AFC Energy PLC (AIM:AFC, OTC:AFGYF, ETR:QC8) struck a collaboration with constructing and engineering contractor, Keltbray, for it to lease AFC’s fuel cell system.
It will be deployed at one of Keltbray’s construction sites, likely in London in the second quarter, with a roadmap outlined for further deployments later in the year.
The stockbroker Peel Hunt reiterated its ‘buy’ recommendation for AFC and gave it a 195p price target – a 500% upside on its Monday afternoon price of 38.7p.
The two companies have been working together for five months reviewing the capabilities of the fuel cell systems and their fuel-flex capabilities across hydrogen, methanol and ammonia.
Keltbray has emissions-reduction and cost-reduction incentives for working with AFC, after setting a net-zero by 2040 goal in September, as well as vowing to help its own clients to meet their targets.
The withdrawal of Keltbray’s Red Diesel subsidy from April 2022 coupled with soaring energy prices makes fuel cell technologies even more attractive.
AFC's share price rose 5.6% on the news.