AFC Energy Regulatory News (AFC)

26 March 2015

AFC Energy PLC

("AFC" or the "Company")

AFC Receives First Partial Building Permit to Commence Construction at Stade, Germany

AFC Energy plc (AFC.L), the industrial fuel cell power company, is pleased to announce that it has received its first Partial Building Permit from the Stade permitting authorities in Germany to commence construction of what will be the world's largest industrial alkaline fuel cell facility.

Over the past few months, the permitting review and approval process has consisted of a rigorous examination of the technical specifications of the plant's design and is the first time a regulatory authority has been asked to objectively review and consider AFC's plant design for industrial application.

The first partial building permit has afforded approvals to AFC's:

· Civil engineering drawings

· Plant specifications and process description of operations

· Building structural load calculations and geotechnical survey results

· Landowner approvals

· Approvals of other relevant state of Saxony departments on submitted documents, in addition to the Stade building planning authorities

This permit allows AFC to proceed with:

· Foundation works

· Piled foundation works

· Reinforced steel concrete base plate

· Support work for the above

AFC will also be proceeding at this stage with the plant cable and hardware connections to the medium voltage power grid, as well as connecting to local water and telephone networks.

The consenting process for the AFC fuel cell plant in Stade occurs across several phases with multiple phase permits issued for construction, operating and dispatch of power into the German grid. AFC is continuing work on progressing each of these permits over the coming weeks.

The commencement of construction works at Stade is expected to commence next week which will affirm delivery of the fifth key milestone in the 2015 POWER-UP programme (as articulated in AFC's RNS of 8 December 2014) and therefore, reaffirms AFC's ongoing confidence in the deliverability of the fast track execution timetable for the 240kW KORE fuel cell system scheduled for the second half of 2015.

Adam Bond, AFC's Chief Executive Officer, said: "We are grateful for the close collaboration AFC has had with the consenting agencies in Stade and hope this constructive and professional relationship continues as we both look to deliver a world class fuel cell facility into the region."

Bond added: "Demonstrating the importance AFC places on local community and stakeholder relations, we have welcomed the opportunity to participate in a public awareness consultation with local residents, through a community advisory panel, where the response has been very positive with no objections logged to AFC's proposed investment into the region".

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About AFC Energy

AFC Energy plc is fast approaching commercialisation for its proven low-cost alkaline fuel cell system ("KORE"), which converts hydrogen into 'clean' electricity. AFC's key project POWER-UP will demonstrate the world's largest alkaline fuel cell system at Air Products' industrial gas plant in Stade, Germany. The date for the demonstration of the 240kW KORE system has been fast tracked to December 2015, representing the final phase of AFC's pre-commercialisation technical development programme and creating the platform for the Company's global commercial fuel cell deployment. For further information, please visit our website: www.afcenergy.com