AFC Energy Plc - Investment in new facility
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AFC Energy PLC
("AFC Energy" or the "Company")
Investment in first H-PowerTM Assembly and Commissioning Facility
AFC Energy (AIM: AFC), a leading provider of hydrogen power generation technologies, is pleased to confirm it has secured a long term lease over new premises at its
· A 30,000 square feet facility has been secured at
· The facility housed British Aerospace's original manufacture of the Harrier aircraft with a long and distinguished history in high tech British engineering and innovation, which AFC Energy is proud to continue.
· Containerised balance of plant from BK Gulf and electrodes from De Nora will be received at the site for complete assembly and on-site system commissioning before providing a logistics hub for customer dispatch.
· An initial investment of
· The facility will also accommodate an additional 40 office desks for manufacturing and engineering staff.
· Growth potential exists for the facility to assemble up to 200MW per annum of H-Power systems when the Company releases its new high-density alkaline fuel cell system anticipated from the end of 2022.
· Mass production potential of AlkaMem® at site also exists as demand for the membrane grows.
· The new facility will be utilised immediately for the final assembly and commissioning of the Extreme E, ACCIONA and Juelich systems and expects to be fully retrofitted and operational by end of
· Investment in the facility represents excellent value for money for shareholders, avoiding an otherwise sizeable investment in new customised facilities, through adoption of AFC Energy's current low-cost manufacturing strategy.
AFC Energy today announces a further step towards mass production of its H-PowerTM fuel cell power generators with the signing of a long-term lease over assembly and commissioning facilities adjacent to its
AFC Energy's manufacturing strategy is predicated on the outsourcing of key component manufacturing for its H-PowerTM system with a view to leveraging existing supplier purchasing power, maximising the use of existing large scale manufacturing and fabrication yards, and accordingly, driving down cost.
Key components of the H-PowerTM system will continue to be outsourced including electrodes from De Nora and more recently, containerised balance of plant fabricated by BK Gulf in
The current pipeline of projects will all be assembled at the new facility, along with future orders into 2021. The site is expected to accommodate the assembly of over 100 systems per annum with scope for growth, allowing AFC Energy's assembly capacity to meet customer demand without the need for further investment.
It is expected to also accommodate manufacturing and assembly of the "S" Series high energy density fuel cell system from late 2022. The "S" series fuel cell is expected to match energy density of PEM systems with up to 2MW of clean generation capacity expected within a 40ft shipping container, meaning assembly capacity from the site should facilitate over 200MW per annum of alkaline fuel cell systems to be assembled and deployed from
Importantly, the Company's scale up and manufacturing strategy for the AlkaMem membrane remains under review, however, the scale of the new hanger facility means AFC Energy will have the flexibility to manufacture and prepare for dispatch, large volumes of membranes for alkaline water electrolysis and other applications alongside customer orders.
AFC Energy reviewed alternative, customised sites outside of
Going forward, AFC Energy's manufacturing strategy means it could consider the creation of regionalised hubs for system assembly and commissioning to further reduce logistics, assembly and commissioning costs where regional customer interest in our fuel cell system is prominent.
For further information, please contact:
AFC Energy plc
+44 (0) 14 8327 6726
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WH Ireland - Nominated Adviser and Joint Broker
Mike Coe (Corporate Finance)
+44 (0) 117 945 3470
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M C Peat & Co LLP - Joint Broker
+44 (0) 20 7104 2334
Zeus Capital Limited - Joint Broker
+44 (0) 203 829 5000
Tuva Partners - Public Relations
+44 (0) 7900 205 460
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About AFC Energy
AFC Energy plc is commercialising a scalable alkaline fuel cell system, to provide clean electricity for on and off grid applications. The technology, pioneered over the past twelve years in the
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