http://www.afcenergy.com/

Dawnay, Day Corporate Broking Research Note

Aim Admission Document

50MW Project Development Agreement in South Korea

AFC Signs Milestone 50MW Deal with Samyoung and Changshin for the Commercial Deployment of Fuel Cell Technology in South Korea

AFC Energy plc (AFC.L), the industrial fuel cell power company, is pleased to announce that it has signed a formal Project Development Agreement ("PDA") with two South Korean partners: Samyoung Corporation ("Samyoung") and Changshin Chemical Co. ("Changshin") for the deployment of an initial 50MW of fuel cell generation capacity in Daesan, Korea.

Highlights

· 50MW of installed fuel cell capacity across two phases
· Expected revenue of approx. US$1bn for the joint venture over 10 years of operation
· First phase of 5MW to be operational by end of 2016 (subject to permitting)
· Second phase of 45MW forecast to be operational by end of 2019 (subject to permitting)
· Joint venture between the three companies with indicative participating equity interests of: AFC Energy (40%); Samyoung (45%); Changshin (15%)

This landmark deal confirms AFC Energy's transition from research and development to a global energy company working in collaboration with two of South Korea's most reputable companies.

South Korea's strong incentives in the deployment of fuel cell technologies has brought significant investment and employment opportunities to the Daesan region, which AFC Energy is proud to support.

Assuming a gross output of 50MW from the fuel cell park, the joint venture is expected to generate revenues from the sale of electricity and Renewable Energy Certificates (RECs) over a 10 year period of just under US$1bn.

The project reflects the start of a partnership between the three companies, which is expected to see multiple projects developed beyond this first project. Negotiation of the suite of project agreements is expected to commence immediately having now established the framework principles for collaboration within the Joint Development Agreement. The exact details of the investment each party will make in support of the joint venture is still subject to negotiation but it is expected that each party will make an upfront contribution, either in cash or in kind. The parties also intend to secure project finance for the joint venture. The parties are set to commence development of a feasibility study for the project to establish the basis of design and economic analysis in support of a more detailed project engineering assessment, further details of which will be supplied in due course.

It is proposed that AFC Energy will sell its alkaline fuel cell equipment into the joint venture along with providing technical and operational advice to the joint venture participants. Between Samyoung, which will manage the development of the project as Engineering Procurement and Construction and permitting of the 50MW project, and Changshin, which will supply hydrogen, land and logistical support on site, and AFC, the partnership creates an environment, which will drive a successful and profitable enterprise in the execution of this project.

more...

Not knocking anything re this, but anyone any idea how much profit will be generated from 1bl$.

Strange to me that people sell at a time like this.

I think its just down to traders.
I think the sp will probably finish a tad lower than the current price, so it's just timing it right.
I actually thought of selling a few this morning and buying back later, but have changed my mind as I don't want to risk it.

Who knows, another contract could be just round the corner.

This one sentence to my mind is the most important, 'The project reflects the start of a partnership between the three companies, which is expected to see multiple projects developed beyond this first project'.

Don't you just love the word Multiple.

I prefer the words 'over fifty pence" :-)

How about Multiple 50p's.

Heard a rumour that AFC are looking for a center of operations headquarters in south Korea.

http://skyscrapercenter.com/building/tower-palace-three-tower-g/733

The problem is that most investors, especially those that like myself have been in since almost day one, expected to be far well in advance to where we are today.

That is not a criticism, just a fact.

We have to alter our conception (I have) as to the future.

It will not be mega bucks tomorrow, something I thought in 2010 when although not falling for all the hype surrounding this share, I did count the future in not so much years as months.

For a while now I have looked at AFC as a company progressing steadily toward profitability, now that progress is accelerating at a rapidly increasing speed.

Factual progress is now hitting the speed that I dreamed about all those years ago and I have now extended my time line to 2017 and beyond.

I say 2017, as I fully expect the sp to be well over £1 within 2 years mainly due to the prospects of multiple orders being signed by 2017.

By then investors will be buying AFC on it's future, after that they will be buying on it's future and present.

I can't imagine where the company will be in 4, 6 years and beyond, but what I am sure of is that we will look back at early 2015 as the year AFC truely lifted off.

Looking at the company today, as an investor looking for that once in a lifetime share, would I buy at todays price, you bet I would.

Very rarely give a recommend on a share, but if you are prepared to invest and sit back for a couple of years, this has to be a screaming buy!

I agree Greekman....looking very promising at long last.....one to watch : a sp surge could be on the cards very soon as the market cap is very, very low.....with big prospects ahead.....fingers crossed....Nanoco (NANO) is also involved in South-Korea...with also massive potential for their dots (for televisions)....anyway....staying put with AFC and might add....

You mean its no longer :-

I nearly fainted when I saw the share price @£15,400 until I realised it was the other AFC :-)

Perhaps you had a premonition of the future, sp around 2030!!!!!!!!!!!

Sp has shot up today !...

Almost doubled in the space of a few days....amazing....

20p may be a tough area.

Presentation now on AFC site.

So much for 20p being a hurdle - currently in auction +58.1%.

About time too!

Damn - that rights issue looks cheap now :-(