- JV with Industrial Chemicals Group
- Aim to ‘disrupt’ UK market
- Shares up 62% year-to-date
Shares in AFC Energy (AFC:AIM) gained as much as 8% to 16.8p in morning trading as the leading producer of hydrogen power generation technology announced a JV (joint venture) with Industrial Chemicals Group.
The agreement will involve both companies producing hydrogen from ammonia which it will sell ‘to disrupt the UK market without reliance of government subsidies’.
The company added the joint venture will ‘leverage Industrial Chemicals’ ammonia procurement, logistics capabilities, customer base and AFC Energy’s proprietary leading cracking technology.’
Initial revenues are expected as early as 2026, subject to permits, generating up to 400kg/day of hydrogen, followed by incremental capacity through AFC Energy’s Hy-5 portable containerised ammonia crackers.
GLOBAL PARTNERSHIP
AFC Energy is no stranger to joint ventures having announced last month a global strategic partnership with Volex (VLX), the Hampshire-based specialist manufacturer of critical power and data transmission products.
Its partnership with Volex aims to drive down costs even more through materials leverage and economies of scale.
AFC chief executive John Wilson said: ‘The establishment of the joint venture with International Chemicals is an exciting step in delivering our strategy to deliver commercial viability of the hydrogen economy, without reliance on government subsidies.
‘We have been working with the company for some time to develop the joint venture and are delighted to collaborate with a partner of their capability and experience to deliver low-cost hydrogen at a market disruptive price.
‘In anticipation of regular imports of green ammonia becoming widely available in the UK from 2027, the joint venture is well positioned to take advantage of the relative ease with which ammonia can be stored in low-cost and low pressure liquified gas tanks compared to high capital costs in storing hydrogen and further benefit from significant cost advantages versus UK production from electrolysis.’
