AFC Energy Cuts Fuel Cell Costs by 85%, Signs New Supply Deal and Targets Global Manufacturing
AFC Energy PLC (AIM:AFC, OTC:AFGYF) has achieved a significant milestone in its commercialisation strategy, reducing the build cost of its 30kW hydrogen fuel cell generator by 85%.
The cost reduction comes as a result of a value engineering programme and the adoption of low-cost stack technology, positioning AFC’s hydrogen generators as a viable alternative to diesel-powered systems in key markets. The company aims to reach cost parity with conventional diesel units, bolstering the appeal of its clean energy solutions.
Highlights:
· Cost reduction of c.85% from current build cost, achieved through adoption of low cost stack technology and value engineering exercise.
· Supply agreement signed for future supply of fuel cell systems to support demand.
· Plans well progressed for volume manufacturing, with intention to enter into global strategic partnership with Volex Plc, a leading global integrated manufacturing specialist, to support AFC volume growth plans.
Following the signing of a supply agreement for custom fuel cell systems, in conjunction with an extensive value engineering exercise, AFC Energy has reduced the build cost of its 30kW hydrogen fuel cell generators by c.85%. This exceeds the Company’s target for substantial generator cost reductions and helps to drive adoption of our technology to displace diesel, together with our hydrogen production capability, at cost parity.
AFC Energy and Volex Plc are working together with the intention to enter into a global strategic manufacturing partnership to support AFC Energy in driving cost down further through materials leverage and economies of scale.
To support anticipated demand, AFC has now signed a new supply agreement for future fuel cell systems and is developing plans for volume manufacturing. A global strategic manufacturing partnership is being pursued with Volex Plc, which is expected to unlock further cost efficiencies through economies of scale.
Chief executive John Wilson said the company’s strategy is to deliver commercially viable hydrogen solutions without relying on government subsidies.
“We previously announced an aggressive plan to target a significant reduction in the cost of our 30kW hydrogen fuel cell generators to drive market adoption,” Wilson noted. “I’m delighted that this ambition has been fulfilled, with an expected c.85% reduction, and we target mid-2026 for delivery of our first low-cost generators.”
He added: “We are grateful for the support of Volex Plc to date and look forward to developing our strategic partnership.”
