TIDMAFC
RNS Number : 0526Z
AFC Energy Plc
08 December 2014
8 December 2014
AFC Energy PLC
("AFC" or the "Company")
POWER-UP Programme Status Update
AFC Energy plc (AFC.L), the industrial fuel cell power company,
is pleased to provide an update on the status of the POWER-UP
project ("POWER-UP" or "the Project"), which will demonstrate the
world's largest alkaline fuel cell system at Air Products'
industrial gas plant in Stade, Germany.
Highlights:
-- Fast tracking the date for demonstration of 240kW from the KORE to December 2015
-- Rapid deployment of the Company's in-line volume fuel cell
fabrication processes will enable more fuel cells to be produced
than was originally anticipated
-- First power generation in July 2015 of the KORE system: POWER-UP Phase 1
The Project, supported by the European Union's Seventh Framework
Programme (the Fuel Cells and Hydrogen Joint Undertaking), provides
an opportunity for AFC Energy to demonstrate for the first time the
ability of the Company's alkaline fuel cell system (the "KORE") to
achieve technical performance parameters reflective of an
operational commercial facility.
POWER-UP reflects the final phase of AFC Energy's
pre-commercialisation technical development programme and creates
the platform for the Company's global commercial fuel cell
deployment.
A detailed assessment of the POWER-UP programme over the last
week has identified an opportunity to accelerate the date for
commercial fuel cell demonstration of the KORE at its full design
specification (expected to be 240kW) to the end of 2015; an
acceleration of over eighteen (18) months. This will largely be
achieved by;
1. Placing emphasis on achieving maximum output from the fuel
cells in order to demonstrate the operability of the KORE. In
parallel, AFC Energy will further refine its leading fuel cell
technology such that once KORE design validation is achieved, the
KORE will be operated with fuel cells designed to achieve high
power and increased longevity.
2. Rapid deployment of the Company's in-line volume fuel cell
fabrication processes that will enable AFC Energy to produce more
fuel cells in 2015 than was originally anticipated.
The updated programme up to commencement of POWER-UP in July
2015, and the first six months of operation are contained in the
Attachment.
Key highlights extracted from the schedule include:
1. First power generation in July 2015 of the KORE system at Stade: POWER-UP Phase 1;
2. Introducing a new phase to the Project which aims to produce
commercial revenue from the POWER-UP KORE in Q4 2015;
3. Fast tracking the date for demonstration of 240kW from the KORE in December 2015.
There are a number of risks to the achievement of this ambitious
schedule, all of which are normal for a project of this nature,
including those relating to the successful phased delivery of the
technical programme, logistical matters out of the control of AFC
Energy, including project permitting and achievement of
construction timelines agreed with EPCM contractors, and connection
of the KORE to the grid which was not part of the original POWER-UP
proposal.
In order to achieve the revised POWER-UP programme, AFC Energy
is pleased to announce that this week, a contract was executed with
Artelia, a leading European engineering, consulting and project
management firm, and their sub-contractors, PlantIng, a leading
German process engineering consultancy, for the undertaking of all
engineering and design works associated with the delivery of the
POWER-UP programme on site in Stade. This work has now commenced
and is due to conclude with a facility capable of accepting the
KORE in May 2015 (subject to permitting).
Adam Bond, AFC Energy's Chief Executive Officer, said: "Delivery
of the KORE and POWER-UP programme is essential to the validation
of AFC Energy's leading alkaline fuel cell technology. There is a
lot of work still to be done before we are able to confirm
achievement of our POWER-UP objectives, however, an operational
reference project by the end of next year will significantly
accelerate our plans for commercial deployment and market
penetration."
Mr Bond further stated: "I have been greatly impressed by the
enthusiasm of AFC Energy's technical team to identify opportunities
to fast track the delivery of the KORE and POWER-UP by reducing the
expected time for operation of the 240kW KORE module by 18 months.
I believe this demonstrates the strong drive and focus that exists
within AFC Energy to see commercial-scale fuel cells operating in
the global market place as soon as possible following conclusion of
the pre-commercialisation phase of development work."
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
Dan Bate, John Depasquale (Corporate Finance)
Alex Davies, John Goold (Institutional Sales) +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
Founded in 2006, AFC Energy plc is re-engineering proven
alkaline fuel cell technology to reduce the cost of electricity.
Alkaline fuel cells have been used on US and Russian manned space
missions for decades to provide electrical power and drinking
water. By using platinum free, advanced materials, design tools and
manufacturing processes at scale, AFC Energy is developing fuel
cells that will compete with conventional technologies such as
turbines for electrical power generation. Today, AFC Energy is
pursuing opportunities in several sectors where hydrogen is readily
available including the chlorine, clean coal and waste-to-energy
industries as well as applications for distributed/back-up power.
For further information, please visit our website:
www.afcenergy.com.
About Project POWER-UP
Project POWER-UP is supported by funding from the Fuel Cell and
Hydrogen Joint Undertaking (FCH-JU). The FCH-JU was established by
Council Regulations on 30 May 2008 and 6 May 2014 (FCH-JU2) as a
public-private partnership between the European Commission,
European industry and research organisations. Its objective is to
accelerate the development and deployment of fuel cell and hydrogen
technologies. The Seventh Framework Programme (FP7) was created by
the European Union in order to support and encourage research in
Europe. It has since been superseded by the Horizon 2020 programme,
which brings together all the EU's research-funding schemes and
plays a crucial role in securing European growth, competitiveness
and employment.
Project POWER-UP will prove the ability of AFC Energy's alkaline
fuel cell system to deliver the technical performance and economic
viability that commercial end-users demand. Work in project
POWER-UP is the final step in the development of AFC Energy's fuel
cell system before full market deployment. This project will be the
world's first demonstration of an alkaline fuel cell system on such
a large scale.
Attachment
No. Milestone Timing Expected Outcome
---- ------------------------ --------- -----------------------------------
1 Confirm that Dec 2014 1. Using a 25-cell
cartridges cartridge, operate
can achieve from ambient and demonstrate
operating temperature that fuel cells can
using heat self-heat to desired
produced from operational temperature.
fuel cell reactions
-i.e. no external 2. Confirm time taken
heat applied. to achieve operating
temperature from ambient
(KORE system is less than 15 hours
start-up involves (as a first step towards
the cartridges achieving an ultimate
self-heating target of less than
until they 3 hours for the KORE
achieve operating system).
temperature).
3. Operate the 25-cell
cartridge under the
above regime without
loss of performance
relative to earlier
trials.
4. Freeze key aspects
of the electrode design
that will be used to
commission the Kore
System at Stade (see
Milestone 3).
---- ------------------------ --------- -----------------------------------
2 Appoint engineering Dec 2014 1. Execution of engineering
consultant and design consultants
to commence to commence permitting
design package and engineering of
for POWER-UP the Stade POWER-UP
programme in site in Germany.
Stade, Germany
2. Commence permitting
activities necessary
to commence site preparation
and facilities construction
at Stade.
---- ------------------------ --------- -----------------------------------
3 Commence operational Jan 2015 1. Baseline operating
performance performance of 50 cell
monitoring stack utilising BETA
of a 50 cell cartridge to compare
stack within performance against
an industrial 50 cell stack within
gas plant environment. the new KORE cartridge
(refer Milestone 4).
2. Confirm logistical
methodologies to deliver
commercial-scale cartridges
overseas.
3. Confirm that time
taken to achieve operating
temperature from ambient
is less than 12 hours
(as a second step towards
achieving an ultimate
target of less than
3 hours for the KORE
system).
---- ------------------------ --------- -----------------------------------
4 Commence operational Feb / 1. Final design validation
performance March of KORE cartridge that
monitoring 2015 will commission KORE
of a 100 cell system in July 2015.
stack (up to
51 live cells) 2. Cartridges will
within the be operated between
new KORE cartridge 1.5 - 2.5kW and thermally
(first time), cycled several times
with this trial (to simulate KORE commissioning).
to take place
within an industrial 3. Commence automates
gas plant environment manufacture of fuel
cell stacks to be used
in the KORE POWER-UP
programme utilising
newly commissioned
stack assembly robot.
---- ------------------------ --------- -----------------------------------
5 Commence construction Feb 2015 1. Site clearing and
of POWER-UP preparation.
facilities,
utilities and 2. Confirmation of
connections all building and construction
at Stade, Germany approvals and permits.
(subject to
timely permitting 3. Laying of foundations
and consents) and construction of
all necessary buildings
and structures ready
to receive and house
the KORE module.
---- ------------------------ --------- -----------------------------------
6 Conclude construction May 2015 1. Delivery by AFC
of POWER-UP Energy contractors
facilities, of a fully permitted
utilities and and constructed facility
connections ready to accept the
at Stade, Germany KORE and connect to
requisite piping and
hydrogen connection
points.
---- ------------------------ --------- -----------------------------------
7 Commence installation May 2015 1. Transfer of KORE
of POWER-UP to Stade from the UK
KORE system ready for installation.
at Stade, Germany
2. Connection of the
KORE to hydrogen sources
and associated utilities.
3. Leak integrity of
all fluid delivery
systems.
---- ------------------------ --------- -----------------------------------
8 Commissioning June 1. Validate safety
of POWER-UP 2015 control system protocols.
KORE at Stade,
Germany 2. Software and comms.
3. Valve and pump sequence
testing.
4. Deliver fuel cell
cartridges.
---- ------------------------ --------- -----------------------------------
9 Commence Phase July 1. Install cartridges
1 - POWER-UP 2015 that were validated
programme in February 2015 and
set flow and operational
[Emphasis on settings.
initial production
of power and 2. Using automated
associated sequence, operate single
testing prior tier (x8 cartridge)
to increasing operation and produce
power output between 7.5 to 15kW
in Phase 2] power from the KORE
(the first time).
---- ------------------------ --------- -----------------------------------
10 Commence Phase Q4 2015 1. Connect the KORE
2 - POWER-UP System to the local
programme power grid for the
purposes of exporting
electricity into the
German power grid for
the first time.
2. Operate one of three
tiers with x8 101-cell
cartridges (40kW to
60kW production).
3. Fuel cells to be
manufactured using
high-volume manufacturing
processes with improved
performance characteristics.
---- ------------------------ --------- -----------------------------------
11 Achieve first Dec 2015 1. Verification of
commercial 240kW output from KORE
scale operability system.
of KORE module
as part of 2. Independent verification
POWER-UP programme of performance by POWER-UP
partner "ZBT".
---- ------------------------ --------- -----------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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