Alkaline Fuel Cell Power Corp. (NEO:PWWR.AQN) (PWWR) said that on November 3, 2022, it executed a non-binding letter of intent (LOI) with AmmPower Corp which is developing technology to convert green ammonia into green hydrogen in a process called ammonia "cracking".
The LOI sets down the intentions of the companies to enter a joint venture to develop a pilot project testing PWWR’s off-grid fuel cell generator and AmmPower’s ammonia cracking technology.
“Given North America is years away from being able to deliver free-flowing hydrogen to customers, PWWR is doing everything we can to demonstrate more immediate alternatives designed to accelerate the sale of fuel cells to business and home owners,” Frank Carnevale, CEO of Alkaline Fuel Cell Power said in a statement.
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“This is why I am so excited to partner with AmmPower as we aim to successfully demonstrate that green ammonia is an energy carrier that can bring clean 'Power to the People’ today. The AmmPower technology is converting green ammonia back into hydrogen and when combined with PWWR’s robust alkaline fuel cell technology, represents a great potential solution to deliver affordable, renewable and reliable electricity to customers who deserve better options than what exists today," he added.
Using the cracking technology, AmmPower looks to store and transport hydrogen around the world as ammonia before converting it back into hydrogen for a cleaner and more efficient end-use when it reaches its destination. PWWR, meanwhile, is developing low-cost hydrogen fuel cell systems for global markets, which can convert hydrogen into electricity with zero carbon dioxide emissions.
The joint venture aims to showcase the market opportunities and ultimate value potential of advancing such ammonia-to-power technology for off-grid and back-up electricity across North America.
Both PWWR and AmmPower will work together over the coming months to identify suitable sites and partners for the execution of the joint venture. PWWR has already identified and begun discussions with a number of targets to demonstrate the combined technology’s ability to deliver affordable, renewable and reliable power in support of their operations and requirements.
AmmPower's CEO, Dr Gary Benninger, said: "AmmPower is pleased to enter in a Joint Venture with PWWR to take advantage of the numerous opportunities in the alternative energy space. The AmmPower team has leading cracking technology that complements PWWR fuel cell innovations, and we look forward to working with the PWWR team on solving the world’s energy needs."
The obligations of the parties will be subject to customary conditions after satisfactory completion of due diligence, including the board of directors of each party approving the proposed transaction and the parties’ execution of a definitive agreement.
Alkaline Fuel Cell Power is a diversified investment platform developing affordable, renewable, and reliable energy assets and cleantech. It operates through two global entities: Fuel Cell Power NV, a wholly-owned subsidiary in Belgium, and PWWR Flow Streams, an AFCP brand in Canada.
Contact the author at jon.hopkins@proactiveinvestors.com