Alkaline Fuel Cell Power Corp. (NEO:PWWR.AQN) (AFCP) has said its focus for the second half of 2022 and beyond will be on diversification and strength.
In an update, the company said it will work on enhancing a stable revenue stream and focus on a future-forward vision to commercialize its advanced hydrogen fuel cell technology to meet the massive needs of the global market.
"In addition to ongoing success in the development of our alkaline fuel cell technology, AFCP is prudently diversifying into assets offering more immediate revenue potential to support its eventual transition to sales of alkaline fuel cells," the company's CEO Frank Carnevale said in a statement.
"I'm pleased to announce that AFCP is advancing its acquisitions, investments and scaling of our energy asset business activities over the second half of 2022," he added.
READ: Alkaline Fuel Cell Power unveils PWWR Flow Brand for combined heat and power (CHP) division
Among corporate initiatives, the company said it will enhance financial flexibility by exploring opportunities to leverage the use of flow-through shares to minimize its equity requirements for ongoing development and advancement. Further, the company is looking to identify, nurture and execute strategic acquisitions of additional attractive energy assets and earnings-positive service companies in the power and energy space.
The firm is also looking to source and secure working capital for acquisitions and growth capital.
The company plans to expand its asset installation base leveraging on ongoing revenue and earnings generated through PWWR Flow, a brand of its combined heat and power division, as it continues to develop the $50 million worth of PWWR Flow projects in its pipeline over the next two years.
AFCP said it wants to achieve the next critical milestone on the path to achieving a fully functioning 4kW fuel cell system within a laboratory configuration.
It also wants to accelerate and ramp up efforts to bring fuel cells to market globally, develop and implement strategies to establish large-scale and cost-effective fuel cell manufacturing capabilities and secure additional strategic partnerships for the piloting and deployment of fuel cells in North America.
The company cited studies indicating that North America's combined heat and power industry is projected to reach over US$800 million, propelled by favorable regulatory policies, rising demand for captive power generation and growing consumer inclination toward sustainable energy. Globally, the CHP market is expected to grow from an estimated $26.6 billion in 2021 to $35.2 billion by 2026, at a compound annual growth rate of 5.8%.
Some of the company’s highlights in the first half of 2022 include:
- Acquired AI Renewable's combined heat and power (CHP) business, originally announced on March 4 and closed on April 22, gaining a pipeline of potential projects including an estimated $50 million of additional CHP systems that can be brought into commercial operation over the next 24-36 months, which has the potential to generate gross revenue up to approximately $16.6 million, potential EBITDA up to approximately $7.7 million and potential net income up to approximately $1.6 million
- Listed the company's shares on the OTCQB March 28, 2022, under the ticker ALKFF
- Appointed new CEO, Frank Carnevale, effective May 10, to drive global growth in energy transformation;
- Achieved the first key milestone in the development of our hydrogen fuel cell, announced on May 19, 2022, with the successful creation of a functioning, bench test, single stack and system operation at working temperature, which supports AFCP's drive towards commercializing a 4kW Micro-CHP system;
- Rebranded AI Renewable's CHP business to PWWR Flow Streams and unveiled a complementary new corporate tag line, "PWWR to the People" on June 8 in keeping with the notion of providing power directly to customers on their sites,
- Appointed Carmine Marcello as Advisor on June 16, bringing expertise as the former president and CEO of Hydro One Inc., one of Canada's largest electric transmission and distribution utilities with a market cap of over $20 billion and over $23 billion in assets.
AFCP is a diversified investment platform developing affordable, renewable, and reliable energy assets and cleantech.
Contact the author at jon.hopkins@proactiveinvestors.com