Shares in AFC Energy PLC (AIM:AFC, OTC:AFGYF) rose as much as 15% on Friday after it unveiled a joint venture with Industrial Chemicals Group to produce low-cost hydrogen from ammonia, offering a more scalable alternative to traditional methods.
The 50:50 partnership will use AFC’s cracking technology, which breaks ammonia down into hydrogen and nitrogen using heat and catalysts.
Ammonia is easier and cheaper to store and move than hydrogen itself, making it an efficient carrier for hydrogen supply.
The venture will start with AFC’s pilot plant and compression system, with plans to expand using Hy-5 units that can each generate up to 500kg of hydrogen per day. First revenues are expected in early 2026, subject to regulatory approvals.
The companies aim to undercut existing hydrogen prices without government support by tapping into existing ammonia infrastructure, potentially creating a new, cost-effective path for the UK’s clean energy rollout.
"This JV serves as strong validation of AFC’s proprietary cracking technology, attracting one of the UK's largest independent chemical manufacturing and distribution companies in ICL," said Peel Hunt.
The shares were up 1.18p at 16.78p.