- AFC Energy
- 03 May 2024 17:19:08
Source: Sharecast
The AIM-traded firm said the acquisition’s financial terms were not being disclosed.
It said the assets would be a significant addition to its capabilities, enabling the immediate logistics support for hydrogen fuel supply to its expanding fleet of H-Power Generator sets across the UK.
The acquisition aligned with AFC’s strategy to establish a locally distributed hydrogen supply logistics network, facilitating the deployment of H-Power Generators throughout the UK.
By investing in ammonia cracking and now hydrogen storage and logistics assets, AFC said it could offer a distinct fueling solution to customers and partners, aiding the industry’s transition to zero-emission off-grid power.
The acquired Octopus assets were described as adaptable and capable of accepting hydrogen from various sources, including third-party electrolysers in the UK and Europe and AFC’s ammonia crackers.
That flexibility would allow AFC to provide end-to-end hydrogen fueling solutions for a fee.
The assets encompass two 350-bar 420-kilogram NanoSun Pioneer mobile hydrogen refuelling stations, two mobile trailers for transporting the Pioneer refuelling stations, and one hydrogen compressor for Pioneer refilling.
Each NanoSun Pioneer can support the fueling requirements of a fleet of H-Power Generators operating at full load.
The board said the newly-acquired assets would support Speedy Hydrogen Solutions - a joint venture between AFC Energy and Speedy Hire in the UK and Ireland.
While AFC Energy said its primary focus remained on hydrogen power generation, acquiring the storage and distribution assets positioned it to support the maturation of the hydrogen power generator market.
Additionally, it offered an opportunity to generate incremental revenue by providing hydrogen fuel logistics services to customers in the UK and Ireland, albeit without the intention of becoming a capital-intensive hydrogen logistics provider.
“We are pleased to announce AFC Energy’s first investment into the distribution and storage of hydrogen to support and complement our UK off-grid power business,” said chief executive officer Adam Bond.
“Complemented by our hydrogen generation capability through ammonia cracking and methanol reforming, the logistics of distributing hydrogen is the next stage in our ambition to commercially demonstrate the viability of hydrogen as a displacement to diesel in off-grid power environments.”
At 1151 GMT, shares in AFC Energy were up 9.21% at 15.97p.
Reporting by Josh White for Sharecast.com.