Shares in AFC Energy PLC (AIM:AFC, OTC:AFGYF, FRA:QC8) rose 4% to 12.78p after the company secured a revision to its research and development permit, allowing it to export and sell low-carbon hydrogen from its pilot ammonia-cracking plant.
AFC, a London-listed hydrogen power technology company, said the UK Environment Agency had agreed to amend the permit to allow sales to hydrogen off-takers, accelerating revenue generation from low-carbon hydrogen production by several months.
Peel Hunt said in a note that the change “accelerates revenue generation for AFC from low-carbon hydrogen production by a number of months”.
Broker added that AFC continues to work with its joint venture partner ICL to establish hydrogen production through multiple Hy-5 ammonia-cracker units, each capable of producing up to 500kg of hydrogen a day, at ICL’s facility.
Peel Hunt said the joint venture was engaging with the Environment Agency at local and central levels to create a framework for future Hy-5 deployments across the UK through accelerated permitting.
The broker said the revision “serves to validate the significant progress AFC has made in producing ISO 99.97% pure hydrogen in volume”.
Peel Hunt reiterated its 'buy' rating and 23p target price, based on a weighted average cost of capital of 15%.