AFC Energy plc (LON:AFC) told investors that the quarter ended December 31 was important as the company “achieved very significant improvements” for its fuel cell system.
The company said it now believes the system has demonstrated a platform for future commercial deployment, with the projected performance ahead of objectives set in 2017. Indeed, it added that successful results from early operations, through December and January, continue to validate this expectation.
READ: Hydrogen fuel cell specialist AFC Energy aims for longer life fuel cells
The fuel cell system is now at a point where the increasing amounts of operational data is building a compelling case for commercial deployment of the system, AFC said.
It highlighted that over the past twelve months talks have taken place with a number of third-party technology groups regarding near-term commercial deployment opportunities. This has included dialogue with new and innovative hydrogen generation companies, for a potential integration with AFC’s fuel cell system.
“In some cases, these negotiations have advanced to agreement of terms which are now being progressed towards binding commercial agreements,” the company explained.
“AFC Energy's management is confident that, with the progress made at the base technology level, integrated with upstream hydrogen generation and downstream power generation technologies, the market for the company's fuel cell will open into previously unexplored market segments in 2018.”
READ: AFC Energy looking to be commercially valid and viable by end of 2017
In the stock market statement, the company detailed the progress being made on fuel cell development, and specifically updated on the group’s joint venture with De Nora as well as efforts to improve the fuel cell stack design.
Summing up, the company said: “AFC Energy starts 2018 in a very strong position.
“With a technology platform well advanced, exciting new developments being made with our technology partners, new and emerging deployment opportunities in collaboration with third party technologies and innovations ready to consolidate, with £5.8 million in the bank at the end of 2017 and over £1 million in cash receipts due from EU grant-funded projects and UK R&D tax credits in the first half of 2018, I am extremely optimistic and excited about the prospects for a successful 2018.”