Afc Energy Share Discussion Threads

[bumble bee2] 11/4/2012 14:53

RNS Number : 1452B
AFC Energy Plc
11 April 2012


11 April 2012

AFC Energy plc
("AFC Energy" or the "Company")
Commercialisation agreement with Waste2Tricity

AFC Energy plc (AIM: AFC), a leading developer of low-cost alkaline fuel cell technology for industrial applications, is pleased to announce that Waste2Tricity Ltd ("W2T") has exercised its right to exclusively represent AFC Energy in the UK for applications involving the integration of the Company's fuel cell products with hydrogen derived from the gasification of municipal solid waste to generate clean energy, pursuant to the agreement announced on 4 February 2009.
Under the terms of the agreement, AFC Energy is due to receive a non-refundable appointment fee of £1 million payable in stages over 4 years. The first instalment of £150,000 is due immediately. W2T will, subject to performance, be AFC Energy's exclusive agent for an initial term running until 2022 in the UK for securing fuel cell system supply contracts from projects where municipal waste is gasified, from which AFC Energy expects to derive further revenues. The agreement also grants W2T a right of first refusal regarding the supply of AFC Energy's fuel cells to further territories in Europe and North America for use in projects where hydrogen is derived from the gasification of municipal solid waste. AFC Energy and W2T will continue to work together to target and develop waste-to-energy opportunities as they arise.
On 4 February 2009, AFC Energy announced it had entered into an agreement with W2T to supply AFC Energy fuel cell products for integration into W2T's projects for the conversion of municipal solid waste to energy and for AFC Energy to receive a £1 million licence fee for granting exclusivity to W2T, subject to fundraising by W2T which has now been satisfied. AFC Energy is pleased with the commercial and financial progress made by W2T. In addition, under the terms of the agreement AFC Energy received an option to acquire 25% of the share capital of W2T, which was exercised in June 2009 for a nominal fee, and on 5 March 2012, AFC Energy announced it had received £152,500 in full repayment with associated interest of the loan made to W2T under the agreement.
W2T was established to initiate waste-to-energy projects using the most economically viable technologies available. W2T selected AFC Energy's fuel cell systems as having the greatest potential to be the most efficient technology for generating electrical power from gasified waste. The agreement follows significant progress made by W2T in the development of waste-to-energy projects within the UK.
Ian Williamson, Chief Executive of AFC Energy plc, said: "This agreement is an example of how AFC Energy is gaining commercial traction for its technology by targeting multiple industrial sectors. We have been very focused on creating licence revenues for our technology. Working with W2T, we are opening up excellent commercial opportunities for our fuel cell products to be deployed within the waste-to-energy sector. Lead-times in this industry can be long and W2T are considerably shortening the time scale for market entry. We look forward to working closely with them to develop the most economically and clean way of generating electricity from domestic and commercial waste."
John Hall, Managing Director of Waste2Tricity, said: "Today's agreement for exclusive rights builds on our relationship with AFC Energy who, like ourselves, see tremendous environmental and commercial benefits from treating waste as a feedstock resource rather than as a problem to be buried in landfill or burned in incinerators. Compared to any alternate technology the significantly higher efficiency of using AFC Energy's technology with high temperature gasification means we can produce more electricity from the same amount of feedstock. We see this combination of efficiency and clean power generation becoming the dominant solution for post recycled waste and it offers a future proof Carbon Capture ready answer. W2T have a solid pipeline of UK projects and are beginning to assess opportunities in the rest of Europe and North America and we believe this agreement will be beneficial for both companies."

[beeezzz] 11/4/2012 13:48

I wouldn't expect to much from the AGM today, the usual statement I would presume, all resolutions past were hey.

It's very difficult to say how long the testing will take, remember it means spending money to install the fuel cells up to maybe 1Mw this depends on the amount of hydrogen and the consumption of the FC's to produce 1Mw, so I don't expect Akzo to rush.

The more oil increases in price the more urgency there will be to find other sources of energy, if we all used EV's is would be the end of our electrical grid it just wouldn't cope, we would all be sitting in the dark at night. They say now you may even need to have your house re-wired to cope with charging an EV.

[piadda] 06/4/2012 23:34

Sorry if this has already been posted. Siemens plans for wind farm hydrogen production:

[solardave] 06/4/2012 21:38

Rocha16

The accounts are on their website; they had £6m in the bank in Oct 2011 and have a burned rate of £4.5m; so theyve got about £3.75m left which is about 10months of money; so a fund raise in six months is lickly.

More difficult is that there is no product and no revenue.

[rocha16] 06/4/2012 19:20

Looking pretty grim here; when do they need more money?

[holism] 05/4/2012 08:07

beeeeeeeez- i would add: new shareholders will come on board ahead of earnings if Akzo Nobel makes a significant order after successful trialling.

[beeezzz] 04/4/2012 12:54

6 month graph don't look good, pricing in a fundraising, always happens on AIM as the company just burns cash.

I hope the AGM gives some confidence to the share price in the short term, before we get final results from Germany.

[rovi57] 04/4/2012 12:53

holding up in this down trend market>

[beeezzz] 31/3/2012 17:24

MARCLEO3.....Good find, my suspicions where right the Akzonobel trials have been successful.

Wonder what this might do for the SP's, personally, not a lot, only when companies make profit on AIM does the share price rise significantly, market does not like debt in these financially strapped times.

[marcleo3] 31/3/2012 05:22

Westinghouse Plasma Corp's technology is used in the world's only commercial reference plant that converts MSW into electricity using plasma gasification. Westinghouse Plasma Corp, considered to be the world leader in plasma gasification, and Hitachi Metals collaborated to design the facility which was commissioned in 2003 and continues to operate today. Plasma torches supplied by Westinghouse Plasma Corp have a history of more than 500,000 operating hours at facilities around the world.

Earlier this year, Alter NRG signed a Joint Development Agreement with Air Products, which gives Air Products the right to license and incorporate Alter NRG's proprietary Westinghouse plasma gasification technology for use in renewable energy projects in Europe and North America.

Waste2Tricity's agreements with Alter NRG, and its exclusive rights to new generation alkaline fuels cells under development by AFC Energy plc, provide Waste2Tricity with a distinct advantage in the UK market. AFC Energy is an innovative producer of low-cost new generation fuel cells targeting waste hydrogen in commercial applications. AFC's fuel cell system has successfully completed initial field trials at AkzoNobel's chlor–alkali plant in Bitterfeld, Germany. Alter NRG's technology is ideal for producing a hydrogen stream, from waste and other low value feedstocks, which is suitable as fuel for AFC's technology.

Peter Jones, director of Waste2Tricity says: "Our appointment by Alter NRG Westinghouse as its independent UK sales representative is a great achievement. Waste2Tricity is in discussion with a number of potential end users and believes that key players in the waste industry recognise plasma gasification as a commercially attractive alternative to traditional incineration, maximising energy gains from diverting landfill material and minimising environmental impact.

"We believe that the combination of Alter NRG's plasma technology and the AFC Energy fuel cell will give Waste2Tricity the most commercially attractive model available in the market for generating electricity and will ensure that Waste2tricity becomes the market leader

[beeezzz] 29/3/2012 15:15

IMO AFC have already been given the green light by Akza Nobel otherwise why would they be ramping up production before receiving an order, it would seem a total waste of money and time, I'm sure the boffin's at AFC are working hard to make the elements more efficient and last longer, can't think what else they could be doing.

Akza have been impressed by initial results and want to press ahead with this at full steam, not sure when all these European directives on carbon foot print come into effect, is it 2013, if so they will have to get there skates on.

[johnny1982] 27/3/2012 00:46

Would it not be worth exploring tie ups with the temp power companies.... - APR/Aggrekko?
Just a thought, haven't really explored the viability of it.

[solardave] 22/3/2012 20:35

This video is worth a look:

[beeezzz] 22/3/2012 12:40

When I did the sums on Hydrogen produced by the chlor-alkali industry world wide.

I was just trying to gage the market size for AFC in this particular industry, AFC do say this is the major push for their FC's low hanging fruit as they put it.

So the worldwide consumption of electricity estimated in 2008 at 17.8 trillion kWh, now, they say that the chlor-alkali industry consumes 1% of the worlds electricity.

If so that means if I'm correct these are large numbers so don't take this as fact, 1.78 GWh used by chlor-alkali industry, 1 gigawatt = 1000 megawatts, lets say they get 1 gigawatt of business from chlor-alkali industry, I know very optimistic that means at £440k per megawatt = £440,000,000 not bad.


These figures are an assumption, correction me if these sound a bit wild, as for the 60% efficiency debate, that is stated by the company and is fact.

Now obviously there will be heat, together with pure water and depleted Oxygen which are all saleable so really you could be looking from a monetary point of view nearer 85%.

Energy is transformed into one form of energy i.e. kinetic energy or heat.

[beeezzz] 15/3/2012 13:51

Seems like UCG is being taken seriously in Europe...Which could be good for AFC..

[broshm] 14/3/2012 10:35

If you take the heat of reaction 2H2 + O2 as X cals , then will 60% of that energy come out as electricity + 40% as heat ? Thats how I see it ?

[holism] 14/3/2012 07:05

Yes beeeez- that answers the question, however I think 60% is a target not where they are at the moment.

[beeezzz] 13/3/2012 16:08

Good ?, they state that the fuel cell is 60% efficient in electrical generation, whether this is true for industrial waste Hydrogen or that the element continues this efficiency throughout the life of the electrode is something we await to hear.

I'm not sure whether that would mean 40% of the hydrogen is lost in the process, they've not really give any figures other than the efficiency, which means it's difficult to gauge the amount of hydrogen per MW of electricity.

Which is why I would like them to give us some idea at the end of the trials.

[holism] 13/3/2012 15:22

Beez what's the efficiency factor of 50% mean?

[beeezzz] 13/3/2012 11:06

I just took a look at the worldwide production of Chlorine each year.

There are more than 500 chlor-alkali producers at over 650 sites around the globe, with a total annual production capacity of over 55 million tonnes of chlorine.

For every tonne of chlorine made, 1.1 tonnes of caustic soda (100%) and 0.03 tonnes of hydrogen are produced

1M tons Chlorine = 30,000 tons Hydrogen

World wide Hydrogen produced by Chlorine production equals 1,650,000 Tons.

I wonder if AFC will tell us how much hydrogen it takes to make 1MW of electricity from their FC, if they do you can work out the number of FC's required just for the chlor-alkali industry alone. They stated that a 1mw fuelcell will cost around £440k

[saint in exile] 09/3/2012 12:37

RMP romping

[beeezzz] 08/3/2012 15:52

Hol.... I have a sneaky feeling we will hear something before the AGM, I was surprised they did not mention why they had moved the results sooner than last year.

I'm sure the AGM will be well attended considering the number of posters on iii BB.

[holism] 08/3/2012 12:58

yes beeez me too, I am encouraged that maybe the new non exec did appropriate due diligence before accepting the appointment. Comforting and bullish but nothing more. The AGM will be worth going to.

[saint in exile] 08/3/2012 11:23

I thought i told you to buy RMP lol! GLA i lost patience here but could be tempted back