AFC Energy PLC (AIM:AFC, OTC:AFGYF) said its focus on commercial delivery and cost reduction had positioned the business for a stronger 2026, following a year of restructuring and development.
The AIM-listed clean power company reported unaudited cash of £25.3 million at 31 October, up from £15.4 million a year earlier.
Revenue for the year fell to £107,000 from £4 million, reflecting a deliberate “strategic reset” announced in March to speed up the path to commercial viability.
Chief executive John Wilson, who joined the company 10 months ago, said 2026 would mark “the beginning of sustained revenue growth for our business, without the need for government subsidies”.
The group’s restructuring, funded by a heavily oversubscribed placing in July, included a headcount reduction of 17, the closure of its Stade facility in Germany, and the creation of new commercial and project management functions.
These changes are expected to save about £1.5 million annually from 2026.
Commercial progress was driven by AFC’s joint venture with Speedy Hire, Speedy Hydrogen Solutions, which deployed several of the company’s 30kW fuel cell generators. A revised pricing model offering future cost equivalence has encouraged customer uptake.
Development of the Hy5 hydrogen 'cracker' system, designed to produce low-cost hydrogen on site, remains on schedule and within budget.
The company expects to achieve a £10 per kilogram production cost by late 2026, significantly below current UK market levels of £40 to £110 per kilogram.
The first Hy5 unit will be installed at Industrial Chemicals Group’s Port Clarence site, where AFC plans to produce hydrogen for commercial use in the first half of next year, subject to permitting.
AFC also completed the first phase of its joint development project with a large S&P 500 partner, with further work under discussion.
Meanwhile, its next-generation S+30 30kW liquid-cooled fuel cell is on track for 2026 delivery, supported by manufacturing partner Volex. The new model is expected to be 85% cheaper to produce and 50% smaller than the current design.
Wilson said the business was now positioned to “disrupt our industry through utilising its proprietary technology, to create significant shareholder value”.
The company said global momentum for hydrogen power was building, driven by rising electricity demand from artificial intelligence data centres.
Major operators have begun adopting fuel cells for primary and backup power, a trend AFC believes could open a substantial market for its generators and ammonia cracking systems.