditors and Reporting Accountants

Grant Thornton
Grant Thornton House
Melton Street, Euston Square
London NW1 2EP

+44 (0)20 7383 5100

Financial Public Relations Consultants

Lionsgate Communications
118 Piccadilly
London
W1 7NW

020 3697 1209

Registrars

Computershare Limited
PO Box 1075
The Pavilions
Bridgwater Road
Bristol
BS99 7NH
020 8676 2600

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