AFC Energy PLC (AIM:AFC, OTC:AFGYF) has inked a joint venture deal with Industrial Chemicals Group to produce hydrogen from ammonia, aiming to offer a cheaper, more scalable alternative to conventional production in the UK.
The 50:50 partnership will use AFC Energy’s ammonia cracking technology alongside Industrial Chemicals’ procurement and logistics capabilities to deliver hydrogen without the need for government subsidies.
The venture intends to sell the gas at prices that challenge current market rates, with initial revenues expected in early 2026, subject to regulatory approval.
The hydrogen will be generated by cracking ammonia, a widely used industrial chemical that is easier and cheaper to store and transport than hydrogen itself.
The JV will start with AFC’s pilot plant and hydrogen compression system, before moving to commercial rollout via the company’s Hy-5 units, which can produce up to 500kg of hydrogen a day from ammonia.