AFC Energy Regulatory News (AFC)

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9 April 2019

AFC Energy PLC

("AFC Energy" or the "Company")

AFC Energy Announces High-Power Density Alkaline Fuel Cell

AFC Energy (AIM: AFC), the leading alkaline fuel-cell power company, is pleased to confirm details of its new high-power density alkaline fuel cell technology. The new technology has potential use in applications where space and weight of power generation are important considerations and will sit alongside and complement its existing large-scale stationary fuel cell system.

The new alkaline fuel cell platform has been developed over the past 18 months, with patents filed, and incorporates a solid anion exchange membrane which enables:

· quicker response times

· far greater power density facilitating reduced system weight

· smaller volume and footprint whilst still maintaining high efficiency

· ability to accept lower grade hydrogen fuel sources as evidenced across AFC Energy's existing alkaline fuel cell platform

This fuel cell system will open up new markets for AFC Energy where high-power density and reduced weight, volume and footprint is beneficial to customers' needs. The technology will also be able to integrate into AFC Energy's Electric Vehicle recharging and e-mobility solutions where several commercial enquiries have been received since its announcement in January 2019, as well as supporting smaller scale off-grid power generation and system backup.

AFC Energy has developed a large portfolio of know how around the new system, much of which has the potential to be transferable to other applications such as alkaline water electrolysis. Initial testing has been completed using the anion exchange membrane in non-core fields and discussions are underway with potential partners to jointly commercialise elements of the technology in applications unrelated to fuel cells.

This system will undergo prototype development, which if successful will lead to scale up over the course of the next 12 months. Similar to the existing alkaline fuel cell platform, each fuel cell module is expected to be sized at 10kWe output. The final sizing of the overall fuel cell unit can then be set based upon the space / weight / footprint considerations required for the envisaged application and customer.

Adam Bond, Chief Executive Officer at AFC Energy, said: "At AFC Energy, we now have a fuel cell platform capable of delivering performance only previously seen in other membrane-based fuel cell technologies, and at lower operating temperatures. This is a major step forward in the alkaline fuel cell sector where AFC Energy continues to be at the cutting edge. The ability to license parts of this technology to non-core applications would also give rise to an additional revenue stream potential without compromising existing fuel cell market potential."

Further background will be provided at the Company's Annual General Meeting in April 2019.

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 ten years in the UK, is in the process of being deployed in industrial gas plants for grid generation, as an alternative to diesel generators for localised power, in energy storage systems and as the power source for local electricity needs.