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Yes I agree.
It doesn't make sense.

Maybe it isn't a linear factor and they are using a different one for the longer times, so are now using 3ish.

Or, maybe running for 8 months was supposed to predict 4 years but they realised the electrodes were doing better (falling off more slowly) as time passed. So, they are running it for longer as they realise the predictive power of the accelerated test may be giving an underestimate of true longevity.

Notes this factor is puzzling.
What you say all seems very sound.
However I was told by someone who would know after the 2017 AGM that 1400 hours predicted a year, so a factor of 6.
On that day they RNSd that they were approaching 2000 hours of testing. During the presentation they mentioned that they had exceeded one year and were targeting two years. Again, this would equate to a factor of 6.

Perhaps they have changed the test and there are two factors in use.

Just noticed that an update on the website is anticipated in 'outlook'. Great news and long overdue. Sorry I had not noticed this. It will be necessary as part of selling products.

A chairman who is any asset to the company would be a further improvement!

Re testing electrodes:
Notes, I remember being told that for the accelerated electrode testing, 1400 hours or two months equated to prediction of one year longevity.
So, testing for 8 months (as at the AGM) should be the minimum to predict 4 years longevity.
It sounds like things have improved since the AGM when a '4 year test' was predicting 3.1 years commercial longevity.
I am not sure what 'continues to run' means.
a) Longer running of the same electrodes is giving a more accurate prediction and they are degrading less than expected as time passes, so moving closer to the 4 year prediction.
b) There are lots of electrodes on test and as more of them pass the '4 year test' point they are finding others which give better predicted longevity.

Either way, it sounds as if they are gradually getting further towards the 4 year point.

At the 2018 AGM it was suggested that longevity in the stack was markedly less than for the electrodes alone and I am not sure it they can have an accelerated test for this. We saw the video of hydrogen flow over the test plates, which looked as it it could still be improved quite a lot. We then got radio silence before announcement of the redesigned test plates. Hopefully this has also been improved.

All great progress from the interims!
Slowly but surely we seem to be reaching several products and with a sales team now kicking in hopefully not too long before we are able to sell them and get to contracts and revenues.
We should not underestimate how much work it has taken to get to this.
Well done to AFC!

So can we now expect the web site to be updated to reflect this and the products the sales team are trying to sell. Potential customers are likely to check the website to see what we have on offer. At the moment this is not reflected at all.

Notable absence seems to be a 'chairman's report'. Isn't it normal for this to be included in reporting? Is John Rennocks no longer bothering to do the job he is paid for at all.

Aim rules on posting interim results..

'All such reports must be notified without delay and in any event not later than
three months after the end of the relevant period. '

So due by the end of July. Were during July last year, but may find that in the hands of current chairman they go up to the wire again.

They seem to be describing generators of quite small scale running on bottled industrial grade hydrogen without the ammonia cracker which is a big plus for the AFC system. As Bumble B says, no examples in the real world yet, or comments on price.

Sounds like AFC have far more and better technology than this, but why oh why are they so failing to promote what they have!

Interesting find reonin.
They look like a team with formidable expertise and appear to have a good product.
Seems their advances in technology are in the printed circuit board and from my brief reading I couldn't glean much about the fuel cell itself.

Certainly they have the sort of web site AFC should be aspiring to. If they have this without a product for sale yet that is impressive marketing and certainly stealing a march on AFC on that score. AFC should certainly be taking tips from them.

Great news about the EV charger. Things have moved along if this will be the finished 'forecourt' product with card payment facility etc incorporated.

Another fundraise at these shareprices is shameful when they have not done the minimum of PR like having an up to date website and the 'prospectus' was likely the printed rag of accounts from the AGM. Giving away the company at rock bottom prices looks like another failure of duty of care to me.

My thoughts (may be wrong):

They tried to submit accounts but the auditor sent them back saying they did not have one year of funds available to be audited as a going concern.
It was then all done in a rush.
They raised money (dilution of £800,000ish at 3p was a travesty) and the bond/loan gives the company a potential debt for the first time ever.
This was due to the low share price, in my view at least in part as a consequence of the 'no news' policy.
They then reported unaudited accounts too late for shareholder deadline for voting on whether to accept them.
They got the accounts back through the auditors and submitted them as a going concern at the last minute.
There was not time to print a glossy brochure, so the black and white rag came out.
This is used as advertising for the year and was shocking.

If this was the case and as I said, I may be wrong:
1) In my view the 'no news' policy did practical damage to the company and the person responsible for it was in breach of responsibility of duty of care to the company and to shareholders.
2) Perhaps someone was asleep at the wheel in terms of reporting responsibilities. I would be horrified to think that 'no news' was just an excuse for laziness and incompetence.

I may well be wrong. If we had been better informed these possibly erronous suspicions would not have arisen.

As Notes mentioned recently the AFC website does urgently need an update.
Still could find no mention of Australia, the EV charger, ammonia cracker, alkammonia update other than in RNS news section. Now very sorely out of date and as the AFC shop window is shocking.

Since AGM I am very pleased to see social media output including from TUVA, this is needed for an AIM company just to show they are still alive. Happy that AFC listened, so thank you.

From AGM we heard 'I agree' the website is out of date and should be more customer rather than investor oriented. Also that there was a meeting the Friday after the AGM for discussion.
It does take time to develop a new website, so hopefully this is all in hand and the new one is imminent.

I agree, well done to AFC for improving communication, thank you so much for listening!
Looks like the benefits of this are showing in the share price and MCap.
The future of AFC is all looking so much brighter!

Yes, rapid charge at £6.50 for 30 kwh is around 21p per kwh.
That makes more sense.
Also, if the AFC unit is aimed at off grid locations the price per kwh may be higher.
Prices seem to be very variable, from free at workplaces and some supermarkets where you shop while you charge, to very high where you have no other option on a longer journey.

Hello Sturmtrupper,

If the price per kwh is 2.1-3p that makes it the cheapest electricity in the world!
Even cheap chlor-alkali contacts are in the 4-6p per kwh range and my domestic electricity is far above this.
Is this price in kw different from the kwh unit, or is it heavily subsidised for some reason?

If they bought shares, then news came out which could leave them accused of insider dealing and witholding price sensitive information until the ink was dry on the contract that would look bad.
I can see why no one would want to be accused of that.

BumbleB,

I agree that a sole trader Uk builder will want their personal use generator to be mobile and size/weight will be an issue.

However a lot of diesel backup power is static and cost is a factor.
If you have an ice cream company (business depends on freezers) or a hospital in Africa and your grid power supply is unreliable, you are looking for backup generation which is static and cheap.

They say they are ready to supply generator backup for Dunsfold when it starts, which I assume could be in a container for the site with cables to where the power is needed.

I don't think we do need to wait for the smaller high power unit for this application.

I loved this bit - not be a totally verbatim quote.

More condusive to new updates?
A topical point (smirk)..
Now at a point where a greater level of communication makes sense. Certainly that's the very clear message from the shareholders and we are starting on a journey of communication and updates that will support the direction of the business.

Thank you AFC. Am struggling with tears of joy.
Well done the shareholders.

Yes Beachandsurf

1) I think we are commercial for some things now and this is the beauty of the new products and business model
They will be coy about their costs as this is not something they want to be very clear to customers/competitors.

2) From the graph of longevity/price per KWH present at the last two AGMs, If you look at a line of around 3 year stack life and probably around one third to half way down on manufacturing cost, I guestimate that we are now probably healthily below 10c per KWH on cost without hydrogen.

3) We could probably sell electricity to a large chlor-alkali company and compete with their current perhaps 4-6c per KWH electricity and would make a substantial loss.

For EV charging, there was mention of being able to sell electricity at 40c per KWH. There will be extra costs of the extra kit, but they are talking about business opportunities needing to have 20% margins and this one makes the grade.

For diesel generation I have seen costs per KWH of up to close to $1 in some isolated places. This will vary a lot depending on the location/situation, but this sounds like a market where the 20% margins will work. I looked a little at costs in Africa where there is grid electricity but it is not reliable, so there is massive diesel backup use for anyone needing reliable supply (eg if they have a fridge). Costs per KWH for this electricity is high.

Not a current discussion, but anywhere they could supply electricity plus valuable water could be somewhere they could make the 20% margin.

4) The new business model and the products to target these niches seems elegant and beautifully conceived to me.

The low hanging fruit was never an ESCO model for the chlor-alkali industry. It was always the places where you can sell electricity for a premium price and make a profit. This is a series of well researched and elegant solutions.

On another note, the '1 Gw of installation ESCO to the chlor-alkali industry' would probably have needed billions of pounds of funding to supply the kit. How AFC could raise that kind of money when their Mcap is now around 12 million was always a bit of a flawed plan.

From the AGM, cash in the bank and the recent £800,000 fund raised gives the maybe £2 million of cash before they need to start draw down from Thalion.
So I think it will be a while before that starts.

The people running TUVA did seem to have an impressive history.
I got the impression from the AGM that they were not being allowed to do any PR under the current information sharing policy.
There is a meeting tomorrow around communication/PR. Not sure exactly of the content description.
Could be that TUVA are able to do a good job, just have not shown what they can do yet.

This is great news.
They said the was to be an AFC meeting this Friday to discuss website/PR type issues.
I hope it is a meeting of long knives and the 'no news' policy is slayed.
I hope AB doing an interview this Friday is a hint that information flow is now to improve.
I hope I am not just reading far too much into one interview announcement LOL.