AFC Energy PLC (AIM:AFC, OTC:AFGYF) has said it will repurpose its facility in Stade in northern Germany as part of a renewed collaboration with hydrogen giant Air Products.
The collaboration includes a five-year hydrogen offtake agreement at the site, which is near Hamburg.
The site will now provide factory acceptance testing (FAT) of AFC Energy’s H-Power Generator series of fuel cell systems.
Repurposing the site, which was constructed in 2015 and paid for with funding from the European Union’s Power-Up programme, will require “nominal investment”, the company said, as it already contains existing hydrogen supply infrastructure and grid connection.
“The repurposing of our Stade facility creates a solid footprint within Germany and the wider EU hydrogen market whilst providing a cost effective path for our H-Power Generator factory acceptance testing programme,” said AFC chief executive Adam Bond in a statement.
“The market for zero emission off-grid power generation continues to grow internationally with our Stade facility now set to become a further catalyst in the delivery of H-Power Generators within one of the world's fastest growing hydrogen markets," he added.
AFC pointed out that with Germany playing a lead role as the European Union invests heavily in its hydrogen sector, there are “materially lower” local costs for commercial and industrial hydrogen use.
It expects positioning its FAT facility in Germany will be strategically sound and provide substantial savings over the life of the Air Products hydrogen supply agreement.
AFC said it is commissioning a study into the potential co-location of development and large-scale contract manufacturing facilities in Germany to support growing deployments, which would be expected to make the most of the strong local fuel cell supply chain, automotive and manufacturing facilities.