Wedoany.com Report-Mar 19, AFC Energy PLC (AIM:AFC, OTC:AFGYF) is doubling down on its efforts to bring clean hydrogen power to market by ramping up production of its Hy-5 technology and larger-scale ammonia crackers.
At the same time, the company is working hard to make its fuel cell systems cheaper and more scalable. This shift in focus is all about making hydrogen a more practical and cost-effective alternative to diesel generators.
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John Wilson, AFC's CEO, is confident about the company's direction. "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."
So, what does this actually mean? The Hy-5 system is designed to make hydrogen more accessible by turning ammonia into clean fuel. This approach has the potential to cut out a lot of the cost and complexity that have slowed hydrogen adoption in the past.
The goal is to provide a zero-emission alternative to diesel generators that isn’t just environmentally friendly but also competitive on price. If AFC Energy can match the cost of traditional Stage 5 diesel generators, it could be a game-changer—especially for industries like construction, transport, and off-grid power.
The company has already made progress, delivering 20 of its smaller 30kW fuel cell generators to Speedy Hire, one of its key partners. AFC has also deployed a 45kVA generator at a construction site in Madrid with Acciona and set up a production facility capable of making up to 250 fuel cells per year.
Wilson sees this as just the beginning. "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."
To push things forward, AFC has also launched a new subsidiary, Hyamtec, which will focus on commercialising its ammonia-cracking technology. This division is working on improving efficiency and scaling up production to make hydrogen more widely available and affordable. The company is targeting 2026 for the rollout of its Hy-5 units, which will be capable of producing up to 500kg of hydrogen per day.
Financially, AFC ended the year with £15.4 million in cash, having generated £4 million in revenue—up from just £227,000 the year before. However, it still posted a loss of £17.4 million, similar to last year’s £17.5 million loss. The company invested £9.5 million in research and development, with £2.7 million coming back in tax credits.
While AFC is confident about its future, it acknowledges that scaling up manufacturing and bringing its technology to market will require additional funding.
