Fuel cell specialist AFC raises funds for rental JV

Hydrogen fuel cell specialist AFC Energy PLC has raised £15.8 million in two share issues and will use the proceeds to invest in its rental joint venture with Speedy Hire and expand its manufacturing capacity.

The UK company has obtained £13.8 million in a placing of ordinary shares, plus £2 million on the REX platform to existing retail shareholders. The funds will allow it to supply H-Power 30kW fuel cell generators to the rental fleet of Speedy Hydrogen Solutions, the 50/50 joint venture it formed with Speedy last year.

An AFC Energy fuel cell genset in the colours of rental partner Speedy Hydogen Solutions. (Photo: AFC Energy)

It will also help it supply TAMGO (The Machinery Group, part of Caterpillar dealer Zahid), its distributor in Saudia Arabia and the Middle East, including the UAE, Qatar, Oman, Kuwait and Kazakhstan.

In addition AFC said it would invest in production equipment to support the scale-up of its manufacturing facility, which is located at the company’s HQ at Dunsfold Aerodrome, south west of London.

Adam Bond, chief executive of AFC Energy, said: “I would like to thank all our existing and new shareholders for supporting this raise and we welcome the participation of our retail investors through the REX Retail Offer.

“We look forward to reporting on the build out of our inventory and delivery of H-Power Generators into the field as we continue our drive to displace diesel generators and be at the forefront of the industry as the transition gains momentum.”

The fund raising is conditional of approval from shareholders at the company’s AGM on 28 June.

The new funds are another milestone in the development of the company. In addition to its JV with Speedy, the company announced in May that it had agreed to supply its S Series fuel cell modules to aerial platform manufacturer Niftylift for use in its hydrogen-electric (H2E) aerial platforms.

Niftylift’s HR17 articulating boom, powered by hydrogen fuel cells. (Photo: Niftylift)

AFC will design and sell the modules packaged specifically for Niftylift, with deliveries to start in early 2025. The OEM will use the fuel cells in its H2E platforms and assess the opportunity to scale the fuel cells into larger MEWPs, said AFC.

Separately, Niftylift is supplying its H2E platforms exclusively to Speedy Hire in the UK.

John Keely, managing director of Niftylift, said the company was thrilled with uptake shown in the UK and overseas for the fuel cell powered platforms; “Our collaboration with AFC Energy as a market leader in fuel cell technology further enhances our strong reputation in offering zero emission powered access equipment to a growing international market and further underscores our commitment to advancing our technology whilst doing so in a sustainable way.”

AFC Energy reports progress on fuel cell gensets Hydrogen genset deliveries to begin in 2024