TIDMAFC
RNS Number : 8228L
AFC Energy Plc
24 July 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.
24 July 2017
AFC Energy PLC
("AFC Energy" or the "Company")
AFC Energy Commences FEED on Landmark Hydrogen Fuel Cell
Micro-Grid in Surrey at Dunsfold Park
AFC Energy (AIM: AFC), the industrial fuel cell power company,
is pleased to announce it has executed a term sheet with Dunsfold
Park Ltd. ("Dunsfold Park") to commence Front End Engineering and
Design ("FEED") work on a landmark hydrogen micro-grid at the
Dunsfold Park site in Surrey, UK.
The FEED will commence immediately.
Highlights
-- AFC Energy to commence FEED study for an initial 1 - 1.5 MW
hydrogen fuel cell micro grid, sufficient to power up to 2,500
homes, as part of the Dunsfold Estate Masterplan residential and
industrial redevelopment
-- FEED study to deliver a fully engineered project and cost estimate of +/-10%
-- The hydrogen micro-grid is the first known initiative of its kind in the world
-- The micro-grid as envisaged will install at varying stages:
o 1 - 1.5 MW of AFC Energy hydrogen fuel cell generation
capacity
o AFC Energy integrated hydrogen battery
o hydrogen vehicle refuelling station
o electric car recharging points (sourced from hydrogen fuel
cell generation)
o low grade heat integration from the AFC Energy fuel cell
-- The scheme will be supplied with "green" hydrogen sourced locally via bio-methane
-- Plans to deliver the micro-grid across multiple phases
commencing second half of 2018 in line with demand from the
Dunsfold Park site
Dunsfold Park is home to AFC Energy's head office, and under its
site redevelopment Masterplan, is scheduling the development of an
initial 1,800 new homes and green space, co-existing with light
industry, to create one the UK's largest residential and industrial
brownfield redevelopment projects.
AFC Energy and Dunsfold Park have executed a Term Sheet which
seeks to deploy up to 1 - 1.5 MW of the Company's fuel cell systems
on site as part of a residential and industrial energy micro grid
to meet the growing needs of the redeveloped site.
The scheme expects to be supplied with "green hydrogen" sourced
locally from bio-methane (anaerobic digestion facility) making the
proposition an entirely renewable and clean micro-grid which could
have application not only across the UK, but could also be
replicated internationally across all brown and green field
residential, commercial and industrial developments.
The clean micro-grid is entirely consistent with the Dunsfold
Park renewable energy strategy and that of the UK Government's
industrial policy and policy of building more stability,
flexibility and resilience into local power grids through the
decarbonisation of the national power grid.
AFC Energy will commence work on the FEED in August 2017 to
fully engineer and cost up the project to +/-10% cost accuracy
before sanction is given by both AFC Energy and Dunsfold Park. The
commercial terms of project ownership, power pricing and revenue
sharing (expected to be in excess of GBP25m over the 20-year life
of the project) will be developed in parallel. Furthermore, both
parties are interested in considering different delivery and
ownership models including a joint venture.
Power generation from the fuel cell facility in conjunction with
the existing solar farm on site, will make Dunsfold Park the only
Business Park in the UK with a micro grid supplied entirely by a
combination of hydrogen / renewable derived energy, highlighting
the importance and prominence of this project in the context of the
UK energy market.
The timing for delivery of the project will be divided into
multiple phases in recognition of the growth trajectory for new
energy demand in conjunction with the site's redevelopment
initiatives. Indicatively, the parties hope to deliver the first
0.5 - 1 MW of installed generation capacity in Q4 2018 and the
second tranche of installed power capacity by the end of Q3
2019.
Jim McAllister, Chief Executive of Dunsfold Park Ltd, said: "We
are delighted to be collaborating with AFC Energy, a long-time
tenant of Dunsfold Park on this nationally significant hydrogen
fuel cell project. We look forward to seeing the results of the
FEED study and endorse the initiative's full alignment with
Dunsfold Park's clean energy strategy which has permeated all of
our redevelopment activities over the past few years. Initiatives
such as this collaboration with AFC Energy further highlight
Dunsfold, the Borough of Waverley and the County of Surrey's
prominence at the forefront of renewable energy technologies."
Adam Bond, AFC Energy's Chief Executive Officer, said: "As
long-term tenants of Dunsfold Park, we are delighted to now be
collaborating in the commercial deployment of AFC Energy's fuel
cell technology. The introduction of hydrogen derived from
renewable sources is a particular highlight of the proposed scheme
and re-emphases the potential innovation in sourcing long term,
sustainable hydrogen for our fuel cell projects. This scheme offers
the potential for national and international replicability and
could become a benchmark in localised hydrogen micro-grids. We look
forward to working closely with Dunsfold Park in delivering this
important clean energy initiative for the region."
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. 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: www.afcenergy.com
This information is provided by RNS
The company news service from the London Stock Exchange
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