Last checked at 17 Dec 2012 07:00
Embargoed until 07:00
17th December 2012
AFC Energy plc
("AFC Energy" or the "Company")
AFC announces further EU funding and the acquisition of assets from Diverse Energy
AFC Energy (AIM: AFC), the industrial fuel cell power company, is pleased to announce that it has received notification that it has been awarded a European Union grant of up to Euro 1.96 million (£1.53 million) for the launch of its Alkammonia project to develop ammonia fed alkaline fuel cell systems.
The EU grant is being funded by the Fuel Cells and Hydrogen Joint Undertaking (FCH-JU), through the EU's Seventh Framework Programme (FP7). It will provide AFC Energy and their European project partners with three years' financial support for the development of ammonia fed alkaline fuel cells. The grant, which is subject to final negotiation and agreement, is expected to be in place to enable the project to commence from March 2013. If negotiations with FCH-JU conclude satisfactorily, AFC Energy will coordinate the project and expects its direct share of the project funding to be up to Euro 0.64 million (£0.52 million) with the balance to be received by the other project partners.
The key to the wide deployment of AFC Energy's systems will be their ability to be used with many different energy feedstocks. Ammonia is one key feedstock. It has a high energy density and can be very easily converted to hydrogen (which powers AFC Energy's fuel cells) by heating it in the presence of a catalyst - a process known as "cracking". AFC Energy's alkaline fuel cell system enables the efficient use of the hydrogen liberated by cracking, giving it the potential to be more economic than other fuel cell types.
AFC Energy's alkaline fuel cells also have the advantage of being able to tolerate ammonia traces in the fuel stream - this has recently been confirmed by AFC Energy's own laboratory-based trials. These tests confirm that power systems derived from the integration of ammonia with alkaline fuel cells do not require an expensive clean up process. Ammonia fed alkaline fuel cell systems are also far more efficient than known current diesel alternatives and the only emissions from this process are water and nitrogen. Ammonia fuelled systems are suited for both industrial and small scale back-up and off-grid power solutions.
Diverse Energy
In addition to the EU grant the Company is also pleased to announce the acquisition of certain assets, including equipment and intellectual property, of Diverse Energy Ltd ("Diverse Energy").
Diverse Energy gained a track record in being able to deliver small scale ammonia fed fuel cell systems into the mobile phone mast power market, specifically within Africa. AFC Energy expects to use the equipment, knowledge and systems understanding developed by Diverse Energy to accelerate its speed to market for ammonia fed systems.
Commenting, Ian Williamson, CEO, said: "We are delighted to add Diverse Energy's proven and patented technology, knowhow and equipment to our own. This deal, combined with the EU grant for ourAlkammonia project,will help AFC Energy exploit an exciting market opportunity faster than would previously have been possible. These developments will extend our technology portfolio, expand our product offering and help to broaden our addressable market. We believe the ammonia tolerance we have will put our fuel cell system in a very favourable position to be more commercial using this feedstock than its competitors."
Ends
For further information, please contact:
AFC Energy plc Ian Williamson, Chief Executive Ian Balchin, Deputy Chairman
| +44 (0)1483 276726
|
Luther Pendragon - Public Relations Adviser Neil Thapar Alexis Gore Dan Wilson Craw
| +44 (0)20 7618 9100
|
Peat & Co. - Corporate Broker Charlie Peat
| +44 (0)20 7104 2334
|
Allenby Capital - Nominated Adviser Jeremy Porter James Reeve
| +44 (0)20 3328 5656
|
About AFC Energy
Founded in 2006, AFC Energy plc is re-engineering proven alkaline fuel cell technology to reduce the cost of electricity. Alkaline fuel cells have been used on US and Russian manned space missions for decades to provide electrical power and drinking water. By using modern materials, design tools and manufacturing processes at scale, AFC Energy is developing fuel cells that will compete with conventional technologies such as turbines for electrical power generation. Today, AFC Energy is pursuing opportunities in several sectors where hydrogen is readily available including the chlorine, clean coal and waste-to-energy industries as well as applications for distributed/back-up power. For further information, please visit our website: www.afcenergy.com.