We have the opportunity for clear first mover advantage in the EV charging market in particular and through the much-appreciated efforts of our employees and partners, look forwards to delivering on our commitments to support the UK's and international efforts towards a net zero society
Adam Bond, chief executive
How it is doing
AFC's hydrogen fuel cells will have a low cost per kilowatt hour (kWh) compared to alternative generating systems, partially as a result of its ability to use lower quality and less expensive hydrogen sources.
Trials have shown that AFC's proprietary fuel cell system can use "off the shelf" ammonia cracking technology, with little difference in performance compared to hydrogen sourced from industrial plants.
The company is also working with various leading clean-tech specialists to build on existing commercial activities and establish alternative distribution channels to accelerate future growth.
In December, the company launched a zero-emission H-Power electric vehicle (EV) charging system, based on its scalable alkaline fuel cells, as well as unveiling a ‘blue-ribbon’ partnership with the British Motor Show 2020 to become the event's its official EV charging partner.
This was followed in January by the signing of a commercialisation agreement with green tech firm HiiROC to produce zero-emission hydrogen fuel from natural gas.
Since then, the company in February began a hydrogen-fueled “roadshow” to highlight the benefits and capability of its new zero-emission H-Power electric vehicle charger.
In its full-year results, also delivered in February, the company reported some £1.8mln of research and development spending, qualifying for R&D tax credits, and, narrowed its operating loss to £3.6mln down from £5mln.
The company collected some £1.3mln of tax credits during the year, allowing the development of a demo fuel cell system from internal resources.
It ended December with £1.3mln of cash and boasted continuing tight control on spending.
AFC raised £1.8mln of new capital in 2019, via two small equity raises, and in the current year raised a further £2.5mln.
AFC is one of the UK market leaders in what is becoming known as the hydrogen revolution, the development of technology that can transform hydrogen into a renewable energy source.
According to the Hydrogen Council, an industry group backed by companies such as BMW and Air Liquide, the hydrogen market could be worth around US$2.5trln by 2050 as part of a push to lower carbon emissions from transport and limit global warming to safer levels.
Hydrogen is seen as a key element of the UK government's recent announcement of a new target for the country to achieve net-zero carbon emissions by 2050, which was on the back of a strongly worded report from the Committee on Climate Change (CCC).
With the electricity grid often at full stretch and the CCC estimating that all new cars and vans should be electric within 16 years, “there is no way the grid can cope with that amount of extra demand”, says Adam Bond, AFC's chief executive.
“Hydrogen is the only solution to meet the demand,” Bond said, “and that is why the climate change report mentioned it on almost every page.”
In November, AFC Energy unveiled four new brands as its inaugural product line of hydrogen power technologies.
HydroX-Cell(L) is a zero-emission, high efficiency and low-cost alkaline fuel cell utilising a liquid electrolyte configured in 10 kilowatts (kW) modules, to be used in large scale industrial applications utilising lower grades of hydrogen.
A similar fuel cell, HydroX-Cell(S), is also due to be marketed, although unlike the (L) model it is a high current density alkaline fuel cell and can be used in both mobile and stationary applications.
The third brand, H-Power, is a group of hydrogen power systems including an off-grid electric vehicle (EV) charger, while the fourth product, AlkaMem, is a range of anionic exchange polymer membranes, used to separate fuel reactants between two electrodes inside the cell.
AFC believes its HydroX-Cell(S) fuel cell can “compete favourably” with alternate proton exchange membrane (PEM) technologies in the market.
There has also been early interest in the AlkaMem membrane technology following tests by one of the world’s largest electrolyser manufacturers.
In March, AFC appointed Tom Pollard, an experienced electric vehicle (EV) charge point executive in the UK, as its national EV sales manager.
What the boss says: Adam Bond, chief executive
“With the successes and achievements delivered by AFC Energy over these same twelve months, we are well positioned to capitalise on this growth market, particularly in support of the transition away from diesel engines in both motive and stationary applications towards clean hydrogen-based alternatives".
“The next twelve months will see a concerted effort focussed on the sale and deployment of fuel cell systems into these key markets alongside growth in resources to deliver scaled up manufacturing capacity and also sales and commercial coverage of our key targets".
“We have the opportunity for clear first mover advantage in the EV charging market in particular and through the much-appreciated efforts of our employees and partners, look forwards to delivering on our commitments to support the UK's and international efforts towards a net zero society."
- HydroX (S) cells can compete favourably with existing fuel cell technologies believes AFC
- Systems can use low-grade hydrogen, which makes them cheaper and more efficient
- The market for Alkamem, which was "encouraged" by early market interest, is worth US$1bn a year