The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
They have stated there were ABB sales discussions already underway to existing customers “e.g. high-volume logistics hubs”, separate to the ABB-AFC bespoke EV product launch later this year
Agree likely for Acciona. But maybe... as additional legacy ExE/Altaaqa have done a swap and new ExE fuel cell being sent for collection in Gibraltar on way to Senegal?! Leaving one in Saudi for kick start of distribution contract... just wishful thinking!
1 March results:
“ Today, AFC Energy is engaging with several of the world's leading constructors, diesel generator distributors and global electrification providers... and we are excited to start converting these opportunities into long term annuity revenue streams.
2 weeks after that we had MACE (constructors), 2 more weeks we got Altaaqa (DG distributors).
Who’s going to be the global electrification provider, or is that ABB? Either way they delivering on their word in short order right now.
Assume for II’s? This is 4 weeks today:
“In line with our commitment to maintain a regular dialogue with both existing and potential shareholders to communicate strategy and progress, we can also confirm that our next virtual Capital Markets event will be held on 5 May 2021. Presentations will begin at 2:00 p.m. and will end at 3:30 p.m.
To register your interest in the event, please contact FTI Consulting by no later than 5:00 p.m. on 23 April by email at afcenergy@fticonsulting.com or via (0203) 727 1000. A more detailed programme for the Capital Markets event will be sent to attendees closer to it.”
Blue day!
Agree Bananaman, AFC will still need control over accepting BoP for fuel cell stacks, commissioning etc. I used to think “regional” meant elsewhere in the UK but clearly not only! From the BK RNS:
“Under the Agreement, BK Gulf will not only provide investment in time and resources into the value engineering review, but also create a full turn-key solution for the balance of plant which AFC Energy will then assemble alongside fuel cell stacks, power conditioning and control systems.”
Future units not designed bespoke for ExE won’t need a month of testing so a much faster and more straightforward finish.
Investment in new facility RNS: “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.”
I’d say customer interest in the MENA region is now prominent! Perhaps where the DIT are working to assist? Will we see a further new AFC Middle East facility announced shortly?!
Also wondering how the BK Gulf value engineering is coming along?
That’s brilliant Fuelcellinvestor, thanks for sharing. The Department for International Trade have actually created a video about AFC, wow! I also noted the Department for Transport follow ExE on Twitter, hope they’re going to follow suit...
Julio, m3, thanks for the photos. Don’t understand why they would unpublish that once already (mistakenly?) made live, unless there’s more info/news imminent. If Altaaqa are already branding it up (even if photoshop) for sales/distribution purposes after the kudos of what takes place this weekend, well then crack on! It’s almost like the MOU and the exclusivity in KSA/MENA markets has been announced to ward off other parties who might have been pushing interest, but not a done deal (“non binding”) for orders quite just yet? Maybe after the weekend, hence 6 April date once proven indisputably?
No I missed the link before they took it down. Someone said it was dated ahead to 6 April though? Very intriguing!
Had to re-read everything again today, busy week, I was pretty happy just to see the fuel cell sitting slap bang in the middle of the paddock tents like some sort of clean energy throne in the desert. And then the Altaaqa news drops, this has in no way sunk in yet! Not sure what steps between MOU and contract orders but this really doesn’t sound too far away:
“Subject to contract and internal Board approvals, the reaching of an exclusive dealership agreement with Altaaqa...”
I like this para re. cost competitiveness of alkaline over PEM (p.23):
“Several construction companies have previously tried small PEM fuel cells with mixed results, predominantly due to higher operating costs due to the dependence on hydrogen rather than ammonia as a fuel; despite this experience, the willingness to try new technology to reduce emissions remains in place. Our partnership with ACCIONA provides a clear example of this; the publicity generated from our Dunsfold to Dundee roadshow resulted in the company contacting us to see whether our alkaline technology could provide a better solution compared to PEM technology. Initial desk top studies have confirmed that our fuel cell is more cost competitive than the existing PEM solutions and that our pricing and operating expenditure represents a fair and necessary premium if emissions targets are to be met.”
We saw recently the Plug Power deal with ACCIONA, but only for electrolyser and supply of hydrogen, not for the fuel cell... makes you wonder... bring on the results of all this, testing ammonia as well as (green?) hydrogen as a fuel and comparing to diesel economics
Very nice! Good bit of weekend reading to digest.
Quick observation: P.6 Looks to me like a photo of Top Gear crew filming the AFC hydrogen fuel cell filling up a car (based on car colour and pine tree forest from the TG trailer aired this week!)... we’ll see on Sunday I guess
I think it’s quite different when another global partner is saying it. And we’re talking c.9 months away now. Not forgetting a growing and pretty diverse news pipeline on other applications/orders that’s building up here now
Media release out today. Re-Tweeted by AFC and IT:
https://www.macegroup.com/media-centre/210319-mace-and-afc-energy
I like the sound of systems (plural):
“The partners aim to commission the first AFC Energy H-PowerTM systems on site in early 2022.“
Scarpa, there’s a brief summary here:
https://www.autoweek.com/news/a35842700/vw-power-day-battery-strategy/
VW will spend €400m building a charging network, working with partners including BP and Ionity. 18,000 chargers by 2025. I think ABB supply chargers to both BP and Ionity. Question is how many? And how many of these locations will be in AFC’s area i.e. off-grid or grid-constrained locations... even just a small % would be nice!
Really interesting read on hydrogen vs. BEVs in Europe on FT here (some great debate in the comments too):
https://www.ft.com/content/a1325d48-6c76-4b6f-81e8-2be504c21791
VW coming out very much against direct hydrogen power in FCEVs, over BEVs (which of course suits them), which reminded me of when we saw VW include AFC on their website (here if anyone missed that: https://www.volkswagen.at/d/324-auto-strasser/elektroauto/id-magazin/technologie/ladeinfrastruktur-ideen )
“ Work has already begun with ABB to integrate their chargepoints with our fuel cells to provide an off-grid solution where the grid is constrained (or absent), with the integrated product launch targeted for later this year. IMPORTANTLY, we are already in discussions with several of ABB's customers who have expressed interest in the system in locations where large power demand exists, such as high-volume logistics hubs, but where adequate grid connectivity does not.”
Any guesses on which logistics hubs... whilst we’re waiting?
Good to see Hydrogen Europe as co-signatories on this coalition, as the body behind the EU-funded Alkammonia project.
Yes, the last month has been frustrating but I’m expecting news on the majority of the following list below to come over the next ten months in 2021 (and not all in the second half). I agree with others that sales will drive this now but with the increased comms (plus there being actually substantive things to announce in the first place) I think we’re going to be getting a lot of SP growth. There’s also the left-field stuff too, the nice surprises! I certainly haven’t captured all but nor do I think this is rose-tinted:
1. An order off the back of ABB sales discussions already underway to existing customers “e.g. high-volume logistics hubs”
2. ABB-AFC bespoke EV product launch and coverage
3. ABB-AFC bespoke EV product subsequent sales order confirmations (“first-refusal” remember)
4. UK Government hydrogen economy support, maybe even directly
5. UK EV market (60p p/s value placed by Zeus on top of 131p for ABB to reach 191p)
6. New partnerships (plural) with “constructors”
7. New partnerships with “diesel genset distributors”
8. New partnerships with “global electrification providers”
9. Acciona partnership development (delivery, results, and so what next)
10. Ricardo partnership development (marine and rail) including any news on customer sales proposals already submitted
11. Jülich delivery
12. HydroX-Cell (S) full commercial prototype system launch (2021) and head-on competition with PEM - “a game changer for the hydrogen sector”!!!
13. AlkaMem test sample feedback and non-fuel cell commercial applications eg alkaline water electrolysis. Mass production commenced
14. ABB Formula E contract
15. E1 World Electric Powerboat series contract
16. ExtremeE 2022 contract
“The new Bank will offer a range of products, including equity, loans and guarantees, which can be tailored to support the needs of private sector infrastructure projects, in sectors such as renewable energy, carbon capture and storage and transportation.
“The Chancellor is also expected to commit a further £375 million to co-invest alongside the private sector in high-growth, innovative UK firms.
The ‘Future Fund: Breakthrough’ scheme will ensure the government continues to support highly innovative companies, such as those working in life sciences, quantum computing, or clean tech, that are aiming to raise at least £20 million of funding.”