AFC Energy Plc Agreement with Peel Environmental (4813Q)

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RNS Number : 4813Q

AFC Energy Plc

30 November 2016

30 November 2016

AFC Energy PLC

("AFC Energy" or the "Company")

AFC Energy Enters Agreement with Peel Environmental for Assessment of UK's Largest Hydrogen Fuel Cell Precinct

AFC Energy (AIM: AFC), the industrial fuel cell power company, is pleased to announce it has signed an agreement with Peel Environmental Limited ("Peel") to assess the techno-economic feasibility of the UK's largest hydrogen fuel cell precinct at Peel's Protos industrial park.

Protos is located between Manchester, Liverpool and Chester and will deliver 250 hectares of industrial development in the North West of England. It represents a strategic cluster of businesses encompassing energy intensive industries with associated supply chains and importantly, reflects Peel's vision for an energy generation hub that provides secure, low carbon and low cost energy generation to its onsite facilities.

AFC Energy will conduct the assessment in collaboration with Peel and other third party partners to review a range of hydrogen sources and offtake arrangements and work with local stakeholders that will see a proposed phasing of fuel cell projects at Protos commencing at 1MW through to an estimated 35MW to 50MW of installed capacity at the site.

The installation of a fuel cell project of the scale proposed could see a range of new investment and potential employment creation opportunities consistent with the UK Government's Northern Powerhouse initiative. The Northern Powerhouse has been recognised by the UK Government for several years as a major player in the country's energy sector. The focus on low carbon generation technologies clearly identifies the region as a national hub for nuclear power, onshore and offshore wind, biomass and associated supply chains. The integration of hydrogen fuel cells into the regional energy mix creates further opportunities for decarbonisation of the national power sector and utilises surplus hydrogen available in the area to generate clean energy on a long term basis.

A positive outcome from the techno-economic assessment for the development of a 35MW to 50MW fuel cell project at Peel's Protos site could see the development of the UK's largest stationary fuel cell project and one of the largest in the world, confirming a growing transition towards a hydrogen based economy, and thereby positioning Protos and AFC Energy at the forefront of this movement.

The feasibility study will be conducted over several months into 2017.

Myles Kitcher, Managing Director of Peel Environmental and Protos, said:

"We are delighted to partner with AFC Energy in investigating the feasibility of this commercial scale hydrogen fuel cell techno-economic feasibility study, working towards a fuel cell project of scale. AFC's hydrogen fuel cell precinct study will complement the existing low carbon energy generation technologies on site at Protos. This type of technology demonstration at Protos, exemplifies the industrial strategy which the UK government is promoting. A successful hydrogen fuel cell project of this scale will be a first for the UK and we hope to be able to support more new technologies in the future to provide regional economic growth and competitive low carbon domestic energy.

Mr Adam Bond, AFC Energy's Chief Executive Officer, said: "AFC Energy is proud to be collaborating with Peel Land & Property Group. This techno-economic feasibility study will see a proposed phasing of fuel cell projects at Protos commencing at 1MW through to an estimated 35MW to 50MW of installed capacity at the site, delivering the first phase of an industrial fuel cell power company. Following recent advances in the development of the AFC Energy fuel cell, the Board now believe the Company is well positioned to capitalise on these project deployment opportunities and hope to make further such announcements in the near future. Protos will provide the ideal opportunity for a scaled and commercial hydrogen fuel cell facility that will play an important part in the long term and sustainable powering of the UK's Northern Powerhouse. I'm confident that with the mix of skills and capabilities of AFC and Protos, we will deliver a world class innovative fuel cell project right here in the UK".

For further information, please contact:

 
AFC Energy plc 
 Adam Bond (Chief Executive Officer)                              [phone] 
Cantor Fitzgerald Europe - Nominated Adviser and Joint Broker 
 Andrew Craig 
 Richard Salmond                                                  [phone] 
M C Peat & Co LLP - Joint Broker 
 Charlie Peat                                                     [phone] 
 
Lionsgate Communications - Public Relations 
 Jonathan Charles                                                 [phone] 
 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

About AFC Energy

AFC Energy plc has developed and successfully demonstrated an alkaline fuel cell system ("KORE"), which converts hydrogen into "clean" electricity. AFC Energy's key project POWER-UP demonstrated the world's largest operational alkaline fuel cell system at Air Products' industrial gas plant in Stade, Germany, in January 2016. The Company is now looking to build upon an already established pipeline of commercial opportunities and drive the findings from the development phase of the technology into a technically optimised and commercially relevant fuel cell system. For further information, please visit our website: www.afcenergy.com

About Peel Land & Property Group and Peel Environmental

Peel Land and Property lies at the heart of The Peel Group, one of the foremost real estate, infrastructure and transport investment enterprises in the UK. The Group's specialist development teams have a proven track record in delivering high quality sustainable projects.

Peel Environmental is part of Peel Land and Property, which owns and develops land for the purposes of, amongst other things, clean energy and waste infrastructure projects. It has achieved consent for a range of energy infrastructure schemes including a 21MW Energy from Waste plant and 250,000tpa Anaerobic Digestion and Materials Recovery Facility in Glasgow; a 26MW Energy from Waste at Kellingley Colliery, Yorkshire, and a 20MW Timber Resource Recovery facility at Houghton Main, Barnsley. Peel works with investors, waste management companies, technology providers and contractors to secure a deliverable business model for each project. Peel Environmental brought forward and consented the Protos development, previously known as Ince Resource Recovery Park. The 51ha (126 acres) development site has full outline planning consent and part detailed planning consent for general manufacturing and distribution uses, as well as a biomass facility and an Energy from Waste facility. Further information about the site can be found at www.thisisprotos.com

This information is provided by RNS

The company news service from the London Stock Exchange

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November 30, 2016 02:00 ET (07:00 GMT)