AFC Energy PLC (AIM:AFC, OTC:AFGYF, FRA:QC8) has completed its first build of a new hydrogen fuel cell generator that it says dramatically reduces costs and improves performance, putting the company on a clearer path toward commercial scale-up.
The 30kW LC30 Generator, the company’s first liquid-cooled model, is now undergoing operational testing and is already producing power to design specifications.
Compared with AFC’s previous air-cooled version, the new system is cheaper to make, smaller, and more efficient.
Manufacturing costs have dropped by around 85%, while the unit is 50% lighter and occupies 45% less volume. The LC30 also operates across a wider temperature range, from -20°C to +50°C, making it viable for deployment in almost any inhabited part of the world.
John Wilson, chief executive of AFC Energy, said: “Ten months ago, we set out our ambitious plan to redevelop the core architecture of our fuel cell generators to reduce cost by 66% and drive towards cost parity with diesel.
"I am delighted that we have surpassed our target and have delivered our first next generation LC30 Generator on schedule and below our original budget.”
The upgrade is a key part of AFC’s strategy to move hydrogen power closer to being a viable replacement for diesel in off-grid and remote power settings, traditionally some of the toughest markets to decarbonise.
The LC30 also includes future flexibility: it is designed to house a 100kW fuel cell using the same chassis, for customers who need more power.
AFC said the unit would now move through certification and pre-production phases, supported by its manufacturing partner Volex. The company said it is working to convert its pipeline of potential deployments into signed contracts, without relying on government subsidies.
Wilson added that AFC is now focused on rolling out the LC30 through an “enhanced channel network” to support growing global demand.