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This is brilliant to think that AFC are now at a level to design and build bespoke systems such as this. Just read what they are supplying and how this supports the credentials.
Marketing and branding rights included
AFC Energy's hydrogen power solution for Extreme E will showcase three primary innovative traits:
(i) zero emission power generation through use of the Company's proprietary alkaline hydrogen fuel cell;
(ii) remote manufacture of "Green Hydrogen" through micro-alkaline water electrolysis powered by the sun;
(iii) use of by-product water from the fuel cell system for on-site consumption.
The Hydrogen generation solution devised by AFC Energy will enable Extreme E to self-certify the green credentials of hydrogen fuel generated between races, removing the need to store and transport vast amounts of Hydrogen across the racing seasons.
The Hydrogen will fuel AFC Energy's H-PowerTM power generator, utilising the Company's proprietary alkaline fuel cell system, to generate zero emission power in excess of 2MWh per race event to charge Championship vehicles prior to and throughout the unique race format. AFC Energy will also supply a Battery Energy Storage System as part of its solution which will fully integrate with the H-PowerTM fuel cell system.
AFC Energy has obtained marketing and branding rights associated with the racing series, which are expected to be seen by a global audience throughout the 2021 Championship, and the events leading up to the series commencement.
AFC Stronger position that ITM now IMO and growing fast. For Parity AFC is pretty much exactly 10 bags from here.
Degsy,
Yes, I agree. I would suggest the '10 bags' from here requires a little more confirmation with further orders for H-Power.
But when Alkamem and the Mega box system come into play in a few years time I think AFC will be the largest fuel cell company globally.
This is because of the hard work they have put in to ensuring that the system is 'Low Cost' and not just a system that can be put to market at any cost
Is AFC in a stronger position than ITM? Scaling the business is the hard part. ITM are scaling, are AFC?
https://twitter.com/andy47640/status/1283311324886441985?s=21
Oh, it's an opinion, not based on anything substantial, like evidence to prove AFC are in a better position than ITM. They are not, ITM scaling their business, building a factory. AFC have a long way to go yet.
dsc1978,
Yes, AFC are doing exactly that. They will only utilise a small amount of the £31.6m to get this order filled. They will be made a payment on signing of contract. This allows them to utilise capital in the bank to continue to scale the business.
Are they behind ITM in this process ? Yes, but not significantly behind in the fact that things have only just started to take shape for ITM also.
Do AFC now have a scalable product range which can utilise many mechanisms for fuel including electrolysers, batteries and their own proprietary system. Yes.
Is this a product range that overshadows market peers ? Yes
Production of hydrogen is just an energy store. AFC can not only produce the energy store but generate energy from this also. Hence the closed loop system they are developing for Xtreme E.
That is the significance within this RNS as well as the PR benefits
Bananaman to the rescue. I agree with your assessment of the system, but it still needs some big players to be attracted to it. ITM at least have Linde and Shell invested in them.
“ Contract reflects an initial one year agreement with a down-payment payable upon order, and subsequent payments recognised when equipment is made available reflecting the unique nature of this showcase series.”
Are AFC paying them or they paying AFC?
DW- have to agree with you fully on this, it’s an AB special. IE - leaving open to multiple ways of interpretation. But like you still glad there is progress
Well done AFC - very leftfield! The entire series depends on AFC producing the goods so what better endorsement is there for AFC EV charging system? Motorway services or fleet charging should have any fears laid to rest! Finally an order - great news for all LTHs. Does that warrant setting off Stumbler's fireworks!?
Crikey, Why do we always analyse the negatives in the RNS.
This is incredibly positive.
Why would AFC pay Xtreme E ??? A down payment for what ??
Could it possibly be for the Electrolyser and fuel cell system?
DSC. Are De Nora and their list of partners not big enough ? What about Acciona. We had worked with Air producs for years also.
Come on people get behind it.
Looks good but I've been with AFC far too long to set off any fireworks.
Yep, nice little piece of news. I'll just wait to see if the SP gets to my sell figure and I'll let some go and take some profit in the knowledge it will drop back again and I can pick up some more AFC shares when it drops back. I don't think we are at the point of saying "Hold on folks this is going into the £££££s" As someone said earlier we need SALES!
RoeninV. This is a sale.
They will receive a down payment on signing of contract.
Do you mean sales plural ? as in more than just this ?
This is just one contract from 500 enquiries that have settled on the basis that AFC have the financial resources now to move forward with manufacturing. I would expect there will be more to follow in short order.
This may drive it closer to the dizzy heights of £££s but that should not take away the significance of this 'System' for hydrogen production (Green) and power off grid in remote locations
Bananaman, where is the evidence that this is a sale ? Payment on receipt of order, but what is the order for ? Marketing rights ? AFC to provide emission free EV charger on a 1 year lease contract maybe ? AB spoke about deploying reference systems and to date we have none, maybe this is the first reference system deployment that he spoke about.
Surely the only thing that needs to be added to this is water.
Power for electrolyser comes from Solar,
Power for EV charging comes from Hydrogen produced in the electrolyser.
The waste water from the reaction utilised on site. Perhaps re-looped back in with a top up.
Nothing dirty and emission free. Completely.
What size solar plant will be needed to produce 20MWh ? This isn't going to be portable. As Anneowl said, why not just use the solar plant to charge the battery, what am I missing here ?
2Mwh Daz, not 20Mwh.
Depends on the system size they are feeding. I cannot answer that.
I guess the solar system will be generating hydrogen full time (day light hours) whilst the rally is set up on site and the EV chargers will be used periodically producing 2Mwh over the course of a race.
A race could be days and days so 2mwh could be generated from a 160kw system in 13 hours over 5 days for argument sake. Whilst the solar system could be producing hydrogen and storing continuously during daylight hours
Thanks Banaman,
that's good news - "yes", in answer to your question, I did mean a stream of revenue from big orders. The big fear for any investor is that the company sells a load and then it runs up to an impressive new permanent SP. I don't think we're there yet so a few relatively risk free trades to go.
Not talking it down Bananaman, now that the hype of the RNS has passed, all of an hour, it's then natural to look at the detail. If the hydrogen is being produced by solar then what is the commercial benefit to using a fuel cell rather than just solar panels and a battery, it's important to know, as the answer would tell us if this is a commercial sale or just a deployment to show off the technology, either way it's great news but clarity from AFC would be nice.
Musc, yes but they weren't to produce hydrogen.
I guess it will be similar to this one -
https://www.solarpowerworldonline.com/2019/11/green-lantern-solar-completes-6-7-mw-2-mwh-solar-storage-facility-in-vermont/
Yes muscorum, but those little panels would only put out about 275W in bright sunlight.
I would guess that the solar panels will be to balance the loss in the system due to efficiencies.
Power from the battery or fuel cell system can be used to generate hydrogen. Whilst their are losses in the process the solar panels can be used to bridge that loss.
Why not just use the battery ?
Because the battery cannot be charged quickly from solar and once it has been discharged would take an age to recharge using a couple of 275w panels. That is why the system would be designed with solar panels to deliver power to compensate for efficiency. The fuel cell providing rapid power and the battery to store excess and feed into EV or Electrolyser as required.