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In addition, to its liquid alkaline fuel cell AFC Energy has developed a solid alkaline fuel cell, HydroX-Cell(S), which has a higher power density, meaning that for any given surface area of fuel cell it stands to produce considerably more power than is possible with a liquid fuel cell. Essentially this allows for a more compact system.
The solid alkaline membrane in AFC Energy’s solid alkaline fuel cells, AlkaMem™, has multiple applications outside of fuel cells. The company’s membrane would have many of the applications of proton exchange membranes (“PEMs”), which conceptually serve the same function.
Such membranes allow hydrogen cations (hydrogen atoms with one proton and no electrons) to pass through them while not allowing hydrogen atoms (hydrogen atoms have one proton and one electron) to pass. In other terms such membranes have unique electro-chemical properties and are suitable for a number of commercial electro-chemical processes.
Outside of a fuel cell, there are multiple applications for PEMs and comparable membranes.
The most prominent PEM product is DuPont’s proton exchange membrane, which is sold under the trade name Nafion®. Nafion® was developed by Dow Chemical.
Our understanding is that Nafion® has a dominant position within the PEM market because of its unparalleled performance and durability. A host of markets for Nafion® have developed due to its unique properties:
1. For energy it has been used for a number of specialist electrical applications, to generate hydrogen from electrical energy (electrolysis), to regulate the efficient use and storage of energy and for fuel cells (generating electrical energy from
hydrogen).
2. Many chemical processes that require high-quality resins, membranes and catalysts use Nafion® products. In particular, chemical processes that require extremely pure chemicals can use Nafion® to increase chemical purity.
3. Chlor-alkali processes produce chlorine and alkali simultaneously as a result of the electrolysis of saltwater. Nafion® allows this process to be accomplished without the use of environmentally harmful chemicals or excessive amounts of
energy.
4. Nafion® membranes are suitable for hydrogen powered vehicles because they allow for considerable energy to be produced relative to the weight and volume of the associated fuel cell.
The market for Nafion™ in 2018 has been estimated at $1.2 billion globally and is forecast to grow at 8.5% annually up to 2022 (source: MarketWatch, 7 March 2019)
Continued...
If AFC Energy’s solid alkaline membrane (AlkaMem™) becomes as technologically robust as its liquid alkaline technology, it would, in our opinion gain a considerable share of the PEM market. In particular, the ability of the membrane to operate with less pure hydrogen (and hydrogen cracked from ammonia) means that it would require less expensive chemical feedstock for PEM applications.
AFC Energy has identified the following markets as potential key markets for its solid alkaline membrane:
1. Alkaline water electrolysis (Chlor-Akali)
2. Electrodialysis (water treatment, inter alia)
3. Desalination
4. Acid Remediation
5. Salt water batteries
6. REDOX flow batteries (reduction-oxidation batteries)
We have not ascribed any value to the potential of AFC Energy’s AlkaMem™, but have seen the product work under test conditions. If AFC Energy is able to advance its solid membrane to a stage of development comparable to that of its liquid fuel cell technology, we would expect there to be a market for the solid membrane and that it would be an excellent acquisition target for a major chemical or electrical company.
DeNora a global leader in hydrogen and electrode technology and a manufacturing partner of AFC Energy recently undertook third party testing of the AlkaMem™ in Japan. DeNora stated that based on its internal testing standards the membrane technology exceeded internal expectations and has demonstrated the ability to offer significant
improvements relative to what is currently industry standard technology. In particular voltage drops or the rate of fuel cell degradation over time with utilisation was better than standard technologies.
“If AFC Energy’s alkaline membrane (AlkaMem) becomes as technologically robust as its liquid alkaline technology”. I wonder if De Nora are helping out in that department under the extension of the Joint Development Agreement?
Sell the IP I say, and license back exclusive use of it in alkaline fuel cells only for 10 years.
That would be similar to how businesses sell their HQ and lease it back. It releases a huge amount of cash that the company can use to grow the business.
That kind of sale has to be worth £500m. Imagine how much progress AFC could make with that kind of money, let alone what the shares would be worth, and no more dilution ever
Chemours own the Nafion trademark and manufacture it.
https://www.nafion.com/en
They are big enough to finance the purchase of the membrane IP for the kind of sum I suggested. They have a lot to lose by not doing so.
https://www.chemours.com/en/news-media-center/all-news/press-releases/2019/the-chemours-company-reports-third-quarter-2019-results
Do you really think those running the company and pretty much all its investors give a damn what happens in 10 years time????
How many installations will AFC ALREADY HAVE in 10 years time, with cartridge replacement contracts in place for the following 10 years????
I've held the stock for 11 years. I don't want to have to hold it for another 10 years, I want my ROI a lot sooner than that!
Selling the membrane IP for £500m gives us and AFC what we want, today.
I think I am with you on this one DW.
On their website AFC are asking for partners across industry. Lets hope there will be opportunities abound, to sell the technology.
Hi Nickel , thanks for taking the time to share all that valuable information , may I ask where you got it from ?
Best not to ask I suspect, just make good use of the info. Thanks again Nickel. Is there any more?
Taken from NI's post:
If AFC Energy’s solid alkaline membrane (AlkaMem™) becomes as technologically robust as its liquid alkaline technology, it would, in our opinion gain a considerable share of the PEM market. In particular, the ability of the membrane to operate with less pure hydrogen (and hydrogen cracked from ammonia) means that it would require less expensive chemical feedstock for PEM applications.
I have not heard it said that a PEM fuel cell could operate on less pure hydrogen or ammonia. I wonder if that is right as I thought this is a function of alkaline fuel cells rather than a function of the membrane. If it does render PEMs able to use less pure feedstock then one of the AFC cell's USPs is undermined, but Alkamem will rule the world!
Doc, must admit when I first read it I thought the same. Guessing if you replaced for with than, it would make more sense.
Doc7, I think there is a confusion in that report. PEM cells have a membrane that operates in acidic conditions, so they cannot cope with hydrogen derived from ammonia, without scrubbing. They need five nines hydrogen whereas AFCs can cope with three nines hydrogen, much cheaper. I think what the report is saying is that the alkaline membrane could capture a considerable share of the market currently claimed by PEMs.
I see what you are saying BumbleB. It is badly written and confusing. I think you are right though.
Doc
Doc, no the broker note is correctly worded. Nafion is a type of PEM membrane.
The link below also explains the varying thicknesses. The very thick material is used in situations where extra longevity is required, or when the membrane will be operating under high pressures.
https://www.fuelcellstore.com/fuel-cell-components/membranes/nafion
As I posted last night, all of NI's posts are cut and pasted from the WH Ireland broker note from 11th November. As AB said at the shareholder day, this is not open to private investors and it has copyright so I am assuming that NI has thought through his decision to post these carefully.
IMHO the projections in the note are far more conservative than what the company was saying last week but we will need to wait and see.
Nafion, £3900 per square meter!
And a shed at Dunsfold can turn it out by the roll.
Then I think my comments were right Bumble B. It refers to the membrane taking a significant share of the PEM market, not AFC fuel cells taking a significant share from PEMs.
I may be reading it wrong!!
Sorry, for those not on the thread, I referred to the Alkamem before the investor day and again afterwards being a major source of revenue for AFC. ….many pages back now given the volume of posts. I also heard at the investor day that Alkamem displaces PEM membranes from PEMs. I think that is what Doc7 is saying, but Bumble B has a different take. I struggled at the investor day as I was in the second row from the back and could not hear well....or indeed see the slides, although that is now corrected.
Morning athansius. Nafion and AlkaMem are both proton exchange membranes. They can be used inside fuel cells, Nafion in an acidic PEM fuel cell, Alkamem in a solid alkaline hi power fuel cell.
The bit of text I was referring was from the broker note detailing its possible use outside of fuel cells.
.
In other words....its flippin brilliant so lets hope we can see a little interest in the next few weeks to make a great start for the new year...that would be nice!
My take Athasius
The AlkaMemTM doesn't replace the pem membrane, it has achieved almost the same current density but can use lower grade cheaper to produce hydrogen, pem is acidic and uses expensive noble metals for the electrodes. So afc's alkaline solution is a winner.
Will investors be getting updates on the demo programme this month?
Doc7 and the wh ireland comment about alkamem may raise something I had not considered.
Using alkamem in the AFC (S) fuel cell will make a something competitive with the existing PEM market (size and power output) but with the considerable advantage of using lower purity and cheaper hydrogen. The price advantage of using cheaper hydrogen is a game changer.
This could leave AFC with a (fantastic to have) dilemma.
1) Do they licence alkamem to other PEM users. Perhaps they can improve their product to use lower purity hydrogen. This could earn a lot of money for AFC.
2) Do they keep alkamem to themselves so that the AFC (S) fuel cell becomes better than existing PEM fuel cells and takes a big chunk of the existing PEM market. This could earn a lot of money for AFC.
Ho hum..
I am holding on to my shares.
richlist, as I understand the situation they have said that they will license use of AlkaMem for non-fuelcell uses. The membrane will be used in their hi power cell, not in other companies fuel cells.