Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

AFC Energy picks up first fuel cell order from Australian partner

The order reflects the first stages of a growing pipeline of commercial fuel cell projects in Australia, said AFC
fuel cell
First order from Australia for an alkaline fuel cell system

AFC Energy plc (LON:AFC) shares rocketed higher on a first commercial order from Australia for a hydrogen power unit using its fuel cells.

Southern Oil will install the unit, expected to be between 200kW and 400kW in capacity, at its advanced biomass facility at Gladstone.

READ: AFC Energy appoints new chief financial officer

Details remain to be finalised though AFC Energy plans to sell the balance of plant for its hydrogen generation unit to Southern Oil and lease the system's stack and electrodes for an undisclosed sum.

Northern Oil, a subsidiary of Southern Oil, is building a large industrial scale pilot plant where surplus hydrogen generated from the system is to be made available for consumption within a fuel cell.

Hydrogen produced from the Gladstone refinery is expected to generate power at a lower cost than its existing grid tariff.

AFC will deliver the project in the first half of 2019. 

Adam Bond, AFC’s chief executive, said: “ The order received for the Company's fuel cell system reflects the first stages of a growing pipeline of commercial fuel cell projects in country and validates the opportunities we believe to be emerging in the Australian hydrogen market.”

Tim Ross, Southern Oil’s CEO, added: “In developing the Gladstone Advanced Biofuels Pilot Plant over the last three years, Southern Oil, has benchmarked cutting-edge renewable technologies from around the world. In my mind, AFC Energy's Alkaline Fuel Cell has great potential."

AFC and Southern Oil originally agreed to collaborate on how to integrate AFC Energy’s fuel cells into a commercial power system last year.

View full AFC profile View Profile

AFC Energy plc Timeline

Related Articles

Uskmouth power station
June 27 2018
The City broker’s analysts noted the transformation of tidal power firm Atlantis Resources into a major renewable energy development company with a pipeline of strong assets following the acquisition of SIMEC Uskmouth Power Limited
Hydrogen
July 12 2018
Work with partner De Nora has the potential to slash the cost of hydrogen power.
Honda car
February 19 2018
Are we there yet? Well, almost, if you are talking about Berenberg's price target of 15p, set when it initiated coverage of the fuel cell developer in July 2017

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use