(Alliance News) - AFC Energy PLC on Monday said it has entered into an agreement to use HiiROC Ltd's plasma process to convert natural gas into a clean hydrogen stream for fuel cell.
AFC, a developer of alkaline fuel cells which use hydrogen for electricity production, has entered into binding preliminary agreement with green hydrogen generation technology developer HiiROC under which the companies intend to commercialise HiiROC's plasma-based technology.
HiiROC's technology produces clean zero carbon dioxide emission hydrogen through a plasma process fuelled by natural gas or biogas, converting hydrocarbons into a clean hydrogen and solid carbon.
Under the commercialisation agreement, AFC will get global preferential rights to integrate HiiROC's plasma-based technology with the company's proprietary H-Power fuel cell, which is expected to lead to a GBP2 million initial reduction in hydrogen cost to AFC Energy
AFC will also be granted exclusive rights to HiiROC's technology in key regions, including the UK, Europe and Australia, in the field of electrified transportation, including electric vehicles.
As part of the agreement, AFC has agreed to invest GBP100,000 in HiiROC to develop a prototype zero emission power generation unit. In addition, AFC has also agreed to invest up to GBP300,000 worth of engineering, instrumentation, testing and associated support over 18 months.
The GBP100,000 investment will be paid via the issue of 526,316 ordinary AFC shares at 19 pence per share. AFC shares on Monday were down 0.3% at 18.95p each in London.
Adam Bond, chief executive at AFC, said: "HiiROC's innovative new technology platform not only has the potential to open up new green hydrogen sources but could do so whilst utilising existing natural gas distribution infrastructure, making access to hydrogen fuel more readily available and affordable in developed and urban areas.
"While we look forwards to the results of prototyping our H-PowerTM system with that of HiiROC, we are also aware of several blue ribbon partners developing project opportunities with HiiROC which may leverage new opportunities for AFC Energy to open new markets reaffirming the future role of hydrogen as a key element of the world's future energy mix."
By Tapan Panchal; tapanpanchal@alliancenews.com
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