AFC Energy PLC (AIM:AFC, OTC:AFGYF) has potentially developed a world-leading ammonia cracking technology, according to analysts following the company.
In an independent test conducted by the UK's National Physical Laboratory (NPL), it produced an impressive 99.99% pure hydrogen.
This accomplishment not only aligns with the ISO 14687:2019 standard but also exceeds it, as the ammonia levels in the hydrogen were notably below the set maximum limits.
The standard determines the quality of hydrogen when utilised as fuel in both vehicular and stationary fuel cell applications.
The advanced technology, encompassing AFC Energy's proprietary cracker reactor and gas purification systems, holds potential for diverse commercial applications.
These range from ammonia-to-power integrations and hydrogen refuelling for combustion engine vehicles to marine applications and the conversion of liquid ammonia for gas-pipeline networks.
Peel Hunt, the investment bank, highlighted in its research note the uniqueness of AFC Energy's achievement.
Reiterating its confidence in AFC Energy's prospects, Peel Hunt maintained a 'buy' recommendation with a target price of 125p.
At 1.08 pm, the shares were changing hands for 13.83p, up 3% on the day.