AFC Energy Regulatory News (AFC)

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15 July 2020

AFC Energy PLC

("AFC Energy" or the "Company")

Extreme E and AFC Energy to Pioneer Zero Emission Vehicle Charging in World's First All Electric Championship Rally

AFC Energy (AIM: AFC), a leading provider of hydrogen power generation technologies, is pleased to confirm a collaboration with Extreme E to supply zero emission, hydrogen fueled, off-grid power to Extreme E's groundbreaking inaugural electric SUV racing series commencing in early 2021.

Highlights

· Extreme E, established by the same visionary team behind the ABB FIA Formula E Championship, is the world's first all-electric international rally series.

· The Championship will see teams racing in some of the remotest corners of the planet, in a bid to highlight the most important climate issues of our generation.

· Extreme E has selected AFC Energy Plc to provide a zero-emission charging system revolutionising how teams "fuel" their vehicles in some of the world's most extreme environments.

· The Company's H-PowerTM system will showcase to a global audience how Hydrogen can be used as a viable alternative to incumbent stationary diesel generation in all environments.

· AFC Energy is engineering for Extreme E a novel off-grid Green Hydrogen generation and storage system which will enable the Championship to produce its own self-certified green race fuel pre-race.

· Water produced as a by-product from H-PowerTM fuel cell system to be used on-site.

· Extreme E and AFC Energy have agreed marketing rights for the duration of the 2021 racing season with an expected global TV audience of 221 million people (Source: Extreme E).

· Extreme E Founder and CEO, Alejandro Agag, will today be announcing the collaboration with AFC Energy at Blackbook of Motorsport's Virtual Summit titled "Addressing Motorsports' New Horizon".

· Contract reflects an initial one year agreement with a down-payment payable upon order, and subsequent payments recognised when equipment is made available reflecting the unique nature of this showcase series.

Extreme E is a world class, off-road rally racing championship, taking 100% electric motorsport to a worldwide audience in some of the most extreme environments on the planet.

Founded by Alejandro Agag, original founder of the Formula E electric street racing series, Extreme E Season 1 will race across five formidable environments, including the Arctic, Amazon Rainforest and Sahara Desert (www.extreme-e.com). Race organisers and teams, including the high profile Andretti Autosport and Chip Ganassi Racing, aim to highlight the most important climate issues the world faces today and inspire people, companies, and locations to urgently respond to these challenges and mitigate risks brought on by climate change.

Essential to the aspirations of the Championship, Extreme E has partnered with AFC Energy to ensure the sustainable charging of race team vehicles for the duration of the inaugural 2021 season.

Commencing discussions in January 2020, AFC Energy has engineered a bespoke H-PowerTM fuel cell system for Extreme E which has been designed with a clear specification and focus on sustainable innovation. The two companies are designing a complete model for remote, hydrogen fuel generation and off-grid vehicle charging, highlighting use of AFC Energy's hydrogen fuel cell power generation technology.

AFC Energy's hydrogen power solution for Extreme E will showcase three primary innovative traits:

(i) zero emission power generation through use of the Company's proprietary alkaline hydrogen fuel cell;

(ii) remote manufacture of "Green Hydrogen" through micro-alkaline water electrolysis powered by the sun;

(iii) use of by-product water from the fuel cell system for on-site consumption.

The Hydrogen generation solution devised by AFC Energy will enable Extreme E to self-certify the green credentials of hydrogen fuel generated between races, removing the need to store and transport vast amounts of Hydrogen across the racing seasons.

The Hydrogen will fuel AFC Energy's H-PowerTM power generator, utilising the Company's proprietary alkaline fuel cell system, to generate zero emission power in excess of 2MWh per race event to charge Championship vehicles prior to and throughout the unique race format. AFC Energy will also supply a Battery Energy Storage System as part of its solution which will fully integrate with the H-PowerTM fuel cell system.

AFC Energy has obtained marketing and branding rights associated with the racing series, which are expected to be seen by a global audience throughout the 2021 Championship, and the events leading up to the series commencement. Alejandro Agag, Founder and CEO of Extreme E, said "This collaboration with AFC Energy is a game changer, not just for Extreme E, but also to the wider sports and events industry which could also benefit greatly from using this innovative, zero emission charging technology."

"AFC Energy is the leading provider of Alkaline Fuel Cell systems for the generation of clean energy. It has developed a wide range of technologies to enable sustainable off-grid power generation, which is easily transportable, offers high efficiency, and emits water, which we can utilise elsewhere on site, as its only by-product.

"In everything we do around this championship we are focussed on being sustainable and supporting the environment, whilst also being innovative. It is fantastic that Extreme E is leading the way in motorsport when it comes to sustainable solutions like this. Motorsport is often associated with a high detrimental footprint on the environment through event infrastructures, but we are trying to change that, and this collaboration with AFC Energy is a huge step in the right direction."

Adam Bond, Chief Executive Officer at AFC Energy, said "We are honoured to have been selected by Extreme E in such a world class motor racing championship, designed to highlight not only the true potential of electric vehicle SUVs in some of the harshest environments on Earth, but also the need to raise public awareness of the debilitating impact climate change is having on our ecosystems."

"AFC Energy's Hydrogen fuelled H-PowerTM system is designed to provide a viable, flexible, sustainable power generation alternative to the diesel generator, and our collaboration with Extreme E affords an important global platform to highlight that robust, innovative alternatives to diesel gensets exist in the market today and through the adoption of distributed Hydrogen generation, are available to support the decarbonisation of incumbent off-grid power systems. Extreme E's collaboration with AFC Energy further highlights the collective commitment both companies show to the environment and delivery of a sustainable worldwide racing championship."

For further information, please contact:

Extreme E Communications:Julia Fry, Communications Manager 

E: media@extreme-e.com / +44 7778 108754Carla Corbet, MPA Creative

E: carla.corbet@mpacreative.com / +44 7944 077440

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 deployable 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 Extreme E

Extreme E is a radical new concept in racing. The series brings electric racing to some of the most remote corners of the planet to highlight the climate change challenges faced by different ecosystems, whilst showcasing the performance of all-electric SUVs in extreme conditions. Extreme E is a competitive platform for accelerating the development of electric vehicles, to help create a low-carbon future powered by renewable energy. We are committed to supporting and partnering with organisations working to restore the degraded environments in which we race, the precious ecosystems within them and the people who live there. Marking a progressive step in motor racing, Extreme E will use its platform to promote gender equality with teams fielding both a male and female driver in its races.

www.extreme-e.com