Fuel cell specialist AFC Energy (LON:AFC) has a new partner for its €6.1 million EU-backed Power Up programme.
Air Products replaces Industrial Chemicals Limited as AFC’s industrial collaborator.
The aim of the project is to generate electricity using surplus hydrogen produced from a chemical plant using one of the world's largest alkaline fuel cell power systems.
The test bed for this was to be ICL’s Essex facility. However, the agreement with Air Products means the project will now be based in Stade, northern Germany, where Air Products operates a “world class” industrial gas processing plant.
Chief executive Ian Williamson said: “It will also provide us with access and visibility to a significant quantity of clean hydrogen in a fully commercial setting.
“With our existing long term project with AkzoNobel continuing at Bitterfeld, Germany, we will soon have two installations in one of the world's most exciting and strongly government-supported markets for fuel cell energy."
The company began work on the Power Up project in April and remains on track to install the first KORE system in Germany next year. It is expected to become operational in the second half.
AFC will initially introduce two fuel cell systems in stages with a total 500 kilowatts electrical output.
The announcement formed part of a wider update on progress in which the group revealed income for the year would be lower than expectations, but still ahead of the previous 12 months.
This, AFC said, is primarily due to the slower ramp-up of the Power Up project and the desire of the South Korean market to have data from scaled-up systems.
Tight cost control means the group has cash of £6.9mln compared with £10.9mln a year earlier.
Separately, AFC said it is bringing forward by five months the investment in an automated system to manufacture fuel cells. Currently they are made by hand.