TIDMAFC
RNS Number : 4592S
AFC Energy Plc
16 November 2021
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16 November 2021
AFC Energy PLC
("AFC Energy" or the "Company")
ABB Places First GBP4m "S" Series Fuel Cell Order for Use in
High Power e-Mobility Charging
And
Subscribes for GBP4m of Warrants in AFC Energy
AFC Energy (AIM: AFC), a leading provider of hydrogen power
generation technologies, is pleased to announce the strengthening
of its partnership with ABB B.V. ("ABB") in the area of high-power
e-Mobility charging through execution of its first Sale and
Development Agreement ("the Agreement") in parallel with a
subscription for new warrants in the Company.
Highlights
-- ABB orders first AFC Energy "S" Series fuel cell system
for high power e-Mobility charging with a total contract
value of GBP4m.
-- Proceeds of the GBP4m order will be paid over a combination
of system deployment milestones; first upfront payment of
GBP2m invoiced immediately.
-- The Agreement fast tracks AFC Energy's high energy dense
"S" Series anion exchange membrane ("AEM") technology with
delivery now expected ahead of schedule.
-- Final system procured by ABB to have nameplate capacity
of 200kW and be capable of hydrogen and ammonia fuelling.
-- 200kW system to be engineered within 10ft shipping container
(excl. ammonia cracker) illustrating market leading energy
density of AFC Energy's alkaline fuel cell technology.
-- Order follows the successful integration trials of AFC Energy's
"L" Series fuel cell technology with ABB's energy storage
and high power EV charging platforms over the summer of
2021.
-- GBP4m subscription by way of warrants at an exercise price
of 58.8 pence per share gives ABB the option to increase
their shareholding in the Company ("the Warrant Subscription").
-- Contracted delivery of "S" Series 200kW system scheduled
for early 2023.
-- Order builds on Joint Product Development Agreement and
Commercialisation and Marketing Agreements signed with ABB
in December 2020.
-- 200kW "S" Series product specification to complement parallel
use cases in data centres, heavy duty motive (such maritime)
and off-grid power markets where ABB and AFC Energy are
also collaborating.
-- Both ABB and AFC Energy are engaging prospective customers
of the new "S" Series system, highlighting the customer
pull for the fuel flexible, high energy dense system performance.
Frank Muehlon, President of ABB's E-mobility Division, said :
"With the accelerating transition to electric vehicles there is an
increasingly urgent need for additional fast charging capability
and particularly in cost effective areas that are not grid
connected or where the grid is constrained. Following our
successful system integration in Europe over the summer, we believe
AFC Energy's new high power dense, zero-emission, hydrogen fuel
cell system to be an important part of our solution that will allow
us to make EVs accessible to everyone and further promote
sustainable e-Mobility globally."
Adam Bond, Chief Executive Officer at AFC Energy, said: "We are
delighted to receive our first "S" Series fuel cell system order
from ABB, following twelve months of high-quality collaborative
work between our two companies. ABB's GBP4m order enables AFC
Energy to deliver a 200kW "S" Series charging system in early 2023
which is a material acceleration when set against our previous
target of delivering a 10kW stack in the same period. AFC Energy is
committed to supporting ABB in delivering sustainable e-Mobility
infrastructure to the world's growing fleet of electric vehicles.
We believe our new "S" Series fuel cell platform will become the
"go to" high performance fuel cell technology capturing multiple
fuelling strategies, whilst affording best in class AEM power
density and efficiency".
Sale and Development Agreement - High Power e-Mobility Charging
Applications
In December 2020, AFC Energy and ABB signed their first
partnership agreements to create the next generation of high power
sustainable electric vehicle (EV) charging solutions for grid
constrained locations. These systems are to be powered by AFC
Energy's zero emission fuel cell technology.
The identified target market is ABB customers in regions where
grid connectivity is absent or constrained for high power EV
charging - a challenge becoming increasingly prevalent with the
increase in vehicle electrification and the growing demand for
rapid charging capability.
Over the summer, both companies successfully delivered a fully
integrated charging system at ABB's packaging facility in Estonia.
AFC Energy's "L" Series fuel cell technology was operated in
conjunction with ABB's energy storage and EV charging technology
for the first time, validating the operability and communications
architecture developed by the companies in the first half of
2021.
Following progress made by AFC Energy in delivering on its new
high energy dense "S" Series AEM fuel cell technology, ABB and AFC
Energy have now entered into a Sale and Development Agreement ("the
Agreement") for the purchase of a 200kW hydrogen powered fuel cell
generator.
The fuel cell generator is expected to demonstrate a market
leading energy density from an anion exchange membrane fuel cell
and be housed in a container approximating the size of a 10ft
shipping container. Importantly, the generator will be able to
utilise both hydrogen and ammonia (as a hydrogen carrier) as its
primary feedstock.
Proceeds received by AFC Energy under the Agreement will total
GBP4m. Of this amount, GBP2m will be payable upon the signing of
the Agreement, with two equal remaining milestone payments
receivable on validation of system performance. Proceeds will be
used to support the costs of system development and testing,
together with recovery of AFC Energy overheads and the system's
overall purchase cost.
The 200kW system will be deployed at a customer or corporate
location of ABB's choosing.
Warrant Subscription
To further align the interests of ABB and AFC Energy, ABB has
been granted warrants to subscribe for 6,802,720 Ordinary Shares in
the Company at an exercise price of 58.8 pence, being the market
closing price on Friday 12(th) November 2021.
The warrants vest across three contingent tranches linked to
receipt by AFC Energy of milestone payments under the Sale and
Development Agreement, including the GBP2m payment receivable upon
signing. The warrants have an exercise period of twenty-four months
from the date of each respective tranche's vesting date.
Any shares acquired under the terms of the warrants must be held
for a minimum of 6 months following issuance. The warrants will not
be transferable and will not be listed on AIM or any other exchange
or market.
For further information, please contact:
AFC Energy plc +44 (0) 14 8327 6726
Adam Bond (Chief Executive Officer) investors@afcenergy.com
Peel Hunt LLP - Nominated Adviser and Joint
Broker
Richard Crichton / Tom Ballard / Alexander
Allen +44 (0) 20 7894 7000
M C Peat & Co LLP - Joint Broker
Charlie Peat +44 (0) 20 7104 2334
Zeus Capital Limited - Joint Broker
Daniel Harris (Corporate Finance)
Dominic King (Corporate Broking) / Rupert
Woolfenden (Head of Sales) +44 (0) 203 829 5000
FTI Consulting - Financial PR Advisors +44 (0) 203 727 1000
Sara Powell / Ben Brewerton afcenergy@fticonsulting.com
About AFC Energy
AFC Energy plc is commercialising scalable alkaline fuel cell
systems, to provide clean electricity for on and off grid
applications. The technology, pioneered over the past twelve years
in the UK, is now deployable in electric vehicle chargers, off-grid
decentralised power systems and data centre applications with
emerging opportunities across maritime and rail as part of a
portfolio approach to the decarbonisation of local electricity
needs.
About ABB
ABB (ABBN: SIX Swiss Ex) is a leading global technology company
that energizes the transformation of society and industry to
achieve a more productive, sustainable future. By connecting
software to its electrification, robotics, automation and motion
portfolio, ABB pushes the boundaries of technology to drive
performance to new levels. With a history of excellence stretching
back more than 130 years, ABB's success is driven by about 110,000
talented employees in over 100 countries. www.abb.com
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