AFC Energy, a leading provider of hydrogen power generation technologies, is pleased to announce its results for the year ended 31 October 2024 (FY 2024).

 

John Wilson, Chief Executive of AFC Energy, said:

"Since joining AFC Energy, my focus has been on working with the Board to develop the optimal plan to accelerate our path to commercialisation shaped around how we focus on areas of greatest opportunity and deliver a market push, rather than relying solely on market pull.

We see a compelling opportunity to displace fossil or carbon-intensive fuels by offering an integrated hydrogen solution that is both clean and commercially viable on a total cost of ownership basis, thereby solving the twin challenges of cost and availability that continue to restrict adoption.  We believe AFC Energy is well-positioned to be among the first to deliver a commercially viable, zero-emission alternative to diesel at scale.

Today's launch of the Hy-5 ammonia cracker reflects that opportunity. We can now provide hydrogen onsite, at materially lower cost and without the need for complex supply chains or new infrastructure. This addresses both the economic and logistical barriers faced by many construction companies and industrial operators. Compared to alternatives like bottled hydrogen or static electrolysers, Hy-5 will deliver a faster, more flexible and cost-effective route to decarbonisation.

We continue to see significant opportunity in our fuel cell technology. Through our joint venture with Speedy Hire, we've gained valuable deployment experience and market insight, and a more cost-effective hydrogen supply will unlock significant growth. We now see a clear path to lowering generator costs and deploying scalable, modular systems that address the diverse demands of our customers.

Together, our ammonia cracking and fuel cell technologies give us the ability to offer a fully integrated, zero-emission alternative to diesel generators - one that we believe will be competitive not just on sustainability grounds, but also on cost. This combination gives us the ability to achieve price parity with Stage 5 diesel generators, a critical benchmark for mainstream commercial adoption, particularly in the construction sector. This underpins the strategic direction we are now pursuing. We have already seen strong engagement across multiple sectors, including infrastructure, transportation and off-grid power. It is increasingly clear that hydrogen adoption can be dramatically accelerated if we provide solutions that remove cost and complexity from the equation. That is the role we intend to play.

 Our strategy going forward is therefore about focus. We are directing more of our resources into accelerating production of the Hy-5 and larger-scale crackers, while also driving down the cost and increasing the scalability of our fuel cell systems. We believe this will position AFC Energy for faster growth and significantly greater value creation in the years ahead. We look forward to updating shareholders as we execute this strategy and work towards delivering clean, low-cost hydrogen power at scale."

 

FY 2024 Highlights:

• Delivery of 20, 30kW S Series H-Power Generators to our joint venture with Speedy Hire Plc, Speedy Hydrogen Solutions, generating £4.0m of revenue (2023: £nil);
• Deployment of 45 kVA H-Power Generator (comprising 30kW fuel cell and 60kWh battery) at an ACCIONA construction site in Madrid, Spain;
• Establishment of production facility capable of producing up to 250 fuel cells annually;
• Launch of Hyamtec to drive the commercialisation of AFC's proprietary ammonia cracker technology for an affordable, scalable and accelerated route for hydrogen production;
• £15.4 million cash at year end;
• Loss after tax of £17.4m (2023: £17.5m); and
• R&D investment in 2024 of £9.5m (2023: £8.5m), with £2.7m R&D tax credits received (2023: £4.1m).

 

Post period developments

• Commencement of roll out and near term deployment of H-Power generator sets to Speedy Hydrogen Solutions' end customers with continued pipeline development;
• H-Power generator shipped to TAMGO for Aramco trial and mutual joint business plan to capitalise on the regional opportunity under development;
• Launch of Gen 3 H-Power S+ 200kW generator, based on initial ABB investment but at significantly lower price point - now on trial deployment with Brett Aggregates; and
• Appointments of new CEO, John Wilson, and CFO, Karl Bostock, to drive AFC's commercialisation.

 

Strategic Repositioning: from technology-led to market-led growth

• Successful commercialisation of AFC Energy's world-leading technology is the clear focus for the new management team;
• Strategic priority is now on delivering low-cost, on-site hydrogen production and price parity with incumbent diesel solutions; and
• We are focusing on market "push" through innovative lower cost hydrogen solutions to remove final barriers to adoption.

 

Fuel Cell Priorities

• Focused on driving substantial manufacturing cost reductions for both the S Series and S+ Series H-Power Generators;
• Programmes underway to deliver material reductions in size and weight of the H-Power Generator product portfolio;
• Improving performance of S-Series stack technology; and
• Developing compact 100kW modular, scalable power module for S+ Series.

 

Hyamtec Priorities

• Commercialisation of Hy5, the world's first containerised, portable, cracking module capable of producing up to 500kg/day which was launched today for delivery from 2026;
• Scaling of multi-heat source increasing throughput 100 fold for large scale industrial heat and hydrogen pipeline system;
• Improving energy efficiency and thermal response; and
• Confirmation and protection of the manufacturing methods for low-cost assembly.
• Commercial roll-out and demonstration of Hyamtec systems to build up in-field operational data; and
• Successful PCT (patent) applications filed based on core technology with a further batch to follow in 2025.

 

End to End Solutions

• From 2026, hydrogen provided by Hy5, in conjunction with AFC fuel cells aims to provide TCO (total cost of ownership) parity with a stage 5 diesel generator, accelerating the transition to clean energy at price point equivalence; and
• Accelerated plans to further significantly reduce the cost of S Series Generators by up to two thirds of current costs, resulting in decision, in agreement with Speedy, to pause plans for mass roll out of generators to preserve cash and drive substantial adoption in the medium term.

 

Outlook

• Additional 30kW fuel cell generator sales to Speedy Hydrogen Solutions are expected to follow successful customer deployments:
  • JV partners working to support increased customer deployments. Delivery of further orders will follow achievement of targeted manufacturing cost reductions; and
  • We expect our strategic repositioning to significantly increase market penetration and volume of units sold in the medium term due to achieving cost parity with stage 5 diesel generators.
• Advanced discussions regarding development and deployment of large scale cracker systems:
  • Already able to deliver profitably at a highly competitive, and market disruptive, price point; and
  • Significant industrial engagement across multiple market application segments.
• UK Government grants of up to £3.7 million secured for FY2025.

 

Investor Presentation

John Wilson, Chief Executive Officer and Karl Bostock, Chief Financial Officer, will host a live presentation for retail investors via Investor Meet Company on 20 March 2025, at 14.00 hrs GMT.

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 19 March 2025, 17:00 hrs GMT, or at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and add to meet AFC ENERGY PLC via: https://www.investormeetcompany.com/afc-energy-plc/register-investor

 

 For further information, please contact:

 

AFC Energy plc John Wilson (Chief Executive Officer)  Karl Bostock (Chief Financial Officer)	+44 (0) 14 8327 6726 investors@afcenergy.com
Peel Hunt LLP - Nominated Adviser and Joint Broker Richard Crichton / Georgia Langoulant / Emily Bhasin	+44 (0) 207 418 8900
Zeus - Joint Broker David Foreman / James Hornigold (Investment Banking) Dominic King (Corporate Broking) / Rupert Woolfenden (Sales)	+44 (0) 203 829 5000
RBC Capital Markets - Joint Broker Matthew Coakes / Teri Su Eduardo Famini / Jack Wood   FTI Consulting - Financial PR Advisors Ben Brewerton / Chris Laing / Evie Taylor	+44 (0) 20 7653 4000       +44 (0) 203 727 1000 afcenergy@fticonsulting.com

 

 

About AFC Energy

AFC Energy plc is a leading innovator in hydrogen-based power and ammonia cracking solutions, delivering clean energy for on-grid and off-grid applications. The Company's hydrogen fuel cell technology provides a sustainable alternative to diesel power generation, supporting electric vehicle charging, decentralised power systems for construction, and temporary power needs. AFC Energy is also exploring new opportunities across maritime, data centres, and rail, driving the decarbonisation of growing electrification demands.

 

The Company's subsidiary, Hyamtec, is commercialising proprietary ammonia cracking technology to unlock new opportunities in distributed hydrogen production. This includes hydrogen refuelling, natural gas displacement for industrial processes, and hydrogen combustion engine conversions. Hyamtec's solutions are designed to meet the decarbonisation needs of industries such as mining, cement, asphalt, power generation, and heavy engineering, supporting the global transition to clean energy.