AFC Energy Regulatory News (AFC)

AFC Energy plc (AIM: AFC) ("AFC Energy"), a leading provider of hydrogen powered generator technologies, is pleased to announce the signing of an exclusive distribution agreement (the "Agreement") with Saudi Arabia's The Machinery Group LLC, trading as TAMGO (www.tamgo.com).

TAMGO is an approved vendor to many of Saudi Arabia's mega and large scale infrastructure and mining projects including NEOM, Red Sea Global and Qiddiya. Under the Agreement, TAMGO will market and sell or lease to end-customers AFC Energy's zero emission hydrogen fueled H-Power Generators in the industrial and off-grid power markets in the Kingdom of Saudi Arabia and a further 16 countries in the MENA and surrounding region including, amongst others, the United Arab Emirates, Qatar, Oman, Kuwait and Kazakhstan.

With a rental power market valued at USD1.6bn in 2020, and projected to increase to USD3.2bn by the end of 2030[1], the Saudi and Middle Eastern markets are a key part of AFC Energy's growth strategy. 

TAMGO's exclusive dealership rights in the region incorporate AFC Energy's fuel cell technologies, including name plated generators ranging from 10kW to 200kW. TAMGO will provide local customer support with on the ground maintenance and servicing of H-Power Generators along with engineering, design, commissioning and logistics support direct to customers.

TAMGO is a group company of one of Saudi Arabia's leading multi-nationals, the Zahid Group. The Zahid Group represents international brands in the Construction Heavy Machinery, Commercial Vehicles, Energy, Water, Oil & Gas, Manufacturing and Facilities Management sectors in Saudi Arabia, in addition to actively participating in a further seven other sectors in Saudi Arabia, both regionally and internationally.

TAMGO currently represents international brands such as FG Wilson, Ingersoll Rand, Doosan Portable Power and Kubota with customers including Aramco and also Altaaqa Alternative Solutions ("Altaaqa"), another wholly owned Zahid Group company operating one of the world's largest mobile power modules rental fleets. 

The Agreement supercedes and builds on the initial Memorandum of Understanding signed between Altaaqa and AFC Energy in April 2021. 

AFC Energy, TAMGO and the Zahid Group have also agreed to assess investment in local Saudi manufacturing and scale up capabilities consistent with the "Saudi Made" https://saudimade.sa/en (MiS) certification programme. The MiS programme was launched in March 2021 by Saudi Crown Prince HRH Mohammed bin Salman in line with the Saudi Vision 2030, to encourage domestic production in the country. Zahid Group provides manufacturing capabilities to a portfolio of companies such as Volvo Trucks, Renault Trucks and UD Trucks with a joint venture delivering locally assembled trucks to the Saudi and surrounding markets.

Rami Elayan, Chief Executive, TAMGO, said:

"TAMGO is delighted to have been appointed as an exclusive distributor for AFC Energy. This milestone signifies a continued evolution of the collaboration initiated with AFC Energy back in 2021,and will enhance TAMGO's ability to provide environmentally-friendly electricity solutions to its customers. With this agreement, we are confident that our combined efforts will establish a prominent presence in the Saudi Arabian and broader regional markets for hydrogen fuel cell generators.

Zahid Group is fully aligned with the Kingdom's forward looking vision, and across all our Group's companies we are acting on that alignment with concrete actions."

Adam Bond, Chief Executive, AFC Energy, said: 

"We are delighted that TAMGO will represent our leading H-Power Generator platforms in the Saudi and neighbouring markets at a time when sustainable, temporary power is forecast to materially increase, consistent with national programmes such as Saudi Arabia's sustainability commitments under the Kingdom's Vision 2030. We have been collaborating with TAMGO and the Zahid Group for the past two years and believe this dealership agreement reflects our common vision to become the largest dealer of hydrogen fuel cell generators in the Saudi and MENA regions."

[1] Verified Market Research: Middle East, GCC and Saudi Arabia Power Rental Market Size By Equipment (Generators, Transformers), By Power Rating (Up to 50 KW, 51 KW - 500 KW), By End-User (Oil & Gas, Construction, Manufacturing), By Geographic Scope And Forecast; 2022