AFC Energy PLC (AIM:AFC, OTC:AFGYF) said Swedish energy and engineering group ABB is to take a stake in the business after a successful test of its hydrogen fuel cell technology.
A cumulative 100kW liquid-cooled fuel cell (the S+ Series) exceeded contracted targets in a test run by ABB’s E-mobility arm and verified by an independent German engineering group, IAV.
Next steps for the modular S+ Series, which is being targeted at high-power electric vehicle (EV) charging, critical backup and maritime applications, are for the power to be increased to 200kW, with ownership of the hydrogen unit and batteries moving to ABB once that has been achieved and the product certified.
As part of a revised commercial agreement, AFC will also supply units to the Swedish group at a discount while, instead of a £2mln non-refundable payment, ABB will now take shares in the UK group.
Adam Bond, AFC’s chief executive, said: "We continue to see ABB E-mobility as a key strategic partner of AFC Energy with the validation of our new S+ Series fuel cell system providing strong evidence of the close working relationship developed between our two companies in recent years.
“AFC Energy is now working with ABB colleagues across multiple verticals including maritime and data centres for critical backup power."