AFC Energy plc (LON:AFC) told investors it is advancing a landmark fuel-cell project in Surrey, signing a deal with Dunsfold Park Ltd.
The company has signed a term-sheet for a front end engineering and design (FEED) for the project, which will be a micro-grid utilising hydrocarbon fuel cells capable of powering 2,500 homes.
The project is the first of its kind in the world, and it is part of the Dunsfold Estate Masterplan residential and industrial redevelopment. AFC’s head office is based in Dunsfold Park.
READ: AFC Energy boss Adam Bond “extremely pleased” as fuel cell commercialisation nears
WATCH: Adam Bond outlines the deal and future opportunities to Proactive's Andrew Scott
It is expected that the micro-grid will be delivered in multiple phases, starting in the second half of next year and the second tranche of installed power capacity by the end of the third quarter of 2019.
Work on the FEED will begin in August.
“As long-term tenants of Dunsfold Park, we are delighted to now be collaborating in the commercial deployment of AFC Energy's fuel cell technology,” said Adam Bond, AFC Energy chief executive.
“The introduction of hydrogen derived from renewable sources is a particular highlight of the proposed scheme and re-emphases the potential innovation in sourcing long term, sustainable hydrogen for our fuel cell projects.
“This scheme offers the potential for national and international replicability and could become a benchmark in localised hydrogen micro-grids. We look forward to working closely with Dunsfold Park in delivering this important clean energy initiative for the region."
Jim McAllister, Dunsfold Park chief executive, added: “We are delighted to be collaborating with AFC Energy, a long-time tenant of Dunsfold Park on this nationally significant hydrogen fuel cell project.
“We look forward to seeing the results of the FEED study and endorse the initiative's full alignment with Dunsfold Park's clean energy strategy which has permeated all of our redevelopment activities over the past few years.
“Initiatives such as this collaboration with AFC Energy further highlight Dunsfold, the Borough of Waverley and the County of Surrey's prominence at the forefront of renewable energy technologies."
The hydrogen for the micro-grid will be sourced locally, from bio-methane.