AFC Energy Regulatory News (AFC)

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1 June 2020

AFC Energy plc

("AFC Energy" or "the Company")

ACCIONA and AFC Energy Announce H-PowerTM Field Trial for Construction Market

AFC Energy (AIM: AFC), a leading provider of hydrogen power generation technologies, is pleased to announce its collaboration with ACCIONA to field trial AFC Energy's H-PowerTM fuel cell platform as part of a strategy to decarbonise construction sites in Europe and elsewhere.

Highlights

· ACCIONA is one of the world's leading construction companies and a significant global energy company operating exclusively in the renewable energy sector.

· ACCIONA and AFC Energy agree to hold field tests of a containerised 160kW H-PowerTM fuel cell system at a Spanish construction site in early 2021.

· Agreement is part of a wider strategy of both companies to reduce emissions on construction sites.

· Both Hydrogen and Ammonia to be used to support comparative fuel evaluation within H-PowerTM system.

· Cost of project to be shared between the parties.

Decarbonisation of the construction sector is a critical objective for the delivery of a NET ZERO economy and is therefore a key market focus for AFC Energy's H-PowerTM fuel cell system. With an acute awareness emerging of the impact diesel generation from construction has on air quality post COVID-19, this objective is likely to be increasingly regulated and enforced by Governments.

As one of the world's leading construction companies with a multi-gigawatt portfolio of renewable energy investments across the world, ACCIONA, through its construction business line, has entered into an Agreement with AFC Energy to conduct field tests of a containerised 160kW H-PowerTM system at one of its Spanish construction sites. In addition to a containerised H-PowerTM fuel cell system, ACCIONA will be supplied with a Battery Energy Storage System (BESS) and ammonia cracker. The tests will take place in the first quarter of 2021 subject to changes in Government guidance on COVID-19.

As a leading innovator at the forefront of research and development in the construction market, ACCIONA uses the latest techniques working with partners to carry out projects, including the reduction of the environmental footprint of its construction sites through a transition away from on-site diesel generation.

Each company will contribute to the cost of conducting the field trial.

AFC Energy and ACCIONA will work together to validate the technical and economic viability of the H-PowerTM system as a basis upon which future collaborations will be premised.

A key selling point of AFC Energy's H-PowerTM platform is the capability to accept cracked ammonia as the primary fuel source. As a more energy dense fuel with lower logistics and handling costs versus Hydrogen in remote locations, adoption of ammonia could have a material impact on the fuel running costs of the fuel cell system. The project will evaluate both Hydrogen and Ammonia as its primary fuel so that an holistic evaluation may be made not only comparing alkaline fuel cell efficiency with comparable fuel cell technologies but also the safety, cost effectiveness and logistical supply chain of the two fuels compared to diesel fuel in off grid construction applications.

Adam Bond, Chief Executive Officer of AFC Energy, said, "The important transition from diesel to sustainable power generation at the construction site is a key target market for AFC Energy since the launch of our H-PowerTM system in late 2019. This billion-dollar global industry has seen growing regulation, such as Europe's Non Road Mobile Machinery regulations, come into force and with that, a movement by constructors and contractors towards a more sustainable on site power generation alternative to diesel".

"Our collaboration with ACCIONA, a leading global constructor committed to sustainable business methods, is a strong vote of confidence that alkaline fuel cells can play an important role in providing green energy on construction sites and help phase out existing diesel generator fleets. We thank ACCIONA for this landmark opportunity to demonstrate how our technology can meet the strategic, financial and environmental targets facing construction companies globally."

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About AFC Energy

AFC Energy plc is commercialising a scalable alkaline fuel cell system, to provide clean electricity for on and off grid applications. The technology, pioneered over the past twelve years in the UK, is now being deployed in electric vehicle chargers, off-grid decentralised power systems and industrial gas plants as part of a portfolio approach to the decarbonisation of local electricity needs.

About ACCIONA

ACCIONA is a global company with a business model based on sustainability. Its aim is to respond to society's main needs through the provision of renewable energy, infrastructure, water and services.  With a presence in more than 40 countries, it carries out its business activities based on the commitment to contribute to the economic and social development of the communities in which it operates. ACCIONA's goal is to lead the transition towards a low-carbon economy, equipping all its projects with quality criteria and innovation processes intended to optimise the efficient use of resources and respect for the environment.

The company has been carbon neutral since 2016, offsetting all CO2 emissions generated which it could not reduce.