UK-based AFC Energy says rising diesel prices are helping to drive increased interest in its hydrogen fuel-cell power generators and is targeting higher revenues in 2022.

Lower production costs and the removal of UK diesel subsidies are also supporting higher levels of customer enquiries, the company says in its H1 results.

“The macro environment of high global energy prices and drive for enhanced energy security and independence continues to create a compelling environment for accelerated growth of the global hydrogen market, and we remain focused on delivering tangible deployment expectations for the full year,” says AFC’s CEO Adam Bond.

AFC, which is listed on London’s AIM stock market, says it is achieving continued cost reductions through engineering and volume pricing on components.

AFC booked the first commercial order for its S Series liquid-cooled fuel-cell system from engineering group ABB during the first half of 2022, in a deal worth £4mn ($4.85mn). It also secured leasing agreements for its generators from construction companies in the UK and Spain.

£8.5mn – AFC’s losses in H1 2022

In addition, the company is engaged in dialogue with the maritime sector over potential shipping and portside applications for its technology.

One of the priorities for its technology is the development of greater fuel flexibility to allow customers to use methanol and ammonia alongside hydrogen in its ‘Power Tower’ generators, the company says.

“The Power Tower, while currently focusing on hydrogen fuel, will also be able to meet the demands of clients for hydrogen carrier fuel compatibility later this year with the integration of methanol reformer technology. We believe, based on market feedback, that this will lead to an increase in the number of systems deployed and also the size of those systems,” says Bond.

AFC reported first half revenue of £280,000, up from £150,000 at the same time a year ago. It booked a loss of £8.5mn against a loss of £3.6mn in the first half of 2021.

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Author: Stuart Penson