AFC Energy Plc First Commercial PPA with Stadtwerke Stade (0728U)
July 27 2015 - 2:00AM
UK Regulatory
TIDMAFC
RNS Number : 0728U
AFC Energy Plc
27 July 2015
27 July 2015
AFC Energy PLC
("AFC" or the "Company")
AFC Signs First Commercial Power Purchase Agreement with
Stadtwerke Stade for German Fuel Cell Generation Facility
Highlights
-- Purchase power agreement (PPA) represents first commercial revenue for AFC
-- Agreed terms until 31 July 2017 with option to extend for another 12 months
-- AFC to potentially benefit from sale of power at peak power pricing
AFC Energy plc (AFC.L), the industrial fuel cell power company,
is pleased to announce that it has executed its first commercial
power purchase agreement ("PPA") with Stadtwerke Stade GmbH
("Stadtwerke Stade") for the sale of electricity generated at AFC's
fuel cell generation facility at Stade, Germany.
The sale of electricity under the PPA represents the first
commercial revenue to be generated from an AFC fuel cell system.
Furthermore, it will not only provide a source of revenue for AFC,
but also provide valuable operational experience in the dispatch of
electricity into the German power grid through one of the region's
leading power utilities.
AFC has been in discussions with Stadtwerke Stade for the last
few months in relation to the PPA and is now pleased to have agreed
terms that will see the two companies collaborate as part of the
AFC fuel cell facility in Stade until 31 July 2017, with an option
to extend the term of the PPA for a further 12 months.
The commercial terms of the PPA shall broadly reflect the sale
of electricity at spot market prices, meaning AFC will potentially
benefit from the sale of power at peak power pricing.
Adam Bond, Chief Executive Officer of AFC, said: "As we near
commencement of our first fuel cell operation at Stade, the signing
of this commercial PPA with Stadtwerke Stade provides a further
clear indication of our company's move towards commercialisation.
It is an important part of our corporate strategy to work
collaboratively with local partners in our projects and support
local economies wherever possible, which makes this deal all the
more important for AFC. We are delighted to have this opportunity
to work with Stadtwerke Stade and look forward to maintaining a
long and productive relationship with the organisation whilst we
operate our project in Stade."
Christoph Born, Managing Director of Stadtwerke Stade, said: "We
are extremely pleased to be working with AFC Energy in the
deployment of the world's largest alkaline fuel cell into the
Company's Stade facility. This project has the potential to be a
catalyst for larger scale fuel cell deployment programmes across
the country and Stadtwerke Stade's participation in this
commercialisation phase project demonstrates our company's ongoing
commitment to supporting clean energy and innovative power
technologies in Germany."
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, John Treacy
Alex Davies, John Goold +44 (0) 20 7533 7727
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 Stadtwerke Stade
Since 1859, Stadtwerke Stade has been providing the city of
Stade's public power supply.
Today, nearly 160 years later, the achievements of Stadtwerke
Stade include the supply of the city and surrounding communities
with electricity and / or natural gas, as well as drinking water.
Additionally, the company provides energy services from the
installation of modern gas heating systems to advice on various
funding options for its customers.
Additional information can be found on our website:
www.stadtwerke-stade.de/
This information is provided by RNS
The company news service from the London Stock Exchange
END
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