AFC Energy plc (LON:AFC) has told investors it is expanding its position in the European market for fuel cells with the start of engineering work for a 1 megawatt proprietary fuel cell system at the Covestro Industrial Park Brunsbüttel.
Preliminary work has started at Brunsbüttel, at a site owned by Covestro Deutschland AG, where the AFC led project aims to deploy a fuel cell system that will be fed by hydrogen fed by Covestro's hydrogen grid.
Power generated at the site will be sold into the local power grid, under long term purchase agreements.
AFC noted that the site's proximity to the hydrogen source means there’s potential to materially expand the operation in due course.
It also highlighted that the project is “very much consistent” with its plans to partner with large energy intensive industrial partners to utilise surplus industrial grade hydrogen to generate long term, clean power and help reduce greenhouse gas emissions.
"AFC Energy is pleased to strengthen our position in the German power market at Covestro Industrial Park Brunsbüttel,” said Adam Bond, AFC Energy chief executive.
“Covestro and AFC Energy have been in dialogue for much of 2016 with regards the potential siting of an AFC Energy fuel cell system at the Brunsbüttel facility, one of the largest of Covestro's 30 industrial parks around the world, and we hope to see this relationship extend over many years and be a catalyst that will drive momentum behind fuel cell deployment not only in Germany, but also the rest of Europe."