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LONDON (Alliance News) - AFC Energy PLC Thursday said progress has remained on track despite "multiple external factors" negatively impacting global markets, and clarified that its EU programmes will remain unaffected by the result of the EU referendum in the UK last week.
"As many of you will have seen, the last quarter has been witness to multiple external factors that have had material effects on global markets, political certainty and international energy policy," said AFC Energy, a developer of alkaline fuel cells focused on industrial application.
"Despite these events, which have led to uncertainty across the capital markets in particular, I'm pleased to announce that AFC Energy has continued to focus on progressing its targeted milestones for 2016," the company added.
AFC said it was aware of the concerns about the fall in the company's share price from shareholders - with shares trading over 37% lower than at the start of the year.
"Whilst it is not always appropriate for me to comment specifically on share price movements or targets, it is true to say that the company has had a material overhang in its stock at least since March 2016 where several million shares have been sold on market by one seller which many saw culminate in a block trade a week or so ago and therefore closing out their position," said AFC.
Shares were trading up 8.5% to 14.65 pence per share on Thursday morning.
AFC Energy said it also secured a EUR2.1 million payment from the European Union's Fuel Cells and Hydrogen Joint Undertaking earlier in June for its flagship POWER-UP programme.
The company said it still expects to receive further grants in the future and stressed the UK's choice to leave the European Union last week will not affect the business.
"AFC Energy will continue to deliver on its commitments under the two outstanding EU programmes for which the company is the project co-ordinator, namely POWER-UP and ALKAMMONIA, and we expect to receive all outstanding grant funding arising from these projects," said AFC.
"Going forward, there is uncertainty over the applicability of EU funding for new projects which may or may not arise and we are in dialogue with the EU [authorities] in regards to future EU-funded opportunities. Of course this will not preclude the company from pursuing any commercial project opportunities in the EU," the company added.
AFC commissioned the KORE fuel cell system in Germany during the first quarter of 2016 and in the second quarter the company restarted operations at Stade, whereby the KORE system is being utilised to test key concepts of Generation 2 fuel cell stack design improvements.
AFC also conducted its longest running trial to date of a single fuel cell stack at Stade with further longevity testing ongoing and the company is now on track to deliver the 10.0 kilowatt single stack product design and manufacture, it said.
AFC remains on track to deliver the 1.0 megawatt product concept and design and has also demonstrated the KORE system can be operated unmanned, further evidencing the ability to operate the fuel cell system remotely and safely.
"In summary, there is significant work ongoing within the technical team and with our partners plantIng towards delivery of our 2016 technical milestones," said AFC.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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