AFC Energy Plc Quarterly Newsletter
June 30 2015 - 2:02AM
RNS Non-Regulatory
TIDMAFC
AFC Energy Plc
30 June 2015
AFC Energy Quarterly Newsletter - June 2015
Dear Shareholder,
As I write this quarters' newsletter, some of you will already
be enjoying an early summer break. For those of you relaxing, I'll
try and make this as brief as possible, but needless to say we've
been very busy this last quarter.
The key developments over the past three months have centered
around new commercial agreements in some of the world's most
attractive regions for fuel cell deployment along with the
continuing progress of the POWER-UP programme in Stade,
Germany.
In April, we made two significant announcements. The first
announcement represented our first heads of agreement in Thailand
with Bangkok Industrial Gas Co. Ltd. ("BIG") for an initial 10MW of
installed AFC fuel cell capacity across three phases. As I stated
at the time, we are extremely pleased to be working with such a
prominent and innovative Thai partner in BIG. Thailand has long
been identified as an important location for AFC, both in terms of
the market for fuel cells, but also as a possible location for
long-term manufacturing and fabrication.
Following from the BIG announcement, we signed an MOU with Dubai
Carbon Centre of Excellence ("Dubai Carbon") for the assessment of
300MW of fuel cell capacity deployment in Dubai by the end of 2020.
This programme was particularly significant as the MOU represents
the world's largest single fuel cell deployment programme and
further demonstrates both our ambitions and the progression of AFC
'out of the lab' and into the commercial sector. It is worth
repeating that we see a significant economic opportunity to
monetise not only the energy generated from the fuel cell, but also
the water by-product from the catalytic process in ways which have
never been considered before.
Many of you will be aware that in the last newsletter I stated
that I firmly believed that we want to achieve an aggressive target
of 1 GW (1,000 MW) of fuel cell capacity installed or under
development by the end of 2020. Today, I am confident that we will
exceed this figure. We have received a large amount of interest
from other prospective partners following our recent commercial
announcements in Asia and the Middle East and progress is being
made in taking these opportunities forward. In some cases, these
opportunities are likely to run into the hundreds of megawatts of
installed capacity.
Despite AFC arriving relatively late to the game I believe that
we will not only catch up with our peers, but in time become the
world's largest stationary fuel cell company. Our aggressive
commercialisation strategy continues unabated and we remain fully
focused on the technical and commercial milestones that we have set
out.
Before I come to POWER-UP and Stade can I say that it was a
pleasure to meet many of you at the AGM in April. It was good to
speak to a full room of people that share my aspirations for AFC
and were clearly knowledgeable about our technology and its
commercial potential. I took some time going over the investor
presentation but I think it was worthwhile and is something that I
plan to do again before the end of the year. I also look forward to
welcoming old and new faces at the annual investor open day later
this year.
So to POWER-UP. In Stade, progress has been swift and you almost
have to see it to believe it. When the Company announced that it
had received the second stage building permit, questions were
raised as to how achievable the timescales were for commencing
operations in Germany by the end of July. To this end, we have
pulled some photos together to demonstrate the mammoth effort being
put into the construction works not only by AFC staff, but also by
our contractors and sub-contractors. They are doing an excellent
job at pulling the construction activities together at a very quick
pace and I would like to take this opportunity to extend a thank
you to all those involved in working aggressively towards achieving
the July 2015 operational deadline I set for the project. It wasn't
too Iong ago that I was presenting a slide showing a photograph
with a rough drawn outline of where our plant was going to be so
the progress has been nothing short of spectacular.
As already mentioned, earlier this month, we received the final
permit approval for construction of the world's largest industrial
alkaline fuel cell facility in Stade. It would be remiss of me not
to express my appreciation to the consenting authorities in Germany
for the collaborative and constructive approach they have taken to
this project.
Today, it is a bustling building site with the foundations in
place, the housing for the KORE fuel cell system installed together
with all storage tanks, piping, connection points and ancillary
above ground equipment now in place. We are also finalising the
construction of the KORE in Coventry which is scheduled to be
relocated to Germany over the coming weekend.
I am happy to reconfirm my confidence in AFC delivering on its
accelerated timeline for initial power generation from the KORE
system next month.
Finally, we are working hard behind the scenes to educate
stakeholders about the benefits of the hydrogen economy and in
particular stationary fuel cells as a clean, reliable and
sustainable energy source.
I look forward to updating you in September on the progress AFC
expect to make over the next quarter; it will certainly be a
watershed moment for this company and I look forward to continuing
this exciting journey towards commercialisation.
Yours sincerely,
Adam Bond
Chief Executive Officer
This information is provided by RNS
The company news service from the London Stock Exchange
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