Purchase of Assets from Octopus Hydrogen

AFC Energy Plc

17 November 2023

 

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17 November 2023

AFC Energy PLC

("AFC Energy" or the "Company")

Purchase of UK Mobile Hydrogen Storage and Distribution Assets from Octopus Hydrogen    

AFC Energy (AIM: AFC), a leading provider of hydrogen power generation technologies, is pleased to announce it has reached agreement to purchase certain UK mobile hydrogen storage and distribution assets from Octopus Hydrogen, part of the Octopus Energy Group.    

Highlights

·      AFC Energy purchases, for an undisclosed sum, UK mobile hydrogen storage and distribution assets ("the Assets") from Octopus Hydrogen. 

·      The Assets provide immediate logistics capability for the supply of hydrogen fuel to AFC Energy's growing number of H-Power Generator sets across the UK, such as through Speedy Hydrogen Solutions.

·      The acquisition strengthens AFC Energy's leading position across an integrated UK hydrogen value chain.  

AFC Energy's acquisition of Octopus Hydrogen's Assets is the next step in bringing to market a local distributed hydrogen supply logistics capability that supports the deployment of H-Power Generators across the UK. 

Through its investment into ammonia cracking and now hydrogen storage and logistics assets, AFC Energy is able to offer a unique fueling proposition to its customers and partners that supports industry's transition to zero emission off-grid power.

The acquired Octopus Assets are able to accept hydrogen sourced from third party electrolysers, both in the UK and Europe, as well as from AFC Energy's next generation ammonia crackers, giving AFC Energy the ability to deliver, for a fee, end-to-end hydrogen fueling solutions to its customers.     

The Assets comprise two x 350bar 420kg NanoSun Pioneer Mobile Hydrogen Refueling Stations, 2 x mobile trailers (to transport the Pioneer refueling stations) and 1 x hydrogen compressor for Pioneer refilling.  At full capacity, each NanoSun Pioneer could support the fueling needs of a fleet of H-Power Generators at full load.

The Assets will be available to support Speedy Hydrogen Solutions, the Company's new joint venture with Speedy Hire in the UK and Ireland, underpinning AFC Energy's investment into the Assets.     

The agreement to purchase the mobile hydrogen storage and distribution assets of Octopus Hydrogen supports the value chain for hydrogen supply to construction and off-grid power sites and continues to position AFC Energy as the dominant UK supplier of hydrogen power generators to support industry's transition to a sustainable off-grid power solution. 

It is not AFC Energy's intention to become a capital intensive hydrogen logistics provider, however, early investment in well priced storage and distribution assets will support the maturing of the hydrogen power generator market whilst affording an opportunity to derive incremental revenue through the provision of hydrogen fuel logistics, at a reasonable scale, to customers in the UK and Ireland. 

Adam Bond, Chief Executive at AFC Energy, said: 

"We are pleased to announce AFC Energy's first investment into the distribution and storage of hydrogen to support and complement our UK off-grid power business.  Complemented by our hydrogen generation capability through ammonia cracking and methanol reforming, the logistics of distributing hydrogen is the next stage in our ambition to commercially demonstrate the viability of hydrogen as a displacement to diesel in off-grid power environments."

For further information, please contact:

AFC Energy plc Adam Bond (Chief Executive Officer)	[phone] [e-mail]
Peel Hunt LLP - Nominated Adviser and Joint Broker Richard Crichton / Tom Ballard / Georgia Langoulant	[phone]
Zeus - Joint Broker David Foreman / James Hornigold (Investment Banking) Dominic King (Corporate Broking) / Rupert Woolfenden (Sales)	[phone]
FTI Consulting - Financial PR Advisors Ben Brewerton / Nick Hennis / Tilly Abraham	[phone] [e-mail]

About AFC Energy

AFC Energy plc is a leading provider of hydrogen energy solutions, to provide clean electricity for on and off grid power applications. The Company's fuel cell technology is now deployable as electric vehicle chargers, off-grid decentralised power systems for construction and temporary power with emerging opportunities across maritime, data centres and rail as part of a portfolio approach to the decarbonisation of society's growing electrification needs.

 

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