http://www.afcenergy.com/

Dawnay, Day Corporate Broking Research Note

Aim Admission Document

A couple of articles worth reading

AFC Energy boss says "keep the faith"
By Harriet Mann | Fri, 11th September 2015 - 10:45

AFC Energy boss says "keep the faith" After its meteoric re-rating earlier this year, AFC (AFC) has gone from bombed-out AIM reject to a stockmarket darling. The alkaline fuel cell company has turned the technology used in space missions into a commercial power supply after unveiling a new, accelerated timeline at the end of last year. With the technology under its belt and its pipeline beefing up, it's no surprise the shares surged by as much as 771% this year.
But the group hasn't been immune to global market weakness, although boss Adam Bond assures investors that the firm has little exposure to China. AFC's shares have had a rough ride over the last couple of weeks, losing 44% of their value from July-highs at over 60p, no doubt some of that due to profit-taking. They're down 30% in the past ten days.

"The share price has been hit quite hard over the last couple of days for reasons we don't really know," chief executive Adam Bond told Interactive Investor. "I think the market was wondering whether there was something going on they didn't know about. All is still on plan; there is no reason for this fall that we are aware of. Keep the faith."

Since we first met with the newly appointed CEO last December, Bond has been pushing AFC to achieve each of its 11 milestones, introduced to accelerate the firm to commercial production. Targeting 1 gigawatt (GW) of capacity by 2020, the group is on track to have its 240 kilowatt (kW) German Power Up producing by the year end. It's also signed three commercial deals in Korea, Thailand and Dubai before the half year, for 50 megawatt (MW), 10MW and 300MW plants respectively.

"We remain confident that the scope of the company's pipeline, being an expected 1GW of capacity under development or in operation by the end of 2020 will be delivered and indeed, most likely exceeded," said the company.

Bond has kept his foot on the gas, and it's paid off. AFC signed its first commercial power purchase agreement with the local utility company Stadtwerke Stade at the end of July and its first KORE fuel cell system achieved operation in Germany.

"The intention is not to drive a profit [from its Stadtwerke PPA], the intention is not to make millions of dollars," explains Bond. "In ter=ms of revenue we are probably looking at tens of thousands of euros per annum, so this is not going to move the share price and it is not designed to. Given that we are producing power, we might as well sell it and generate some revenue. But operating a fuel cell gives us the opportunity to learn how to operate a fuel cell in a commercial power market."

With his eyes set firmly on the final two milestones, AFC reckons it will have sold its first power to the grid within the next month, with its 240kW KORE plant operating at full capacity by the year end. Of its targeted 1GW capacity, the group also has its 360MW pipeline and Bond has bought a new commercial director on board to transition these agreements into binding contracts.

"We don't want to go down the path of having a gigawatt of memorandum of understandings (MoUs) and have not delivered anything. It becomes one of the typical AIM tricks where you pump the share price but don't deliver anything. I don't think that adds any value to us, so it's getting that balance between delivery and pipeline development."

Still, the boss is confident AFC will be profitable by the end of the 2016 financial year, although he notes that as the number of opportunities grow, so will its cost base. The group received monthly derivative swap payments from Lanstead Capital, which the group will continue to receive for another eight months, and has £3 million cash in the bank. To expand, it will need more money, and there a number of options AFC is considering, including strategic partnerships, licence agreements or, of course, coming to the market.

While it wants to keep its intellectual property under wraps, the group is in talks with manufacturers to outsource some of the building process. Bond doesn't want to rush the decision, but hopes an agreement will be made by the end of the year.

"We are being very aggressive in our go to market strategy. We are creating timelines that are very tight, but we are delivering against all of them at the moment. When you set timelines you create expectations and the challenges then become how to deliver against that timeline. We are working bloody hard to hit all of our milestones, and so far so good."
------------------

10 September 2015 - AFC Energy PLC
Progress Update

Highlights
· AFC remains on target to deliver on each of its two final Milestone's at Stade, namely Milestones 10 and 11, in accordance with earlier timeframes
· The Company continues to develop its commercial pipeline of opportunities with its current and prospective partners internationally

AFC Energy plc (AFC.L), the industrial fuel cell power company, is pleased to announce the following progress update. AFC can confirm that at this time, following the successful commissioning of the KORE system in Stade, Germany on 31 July 2015 and the associated power output achieved at the time of commissioning, it remains on target to achieve Milestones 10 and 11 of the 11 Milestone programme announced to the market on 8 December 2014. These Milestones, including the generation and sale of power into the German electricity grid, and for the first time, generation of the full nameplate capacity of the KORE system (240kW), are expected to be achieved in accordance with earlier announced timeframes in 2015. The Company's staff and subcontractors are currently on site in Stade finalising works necessary to deliver Milestone 10 and at this time, there is no reason to suspect this will not be achieved within the announced timeframe.

The Company also wishes to confirm that it continues to make progress in the development of its fuel cell catalyst and at this time, has seen further recent improvements in the power output generated from the cells as compared with that currently being trialled in Stade; this provides further confidence that the AFC fuel cell will be in a position to achieve its targeted capacity output of the KORE by the end of 2015.

Furthermore, ongoing dialogue is occurring with existing and prospective commercial partners and at present, we hope to be able to make further updates to the market on the progress across these opportunities over the coming months. We remain confident that the scope of the Company's pipeline, being an expected 1GW of capacity under development or in operation by the end of 2020 will be delivered and indeed, most likely exceeded.

Mr Adam Bond, AFC's Chief Executive Officer, said: "At this time, we wish to reassure shareholders that AFC remains on target to deliver on its key milestones announced in December 2014. We will provide further updates to the market on the KORE system at Stade and other commercial developments in the near future."

Dear Shareholders,
The past few months have witnessed some rather turbulent times for the world's stock and commodities markets but we at AFC continue to focus our efforts towards progressing our aggressive commercialisation strategy.

Our RNS released today reported that Yady Worldwide ("Yady"), a company wholly owned by the family of AFC's founder, has increased its holding in AFC by 7.04% with the acquisition of all the shares held by former shareholder, Linc Energy, for an undisclosed amount. Yady described the transaction as: "a rare opportunity to increase Yady's position in the Company at a time when we believe the future value of the Company is undervalued by the market". This transaction should remove any concern in the market of an overhang due to the potential divestment of Linc Energy's position. I am delighted that the family of AFC's founding shareholder has reaffirmed their confidence in AFC and the direction it is taking in accelerating the company towards commercialisation and achieving the goal so many long-term holders have aspired to for many years.

Again, I wish to acknowledge Linc Energy's support of AFC during the past few years which saw substantial investments into the company at various times over recent years in support of the technology's development lifecycle.

From a technical standpoint, the POWER-UP project remains our key focus, alongside further developments and advancement in the fuel cell performance itself.

Over the past three months, many of you will have seen the announcement in early August 2015 that we had successfully commissioned and commenced operations of the first KORE fuel cell system in Stade, Germany. In what I called one of the proudest days for AFC, the AFC team achieved a peak output of 7.56kW from a single operational fuel cell cartridge. Back in December 2014, we committed to reaching this milestone by the end of July, and whilst there were a few delays on the permitting of the facility, which delayed our commencement of construction by a couple of weeks, I'm pleased to say that due to the commitment of the teams both on the ground in Germany and back in our offices in the UK (together with a number of extremely late nights) we managed to achieve our target operating performance late in the evening of 31 July. This demonstrates to me not only the effort AFC's technical teams and contractors are giving to the delivery of this project, but also the seriousness by which we as a company give to the target dates and milestones AFC put into the market, and our own expectations of meeting or exceeding those targets.

We currently have two remaining project milestones for the POWER-UP programme in Stade. These consist of: commencing operation of a full tier (8 cartridges) of the KORE fuel cell system and subsequent sale of that power into the German electricity grid, and secondly, generation of the full 240kW nameplate capacity of the KORE system before the end of this year. Having had the opportunity to visit Stade yesterday, I continue to be confident of our ability to meet the final two milestones in the timeline outlined to the market. Indeed, we could expect to see the first tier operational within the next few weeks which will present the first sale of power into the German grid and provide further evidence of the robustness of our technology platform.

I think you'll agree that for the next three months, which will take us to the end of this year, you can expect some exciting and historic announcements from AFC.

http://www.moneyam.com/action/news/showArticle?id=5124026

I have posted earlier somewhere else .............

Overhang gone

It looks like the Market knew of - Linc - needed to sell and therefor the shares were slowly marked down till the deal was done. Now the last month holding at bottom flooring looks bullish for the UP again.

"This transaction should remove any concern in the market of an overhang due to the potential divestment of Linc Energy's position."

the technology being developed by AFC (and TSLA) is slowly but surely gaining traction
mentor is a short-term trader, and as such he seems to read charts pretty well and there may well be a few shekels to be made on that tack
for myself, i have a some tucked away in my sipp with a longer term view, and i'll be very disappointed if it does not bear good fruit in the fullness of time

Moving on the right direction, as MMs are also moving prices up on small size buying, that is another way of confirming the overhang is clearly gone, not only on the large size changing hand but also on the MMs books

36.50 v 37.75p +0.675p

small rise so far considering the good buying
WINS is the one wanting to move the share price higher

Just top up @ 37.45p

found out this, on the AFC sector

Intelligent Energy hails 'transformational' £1.2bn India fuel cell deal
UK company to provide power to 26,500 mobile masts in India through Essential Energy subsidiary
By Will Nichols | 02 Oct 2015

Intelligent Energy's £1.2bn deal this week to power thousands of phone masts in India will prove "transformational" for the company and the fuel cell industry as a whole, according to chief executive Henri Winand.
The UK-based company has entered into a long term contract to supply power to more than 27,400 phone masts, marking a major step up from the two smaller deals it signed with Microqual and Ascend Telecom Infrastructure (ATL) last year.

The deal will see Intelligent Energy switch out expensive and polluting diesel engines that are required to power the masts in the absence of reliable grid electricity with clean running fuel cells, selling the power through its wholly owned subsidiary Essential Energy.

Supporting phone masts is particularly important in emerging economies, where large amounts of financial transactions are conducted through smart phones and losing signal when the power goes can mean losing business.
Winand expects the deal will "prime the pump" for licensing the technology, which he insists can drive emissions and cost savings when deployed at volume. Ultimately, it could provide a solution for a large proportion of India's more than 425,000 mobile phone masts.

"The further you get away from the grid, the more the cost of power goes up - that's where you can introduce new technologies," Winand says. "India has a huge gap between grid availability and reliability and what people really need. On average cell towers [in India] are without power for eight hours so you need diesels chugging along. That's a lot of energy off-grid where the customer today pays 10 times more than grid price."

Intelligent Energy has been playing the long-game in India, first deploying fuel cells in the country 2011 before picking up the deals with Microqual and ATL. The company now has around 400MW under contract, when in January last year it had nothing.

There have been mishaps along the way, of course - window-sized filters from the fuel cells were whisked away to act as mosquito guards in windows, while the local wildlife has also proved a challenge. "We learned to put bollards around the cabinets after we had an incident where a camel-drawn carriage reversed at great speed into one of our fuel cells," Winand says. "Amazingly enough, the fuel cell was at an angle but still working."

The company has also looked at other opportunities to embed itself in communities, teaming up with Welsh company Hydro Industries to power water purification technology using excess electricity generated by its cell mast fuel cells. Around 720 million of India's 1.25 billion population lack access to clean drinking water, according to some estimates, while UNICEF says around 100,000 people die of water-related illnesses each year, with waterborne diseases costing the Indian economy $600m in lost production and medical treatment.

Providing reliable power to support businesses dependent on mobile phones alongside clean water has had a "phenomenal" reception in India, Winand says.
Targeting such a huge market has also allowed for economies of scale that helped it reduce the cost of its fuel cells. The same scalable technology has been turned into a charging solution personal and supplied to vehicle manufacturers.

Winand sees both applications as an extension of the increasing distribution of energy - all of us want to take our phones and vehicles with us without being tied to a grid connection. Convenience is key, he argues, we could all drink from a tap but still shell out more than petrol for bottled water.
Intelligent Energy's Upp charger, originally targeted at the African market but launched in the UK last year, is squarely aimed at the convenience market. It provides a week of power for any USB device through reusable cartridges. A slightly smaller Upp 2 is in the pipeline and Winand has his sights on bypassing the needs for cords altogether and putting fuel cells inside phones and laptops - potentially as soon as the end of next year. The company has also purchased a disposable, but fully recyclable, fuel cartridge from the maker of Bic biros.

In 2010, Intelligent Energy and Suzuki debuted a fuel-cell powered scooter. Two of these were picked up in the last 12 months, during which the company's revenue rose from £3.5m to £27.4m and it completed a £55m IPO. This year, Toyota will bring its Mirai fuel-cell powered sedan to UK shores, while Hyundai's ix35 fuel cell is already available. But without supporting infrastructure, can these cars make any impact on the market?

"In eight years, we had contracts with two car manufacturers, then in 10 months an extra two," Winand says. "What is that telling you?"
With car manufacturers on board, mobile applications in the pipeline and a "transformational" contract to provide stationary power across the subcontinent, Intelligent Energy is demonstrating that hydrogen power is finally here to stay.

i assume no direct link with AFC other than further application of the technology

Some very large trades and volume up to 1.8M, but share price spikes and down again
order book DEPTH of 12 v 9, spread 38 v 40p last "AT" was 38p

Close at middle price 39p no UT

UAE says to invest $35 bln in clean energy by 2021
AFP – 5 hours ago

The gas-rich United Arab Emirates will invest $35 billion in clean energy by 2021 as it seeks to reduce its dependence on fossil fuels following crude's global price slide, it said Sunday.

"By 2021, our investments in nuclear and solar projects will reach $35 billion (31 billion euros)," Energy Minister Suhail al-Mazrouei said at an energy conference in Abu Dhabi.
He said that the UAE's four nuclear reactors currently under construction will, once operational, "provide 24-25 percent of electricity consumption in the country".

An international consortium led by Korea Electric Power Corp (KSE: 015760.KS - news) won a contract in 2009 worth more than $20 billion to build the four 1,400-megawatt reactors at Baraka, west of Abu Dhabi.

"Our aim is to increase the share of renewable energy to 30 percent between now and 2020/2030, and to reduce that of natural gas to 70 percent," Mazrouei said.
Speaking on the sidelines of Sunday's conference, he told AFP that "this diversification also seeks to ensure price security and stability" for consumers.............
yahoo.com/news/uae-says-invest-35-bln


support on the 200 days MA

43.75p +4.75p

Gap at the start and now paying up to 45.75p, with good volume already after the news.............

AFC's KORE Fuel Cell System Achieves First Delivery of Power
into the German Grid

Highlights
· Successfully delivered first power into the grid from AFC fuel cell facility in Stade, Germany

· AFC remains on target to achieve first full commercial scale operability of KORE module (final Milestone 11) in late 2015

AFC Energy plc (AFC.L), the industrial fuel cell power company, is pleased to announce that it has successfully delivered its first power into the German power grid, as part of the planned trials of the power electronics connected to its first commercial scale KORE fuel cell system.

This achievement is the final test stage of proving and providing electricity to the German grid from the KORE system and confirms that AFC remains on target to deliver the world's largest alkaline fuel cell system operating at an industrial facility later this year.

In the final stages of the power electronics tests, completed in collaboration with Siemens AG, power was delivered into the local grid at between 5.9 - 7.4kW, for a period of approximately one hour. This has generated test data which is required in preparation for the operation of at least 40kW from 8 cartridges, comprising milestone 10 of the 11 point plan, scheduled for 2015.

Mr Adam Bond, AFC's Chief Executive Officer, said: "With the KORE system successfully commissioned in July and the 8 cartridges required for the delivery of Milestone 10 now having arrived in Stade, the trialling of the power electronics and connection to the power grid was one of the final stages of testing required before we deliver an initial 40kW from 8 cartridges within the KORE system. We look forward to providing further updates when Milestone 10 is achieved."

Why Now Is The Perfect Time To Buy AFC Energy plc,
By Peter Stephens - Monday, 5 October, 2015

Shares in alkaline fuel cell developer AFC Energy (LSE: AFC) are up by as much as 13% today after the company announced that it has successfully delivered the first power to the grid from its fuel cell facility in Germany.
This is a very positive piece of news flow for the company as it is the final test stage of proving and providing electricity to the German Grid from its KORE system. It also confirms that AFC is on-track with its 11 point plan, of which it is progressing with stage 10 at the present time.

The tests results showed that power was delivered to the local grid at between 5.9 and 7.4 kW for around an hour. The test data generated will help AFC to prepare for the operation of upwards of 40 kW from eight cartridges and, with them having been delivered to its plant in Germany, it expects to complete stage 10 of its 11 stage plan before the end of the calendar year.

Clearly, AFC is a relatively volatile stock, with its share price having fallen from 58p in July to just 33p in September. However, with a greater focus on cleaner power generation across the globe and AFC being a profitable business with a bright future, now seems to be the perfect time to buy a slice of it for the long term.

from one of my latest trade mags ......
AFC
when fully operational in late 2015, it (Stade, Germany) will be the world's largest alkaline fuel cell system operating at an industrial facility selling power into the national electricity grid



and perhaps not unconnected, also from Germany .....
Hyundai hydrogen fuel cell car travels record distance in 24 hours

i wonder if Hyundai make their own cells, or if not, with whom do they work?

easy come easy go with profits

sold yesterday my first lot at 43p+ put the money on TERN
and today the other one 40.50+ the money has gone to CPX

When I read a RNS I naturally pick out a few or at least a single point to comment on either good or bad.

With this RNS I can't see any point in singling out anything simply because every aspect mention is in the good category and I can't see any negatives at all.

Yes we all want jam tomorrow, but AFC instead of week promises that many AIM companies roll out give us sensible and obtainable targets that will I am sure produce the results we all feel are achievable.

Well done to Mr Bond and his team, (The world is not enough).

StockMarketWire.com
AFC Energy has successfully achieved the penultimate Milestone 10 in its 2015 POWER-UP programme.

It achieved Milestone 10 by commencing temporary operation of an entire tier of eight fuel cell cartridges on the KORE system where it achieved a maximum output from the tier of just over 40kWe.

The eight fuel cell cartridges used in this Milestone 10 trial will also be used to test the second and third tiers of the system in the coming weeks. This will require that they are cycled (switched on and off) many times. In order to preserve their effective operational longevity for the further testing, they were therefore not run to full capacity in this latest test, nor for an extended time period.

Each tier (there are three in total) within the KORE fuel cell system is capable of operating independently of the other so the successful operation of a single tier of eight cartridges is a significant further de-risking of the system and in particular the Balance of Plant.

The eight cartridges will soon be installed into each of the remaining two tiers to test the operational capability of the rest of the system before the final milestone of 240kWe is trialled in December 2015. At this stage, AFC is confident that the learnings gained from this trial, both in terms of the fuel cell cartridges and the Balance of Plant, together with the infrastructure to connect the system to the grid, will greatly support the delivery of Milestone 11 in December 2015.

hydrogen fuel cells are slowly gaining traction

from a trade paper ......
The US Maritime Administration has announced field trials for "the first prototype hydrogen fuel cell to power onboard refrigerated containers"

has drop a lot today but Indicators still negative ......... late news of Options granting

AFC Energy Grants Options Over 480,000 Shares (ALLISS) - Tue, 13th Oct 2015 16:34
LONDON (Alliance News) - AFC Energy Tuesday said it has granted options over 480,000 shares at 39.25 pence each.
The industrial fuel cell power company said options over 450,000 shares were granted to a consultant which provides commercial advisory and business development services in the Middle East.
The remaining options over 30,000 shares were granted to an employee under its share option scheme.
Shares in AFC Energy closed down 5.1% at 37.25p on Tuesday.