AFC Energy makes notable business advancements in 2020

Summary

• Various commercial agreements at different developmental stages, growing across key markets
• Accomplished an oversubscribed fundraiser, largest in the company’s entire history

AFC Energy plc (LON:AFC), the company providing technologies for hydrogen power generation, recently released its operational statement for the year ending on 31 October 2020. One of its prominent highlights were that the company completed a fundraise worth £31.6 million that went oversubscribed. This depicted the confidence of investors in the business, said the company.

It was the company’s largest investment from retail and institutional investors. The fundraiser got completed in July 2020. It was expected to deliver the company’s major projects, scale up its manufacturing operations, and develop new hydrogen-power (H-Power) systems.

AFC also launched its Extreme E's all electric off-road 2021 series to charge racing vehicles fast in the month of October 2020. It would be featuring the above-mentioned H-Power system as the main source of power supply.

Additionally, the company signed an agreement with ACCIONA, an international constructor in April 2020 for 160-kilowatt H-Power field trials in Spain.

The hydrogen power specialist was happy to announce that it had to undertake nil job cuts due to Covid-19 pandemic and none of its employees was put on the government’s furlough scheme since March 2020.

In its operational statement, the group reported that it sold a 100 kilowatt fuel cell system to the Forschungszentrum Jülich, a Germany based research institute. The institute would be using the same for its Living Lab Energy Campus. Further, there was work in progress for delivering an assembly site for the company ahead of multi system orders.

The group mentioned that all its leading indicators would continue to provide growth momentum into the next financial year 2021 as well.

The group had launched H-Power electric vehicle charger in December 2019. It also delivered an industry presentation for AFC’s anion exchange membrane technology at Germany, mentioned the latest operational statement.

Adam Bond, the company’s chief executive stated that AFC’s balance sheet had never been stronger than in its latest update. The group had a technology that was roaring to hit the market with full force, he added.

Its products pipeline was more developed than before and there was a significant rise in the sustainable energy requirements, thereby boosting the hydrogen market as well, he insisted.

Hydrogen energy

Over the years, hydrogen has emerged as a crucial component of the clean energy mix required for attaining a sustainable global future.

Hydrogen can easily boost the growth of the renewable electricity market by expanding the reach of its solutions.

Mostly produced from fossil fuels, hydrogen is used in fuel cells for producing electricity. However, market experts point out that it can have much more uses in the times to come, as its cost of production goes down.

Extreme E rally championship

AFC Energy is working in association with Extreme E and other racing teams towards zero emission electric charging for all the race events that would be held across 5 locations across the world in the year 2021.

This will be an all-electric SUV rally championship and will also showcase a live webcast.

The purpose of the championship is to raise global awareness regarding climate change and environment protection, said the company.

Additionally, AFC is now working with various sporting partners for using its fuel cells to charge their rapid electric vehicles. The company’s H-Power systems have a wide range of commercial applications, it stressed.

Bond said that hydrogen shall be playing a critical role in achieving the sustainable energy targets of Extreme E’s first racing season for the year 2021. In fact, hydrogen has the potential to become a big enabler of sustainable electricity through off-grid power systems and industrial gas plants. 

The company had developed its alkaline fuel cell system that is scalable. Clean power is produced by fuel cells that use hydrogen. It would be used for supplying electric car charging and replacing diesel-based generators.

Also Read: AIM Listed Small Cap Renewable Energy Companies to Look At: EQT, AEG, AFC, and GOOD

AlkaMem Technology

On 1 October 2020, AFC Energy made a presentation on its proprietory AlkaMem technology for anion exchange membrane.

The presentation was delivered at the Fraunhofer Society in Germany which is an applied research organisation.

The technology was presented for usage across green hydrogen generation and alkaline water electrolysis. The European Union’s electrolysis market is likely to reach a value of 40 giga watts by the year 2030.

AFC Energy’s AlkaMem technology is already being delivered across many industries and educational institutions throughout the European continent.

The presentation dwelled upon the membrane performance update, user cases, and potential for scale up especially pertaining to the alkaline water electrolysis sector.

Stock performance

After the company announcement came on 3 November 2020, the company shares (LON:AFC) shot up to close at a value of GBX 17.30, up from GBX 17.00 on 2 November. The company’s market capitalization was recorded to be £116.95 million. Its year to date return was noted to be -8.22 per cent.

The company stock reached its 52-week high value on 18 February at GBX 33.50 points, after which it began to drop. After reaching a low of GBX 12.81 on 15 May, the stock prices rose gradually.

On 4 November at 10.25 AM, the company stock was trading at a value of GBX 17.50, up by 1.16 per cent from its previous day’s close.