AFC Energy Regulatory News (AFC)

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6 March 2017

AFC Energy PLC

("AFC Energy" or the "Company")

Delivery of First Commercial Order for Small Scale Fuel Cell System from PowerHouse Energy

AFC Energy (AIM: AFC), the industrial fuel cell power company, wishes to announce it has received confirmation from PowerHouse Energy plc ("PowerHouse") of the Company's first commercial sale of a small-scale alkaline hydrogen fuel cell system. In accordance with the order from PowerHouse, AFC Energy will deliver the system once all parties are satisfied and it is confirmed that the PowerHouse G3-UHt Ultra-high temperature waste gasification system has been successfully recommissioned and is generating a hydrogen stream specification appropriate for the operation of the AFC Energy proprietary fuel cell system.

The confirmation of order is made in accordance with the agreement between AFC Energy and PowerHouse announced to the market on 4 April 2014 for a small scale (then Beta scale) fuel cell system. Subject to the successful recommissioning of the G3-UHt unit, the system is expected to be delivered to the Thornton Science Park in Chester in the fourth quarter of 2017 with the intention of demonstrating the technical integration of the AFC Energy fuel cell system with PowerHouse's G3-UHt system, which is presently en-route from Australia to the UK. AFC Energy will be able to access test data from the integrated system as it relates to the fuel cell once commissioned on an on-going basis.

If successfully demonstrated at the Thornton Science Park in Chester, PowerHouse's modular and distributed power generation from waste technology has the ability to be rolled out across a number of additional locations in the UK and internationally.

Adam Bond, AFC Energy's Chief Executive Officer, said: "Powerhouse Energy's order confirmation today for its first small scale fuel cell system builds on a number of significant opportunities AFC Energy is developing internationally for its fuel cell systems. It further evidences the growing number of opportunities for AFC Energy right here in the UK where growth in and momentum behind the hydrogen economy is becoming increasingly real".

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About AFC Energy

AFC Energy plc has developed and successfully demonstrated an alkaline fuel cell system, which converts hydrogen into "clean" electricity. AFC Energy's key project POWER-UP demonstrated the world's largest operational alkaline fuel cell system at Air Products' industrial gas plant in Stade, Germany in January 2016. The Company is now looking to build upon an already established pipeline of commercial opportunities and drive the findings from the development phase of the technology into a technically optimised and commercially relevant fuel cell system. For further information, please visit our website: ww.afcenergy.com