http://www.afcenergy.com/

Dawnay, Day Corporate Broking Research Note

Aim Admission Document

Southern Oil Refining Fuel Cell System - Update
AFC Energy (AIM: AFC), the industrial fuel cell power company, is pleased to provide an update on its first commercial order in Australia for a proprietary hydrogen power generation unit from refiner, Southern Oil Refining Pty Ltd ("Southern Oil").

Over the past few months, AFC Energy has conducted initial engineering and supply chain preparedness work in advance of finalising the full suite of terms for supply of a fuel cell system into Southern Oil's Gladstone Refinery during the course of 2019. This work has included several meetings with electrode supplier, Industrie De Nora together with containerisation suppliers that AFC Energy is currently working with to maximise the "plug and play" capability of the fuel cell system in Gladstone.

In the week commencing 15 October 2018, representatives of AFC Energy met with Southern Oil management at the bio-refinery and advanced bio-fuels laboratory site in Gladstone and at Southern Oil's Brisbane based offices to progress the logistics, installation, operational matters and confirm commercial and contractual principles associated with the fuel cell system installation.

Southern Oil is currently reviewing the final engineering design of their hydrogen solution at the bio-refinery which may result in an adjustment to the volume of hydrogen available for the fuel cell system in Gladstone, however, both parties remain ever focused on deployment of Australia's first industrial scale fuel cell system.

Tim Rose, Southern Oil's Chief Executive Officer, said: "We are delighted to continue our collaboration with AFC Energy. It is exciting for us to be the first mover in acquiring AFC's hydrogen alkaline fuel cell. This technology compliments our suite of renewable, waste to energy projects which is focused on delivering economically viable, and environmentally responsible clean energy".

Adam Bond, AFC Energy's Chief Executive Officer, said: "It was great spending the week with Southern Oil and seeing the tremendous work being carried out in Gladstone, Queensland. Southern Oil have designed and built the world's most advanced re-refining plant of waste lube oil back into base lube oil - as well establishing Australia's only Advanced Bio-Fuels Pilot Plant and Laboratory. It is these types of facilities, together with companies such as Southern Oil, where the deployment of zero emission fuel cell systems makes absolute sense. We continue to collaborate closely with Southern Oil's technical team to ensure AFC Energy's fuel cell is fully operational within the timeframe of their advanced bio-refinery, expected to be mid 2019."

Commercial Update
AFC Energy (AIM: AFC), a leading alkaline fuel cell power company, is pleased to provide a commercial update for the period ended 31 October 2018.

AFC Energy has now successfully concluded the majority of engineering design to bring to market its first commercial fuel cell system. The system will have a low cost per kWh compared to alternative generating systems, partially as a result of its ability to use lower quality and less expensive hydrogen sources.

In building its Go-to-Market strategy, AFC Energy has been working with a leading clean-tech specialist consultancy to leverage existing commercial activities and establish alternative distribution channels to accelerate future growth. Strong emphasis is being placed by the Company on preparation for commercial deployment and the strengthening of its supply chain in response to the Southern Oil order in Australia and growing interest for fuel cell systems from potential customers in Japan (and other interest from the APAC region).

The Company has taken major steps over the last six months towards the appointment of key manufacturing partners across the key areas of the supply chain. Main highlights include:

· Electrode manufacture: recent test data has indicated that the partnership with electrode manufacturer Industrie De Nora will lead to significantly lower build costs for the fuel cell while increasing the longevity of the electrodes. The composition of electrodes for commercial deployment is now being finalised in anticipation of first customer shipment to Southern Oil.

· Flow plate and stack manufacture: the selection of a manufacturing partner for the production of the fuel cell flow plates is at an advanced stage and the Company expects to provide an update in the coming weeks. The Company has completed the plate design to optimise flow of gases and liquids to the electrodes.

· Balance of Plant modularisation and containerisation: contract negotiations are underway to create the first fully containerised Alkaline Fuel Cell system, enabling the first scalable "plug and play" commercial unit with up to 200 kW of power.

AFC Energy has established further improvements in electrode longevity and cost reduction through its joint development activities with Industrie De Nora and is in the final stages of confirming an electrode pairing for the Southern Oil project in Australia. These electrodes are expected to be supplied by Industrie De Nora to AFC Energy in Q1 2019, subject to agreement on the terms of a Strategic Electrode Supply Agreement.

https://www.moneyam.com/action/news/showArticle?id=6207585

Crikey !....what's the rumour ?...sp has gone wild !.....

gone wild?????
sp is now about 6.8p mid so nothing to get remotely excited about

From 4.5p...….could be the Chinese have bought a stake....

Just hope they haven't bought a hammer as well....

there's no news and volume is unexciting

A little weird but there is bound to be some news about fuel cell progress....perhaps more positive than before...also the market cap should probably be worth more than it is....

I bet a share consolidation coupled with fund raising and an update is coming.....don't like consolidations for small caps....most of the time never does the sp any good......

AFC certainly won't be getting any more of my money

You could always ...I think they call it average down....or is it up....(need to check that)….their fuel cell might be very close to commercialisation...if the company announces that : then : the sp will zip upwards !....

i shall be happy if the company avoids the glue factory
good money after bad comes to mind

I'm now only 82% down after 7 years! :-(

World first hydrogen electric vehicle charger

AFC Energy (AIM: AFC), the leading alkaline fuel cell power company, today announced the successful demonstration of CH2ARGETM, the world's first electric vehicle charger based on hydrogen fuel-cell technology. The breakthrough by the UK-based energy technology company previewed the potential to enable 100% clean electricity for future EV charging.

The demonstration of the CH2ARGE unit took place at Dunsfold Aerodrome, home to the BBC Top Gear test track, and saw a BMW i8 as the first ever car to be recharged with power generated by a hydrogen fuel cell. The innovation takes place after 10 years of fuel cell research development at the AFC Energy laboratories.

Having now demonstrated proof-of-concept of the CH2ARGETM prototype, AFC Energy is preparing for the commercialisation of fuel cell-based EV Charge solutions to meet the growing demand for environmentally friendly power in the EV market. Traditional charging causes pollution with electricity from fossil fuels, but AFC Energy's CH2ARGE system can be 100% emissions free.

With the rapid growth in the international EV market and ambitious Government targets for EV deployment over the short term, UBS, the global investment bank, has forecast the investment required in new charging infrastructure to be in the order of US$360bn over the next eight years.

In the UK alone, were the Government to deliver on its policy of 50% of new car sales being EVs by 2030 and 100% by 2040, the National Grid forecasts there will be 36 million EVs on the road - up from c.200,000 today. If one in 10 of these EVs are being recharged simultaneously, the UK's future fleet of 36 million EVs would have a forecast peak demand surge of 25.7 GW based on today's average EV battery size: that's almost 8 new nuclear power stations or 98 London Array offshore wind farms. This is before consideration is given to the requisite investment needed across the national transmission and distribution networks to handle potentially large surges in peak power demand.

AFC Energy's CH2ARGE system is working to provide a solution to these potential future challenges and its CH2ARGE unit has the potential to deliver locally-generated electricity through thousands of installations that generate 100% clean electricity.

"By 2030, it is estimated that there could be nine million electric vehicles on the roads of Britain, up from 90,000 today," said Adam Bond, Chief Executive Officer at AFC Energy. "For this transition, we need charging stations to be embedded throughout the country, as well as seeking innovative solutions to overcome the severe limitations of centrally generated electricity. By developing and previewing the effectiveness of our CH2ARGE system in the application of EV charging, AFC Energy has shown it is ready to lead the way not only in solving the challenges of increased demand for electricity, but also doing so in a zero emissions approach."

CH2ARGE incorporates AFC Energy's proprietary hydrogen fuel cell system connected to an inverter similar to those used by Toyota at their Electric Vehicle research centre. The inverter transfers energy created by the fuel cell to a charger. The system on preview is supported by a 48V battery pack to assist with peak power demands. The solution can also be tailored for both on and off grid applications and scaled up as required.

The fuel cell is sized to provide sufficient power to charge EVs concurrently and can be scaled up to provide solutions for mass recharging at supermarkets, retail venues and sports stadiums. The inverters are controlled via AFC Energy's fuel cell control system which ensures the safe and precise control of the complete setup. Being integrated into AFC Energy's control system means that product solutions can be implemented with Smart Charging capabilities.

AFC Energy's CH2ARGEsystem highlights the versatility and adaptability of the Company's core fuel cell technology and builds on a number of announced and unannounced deployment opportunities currently under development by the Company.

That's much better from this company.....

but 5-year chart still tells a very ugly story .....

I'm only 78% down now!

probably something of nothing, but volume today has been about 17m vs usual 875k