AFC Energy Plc AFC and Dutco Sign Heads of Agreement (6975G)
November 24 2015 - 2:01AM
UK Regulatory
TIDMAFC
RNS Number : 6975G
AFC Energy Plc
24 November 2015
24 November 2015
AFC Energy PLC
("AFC" or the "Company")
AFC and Dutco Sign Heads of Agreement to Develop Business Plan
for Large-Scale Fuel Cell Deployment across the Middle East
AFC Energy plc (AIM: AFC), the industrial fuel cell power
company, is pleased to announce that it has signed a Heads of
Agreement with DNR Industries Ltd., part of the leading Dubai-based
investment and project developer, Dutco Group of Companies
("Dutco") to jointly fund and develop a business plan for the
large-scale deployment of AFC's fuel cells across the Middle
East.
The business plan will focus on defining a commercial strategy
for what is expected to be a significant commercial fuel cell
deployment opportunity, and pending the outcome of the business
plan, is anticipated to result in the formation of a joint venture
between the two companies to execute the plan commencing in the
first half of 2016.
The joint venture between AFC and Dutco, is expected to cover
the deployment of AFC's fuel cell across the United Arab Emirates,
Kingdom of Bahrain, Kingdom of Saudi Arabia, Sultanate of Oman,
Qatar and Kuwait. Based on initial estimates from market soundings
already undertaken in the region individually and collectively by
AFC and Dutco over recent months, this could present an opportunity
on its own to deliver a large percentage of, if not in excess of,
AFC's stated target for 1GW of fuel cell development by the end of
2020.
The business plan will also explore potential commercial models
for the joint venture between the two companies with a long-term
strategic view being taken regarding the prospect for a regional
power utility.
Dutco has a long history of successful investment and project
development across the Gulf region, and internationally, covering
construction, oil and gas, hotels and hospitality and natural
resources, and has successfully delivered a number of the region's
largest infrastructure projects.
Mr Adam Bond, AFC's Chief Executive Officer, said: "I have long
considered the Middle East to present AFC with an enormous
near-term opportunity to deploy the Company's alkaline fuel cell
technology into the growing clean energy portfolio of projects
being supported in the region. The potential to work in
collaboration with a group with the regional stature as Dutco
presents a significant opportunity to not only leverage highly
complementary skills sets and characteristics of the two companies,
but also create a sizeable business platform for the deployment of
the AFC fuel cell on an unprecedented scale."
Mr Bond further commented: "Dutco and AFC are already in
dialogue with several of the Middle East's largest energy and
utility groups to assess the opportunity for not only the supply of
clean power to the region, but also significant quantities of clean
water and to date, we believe the business potential for the AFC
fuel cell in this region is one of the largest in the world. We
look forward to further developing this business plan with Dutco
over the coming weeks and start creating the basis of a long-term,
sustainable energy and water business across the Middle East."
For further information, please contact:
AFC Energy plc
Adam Bond (Chief Executive Officer) +44 (0) 20 3697 1209
Zeus Capital Limited - Nominated Adviser and Joint Broker
Phil Walker, Nicholas How
Alex Davies, John Goold +44 (0) 3829 5000
M C Peat & Co LLP - Joint Broker
Charlie Peat +44 (0) 20 7104 2334
Lionsgate Communications - Public Relations
Jonathan Charles, Rachel Rigby +44 (0) 20 3697 1209
About AFC Energy
AFC Energy plc is fast approaching commercialisation for its
proven low-cost alkaline fuel cell system ("KORE"), which converts
hydrogen into 'clean' electricity. AFC's key project POWER-UP will
demonstrate the world's largest alkaline fuel cell system at Air
Products' industrial gas plant in Stade, Germany. The date for the
demonstration of the 240kW KORE system has been fast tracked to
December 2015, representing the final phase of AFC's
pre-commercialisation technical development programme and creating
the platform for the Company's global commercial fuel cell
deployment. For further information, please visit our website:
www.afcenergy.com
About Dutco Group
Dutco Group
Established in 1947, the Dutco Group is a leading Dubai-based
investment and project development company with interests in
construction, oil and gas, freight and logistics, and hospitality.
It has developed into a leading conglomerate of business interests
through a philosophy of long-term strategic investment, often with
joint venture partners. Its exclusive joint ventures with companies
such as Balfour Beatty and McConnell Dowell in the Middle East have
successfully delivered projects across the region for over 40
years. The Dutco Group also actively participates in Joint Ventures
across the petro-chemical industry, including with Qatar Petroleum
in one of Qatar's most successful joint ventures. For further
information, please visit the Dutco Group's website:
www.dutco.com
This information is provided by RNS
The company news service from the London Stock Exchange
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