AFC Energy PLC (AIM:AFC, OTC:AFGYF) has inked a new strategic supplier agreement (SSA) with Germany's Zollner Elektronik, to scale the production of fuel cell modules for its S Series platform.
The agreement represents a step-up in AFC Energy’s efforts to meet the growing demand for its hydrogen power generation technologies.
Zollner Elektronik, Europe’s largest electronics mechanical services contract manufacturer, with 24 locations worldwide, will deliver a phased build-up of fuel cell module production, including wiring, electrical panels, sub-assemblies, module assembly, and testing.
Initial production will take place at Zollner’s facilities in Zandt, Germany, with the potential for further expansion internationally.
"We are very proud to be working with Europe's leading mechatronics manufacturing partners in Zollner,” chief executive Adam Bond said in a statement.
“Our strategy of leveraging the scale-up manufacturing expertise of contract manufacturers has long been the core of our future product readiness and with such high demand for Zollner's services, we are extremely pleased to see the alignment of our two companies and the complimentary opportunities that we are able to pursue in partnership.
“We look forward to a long and fruitful partnership with Zollner as we continue to support industry to meet its decarbonisation goals."
Markus Aschenbrenner, a Zollner board member, meanwhile, commented: “We are always on the lookout for new, innovative technologies that pave the way to a more sustainable future.
“We are delighted to have entered into this multi-year Strategic Supply Agreement with AFC Energy to support the company meet the growing demand for sustainable alternatives to fossil fuel generators.
“Hydrogen is no longer a fuel of the future, but by working with partners like AFC Energy, we are pleased to be actively participating in the industry's pursuit of a net zero solution and trying to make an important contribution."