Alkaline Fuel Cell Power Corp. (NEO:PWWR.AQN) (AFCP) has announced the execution of a letter of intent (LOI) with Progressus Clean Technologies Inc on September 12, 2022, to complete a joint venture (JV) pilot project aimed at providing a solution for natural gas utilities to directly power residential and commercial businesses.
The partners intend to use the JV as proof-of-concept for each company’s technologies and assess the ability to combine Progressus' technology with AFCP’s fuel cells to serve residential and small building customers across North America, the company said.
"Alkaline Fuel Cell Power is pleased to be working with the talented team at Progressus to combine our respective technologies and accelerate the ability for utility companies to utilize natural gas pipelines for the distribution of hydrogen for residential and commercial customers, more immediately," AFCP CEO Frank Carnevale said in a statement.
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“This JV pilot project is a key milestone in our goal of making zero emission fuel cells widely available, handing ‘power to the people’ so that individuals can both save on energy costs while positively contributing to global emission reduction targets,” he added.
The project will use Progressus’ hydrogen separation technology to efficiently extract hydrogen at high purities from the existing natural gas grid, and then convert the purified hydrogen using either AFCP’s 4 kilowatt (kW) Micro-CHP or 4 kW generator to produce electricity, and potentially heat, providing truly zero-emission power.
"The missions and combined vision of AFCP and Progressus are very complementary to one another. By leveraging the strengths of both organizations, we can more efficiently and effectively solve the growing need for innovative hydrogen solutions,” Progressus CEO Channce Fuller commented.
“The proposed JV pilot project with AFCP is an active step towards progressing hydrogen innovation and combining the suite of technologies that will ultimately be needed for global hydrogen solutions in the future,” he added.
North America possible location
To reduce carbon dioxide emissions around the world, gas distribution companies and municipalities are setting up projects to inject hydrogen into the local gas distribution grid, AFCP said, noting that gas mixture for residential and commercial buildings generally aims to contain up to 20% hydrogen.
The exact location of the project remains under consideration but North America will initially be the focus, with secondary priority given to potential future pilots in Europe, the company said.
AFCP has already identified interest from natural gas and electric utilities and municipalities to pilot the concept, it said, adding that sales of its alkaline fuel cell CHP units and generator systems could be rapidly scaled by accelerating the distribution of hydrogen through natural gas transportation networks, particularly in North America.
AFCP also reiterated its outlook for the rest of the year as announced on June 20, 2022, when it said it will further accelerate and ramp up efforts to bring its fuel cells to market, globally, while simultaneously, securing strategic partnerships for the piloting and deployment of the fuel cells in North America.
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