TIDMAFC
RNS Number : 2446B
AFC Energy Plc
03 April 2017
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014. Upon the
publication of this announcement via a Regulatory Information
Service ("RIS"), this inside information is now considered to be in
the public domain.
3 April 2017
AFC Energy PLC
("AFC Energy" or the "Company")
Industrie De Nora S.p.A Joint Development Agreement - Update
AFC Energy (AIM: AFC), the industrial fuel cell power company,
is pleased to provide an update to the market on the status of the
Company's Joint Development Agreement ("JDA") with Industrie De
Nora S.p.A. ("De Nora").
Highlights
-- Extensive programme of 145 variant fuel cell tests conducted
by AFC Energy under the JDA with De Nora
-- Material improvements in fuel cell longevity and degradation
rates achieved vs the successful Gen2 baseline data
-- Growing confidence at AFC Energy that commercial life
expectancy of fuel cell stack may exceed initial target of twelve
months within the targeted cost levels
-- Improvements in fuel cell longevity has potential to
materially reduce operating costs and improve the profitability of
projects for AFC Energy due to improved operating cost levels
-- Lower cost of fuel cell operation further increases size of AFC Energy's market opportunity
-- All testing at AFC Energy now conducted with lower industrial
grade (and therefore lower cost) hydrogen without affecting the
expected lifetime of the fuel cell system - increases further
potential economic market size for the Company's fuel cells
De Nora, a multinational leader in sustainable technologies, and
the largest producer of commercial electrodes for all major
industrial electrochemical applications internationally, has been a
key technology partner to AFC Energy since the second half of 2016.
The JDA collaboration, announced to the market in August 2016, was
intended to target accelerated technological enhancements to AFC
Energy's fuel cell system, lower their cost of production and
operation, and further progress the commercialisation of AFC
Energy's fuel cell technology platform.
AFC Energy has now performed more than 145 tests with De Nora
using several configurations and different system specifications at
our Dunsfold facilities, targeting specific variations to aspects
of the fuel cell system design, utilising De Nora's experience in
the water electrolysis and chlor-alkali industry. An expert team
from De Nora, including recognised experts in electro-chemistry
from Japan and Europe, have collaborated with AFC Energy's team to
deliver a number of material improvements to the AFC Energy fuel
cell system.
As a result of these extensive tests, the Company is
increasingly confident that it is possible for AFC Energy fuel
cells to exceed the Company's commercial lifetime target of 12
months. Several iterations of the fuel cells have shown a robust
performance over extended period of time with a materially lower
rate of degradation than previously experienced relative to the
Gen2 system.
Importantly, based on the results obtained under the JDA, AFC
Energy is now targeting a commercial life expectancy well in excess
of 12 months and at a lower cost of delivery than earlier
generations of its fuel cell. This increase in longevity is
expected to materially reduce the cost of power produced and
consequently, increase the potential market size of the AFC Energy
fuel cell.
The improvements in longevity seen in the JDA tests are being
integrated into the Company's current fuel cell stack design and
AFC Energy plans to execute further longevity trials confirming the
enhancements shortly. These latest design modifications, revised
stack engineering and the ability of AFC Energy's fuel cells to use
a lower grade hydrogen demonstrates the commercial progression of
the AFC Energy fuel cell system with which the Company will be able
to penetrate its target markets. The Board believe that a material
improvement in longevity, and associated reduction in cost of power
will materially support a very competitive "total ownership cost"
to AFC Energy's partners and projects
Adam Bond, AFC Energy's Chief Executive Officer, said:
"I've been delighted with the progress both companies have made
in progressing the respective work packages under the JDA. The
collaboration has been first class and with the direction of travel
we are now pursuing and advances made, particularly in the area of
cell longevity, I'm confident that the results we are seeing will
materially support our conversations with commercial project
partners during the coming 12 months."
For further information, please contact:
AFC Energy plc
Adam Bond (Chief Executive Officer) +44 (0) 20 3697 1209
Cantor Fitzgerald Europe - Nominated Adviser and Joint Broker
Andrew Craig
Richard Salmond +44 (0) 20 7894 7000
M C Peat & Co LLP - Joint Broker
Charlie Peat +44 (0) 20 7104 2334
Lionsgate Communications - Public Relations
Jonathan Charles +44 (0) 20 3697 1209
About AFC Energy
AFC Energy plc has developed and successfully demonstrated an
alkaline fuel cell system, which converts hydrogen into "clean"
electricity. AFC Energy's key project POWER-UP demonstrated the
world's largest operational alkaline fuel cell system at Air
Products' industrial gas plant in Stade, Germany in January 2016.
The Company is now looking to build upon an already established
pipeline of commercial opportunities and drive the findings from
the development phase of the technology into a technically
optimised and commercially relevant fuel cell system. For further
information, please visit our website: ww.afcenergy.com
About De Nora
De Nora is an Italian multinational leader in sustainable
technologies that offers energy saving products and water treatment
solutions. Globally De Nora is a pioneer of electrodes for
electrochemical processes (Chlorine & Caustic, Electronics
& Surface Finishing, Pool Electrochlorination, water
electrolysis, fuel cells and specialties) and is among the leaders
in technologies and processes for the filtration and disinfection
of water (industrial use, municipal water and wastewater, marine
and offshore oil and gas). The Company has grown organically by
continuous innovation and externally through major acquisitions in
the USA, Japan, the United Kingdom and Italy. It serves clients in
119 countries and has a physical presence in 11 countries worldwide
with 29 offices, including 13 manufacturing facilities, and three
research & development centers in Italy, the USA and Japan. The
Group intellectual property portfolio currently contains 356 patent
families with more than 2,000 territorial extensions.
More information at www.denora.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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