13 May 2015
AFC Energy PLC
("AFC" or the "Company")
POWER-UP Update - May 2015
AFC Energy plc (AFC.L), the industrial fuel cell power company, is pleased to provide an update on progress towards delivery of the Company's first 240kW KORE system at Air Products' Stade facility in Germany.
Highlights
· POWER-UP schedule remains on track for initial power production in July 2015
· Successful completion of KORE HAZOP review
· Successful completion of initial HAZOP review of KORE buildings, utilities and facilities, follow up actions underway
· Successful completion of explosion protection study of KORE in Germany
· Concluding phases of final building permit
· Deep foundations and site preparation works completed on site
· KORE construction ongoing with completion expected in time for July 2015 start up at Stade
Significant developments over the past few months include:
· Following a process hazard assessment of the KORE fuel cell module design using the Hazard and Operability (HAZOP) methodology, the KORE has passed a further independent and rigorous examination of its design safety functions. This is a significant step in the design validation of AFC Energy's fuel cell technology and builds upon the HAZOP undertaken previously by Foster Wheeler in October 2013. The HAZOP review was organised and moderated by leading German process engineering consultancy plantIng GmbH, with the support of AFC, the consultancy firm Efficientics and industrial gas partner Air Products plc. It was performed in AFC Energy's Dunsfold offices during a two day session on 25-26.03.2015. In the HAZOP method used, the set of piping and instrumentation diagrams (P&ID) of the KORE module were examined in small sections. Each of these has a specified design intention. Parameters which describe the design intent were then evaluated systematically in order to identify deviations and evaluate their effect. During the review, experienced process safety engineers led a multi-disciplinary engineering team in a robust examination of all safety aspects and functions of the KORE balance of plant and cartridges design. The output of this process has been a HAZOP report with clear actions and responsible parties defined to maximise process safety. These actions have now been implemented by AFC.
· Following the KORE HAZOP review in March 2015, AFC commissioned and received an explosion protection report drafted by the German consultancy firm Efficientics according to German industrial health and safety regulations and relevant technical standards. This report has confirmed that the KORE system assembly is classified as a "safe area", i.e. there is no area within the KORE module where an explosive atmosphere may occur, i.e. an ATEX zone. This result, in conjunction with the recent successful conclusion of the KORE HAZOP review, establishes the inherent safety of the KORE module design for use in an industrial setting.
· A further process hazard assessment of the structure and facilities designed to house the KORE system in Stade was undertaken using the HAZOP methodology. This subsequent review took place in two sessions, in Cologne on 10-11.02.2015 and in Hamburg on 28-29.04.2015 and was again led by engineering consultancy plantIng GmbH. The results of this review again provided a positive response to the safety accreditation of the building and facilities designed to integrate with the KORE operations on site in Stade. All recommendations and actions arising from the facilities HAZOP are being addressed by AFC. This is the first time a HAZOP has been undertaken on the facilities set to house the KORE and further validates the robust design being adopted by AFC across the integrated hydrogen supply, facilities, structures and KORE system within an industrial setting.
· In addition to the KORE module and associated facilities, a HAZOP has also been completed regarding the Air Products hydrogen let down station and supply pipeline to the AFC facility. Orders have been placed for all key hydrogen supply components required for connection to the KORE plant.
· AFC and its advisers, Artelia and plantIng, are continuing to work closely with local regulatory authorities on the final building permit for the Stade facility. We are confident this process is drawing towards a successful conclusion over the coming weeks and will provide the basis for construction of the remaining aspects of the Stade facility necessary to house the KORE system and associated utilities and infrastructure.
· Work has now been completed with regards the deep foundations of the facilities that will house the KORE system. This work has been completed to schedule and to budget. Final activities are now being concluded with regards the shallower foundations for the plant; these are expected to be completed over the coming weeks.
· The KORE module itself continues to be developed and constructed in Coventry, UK, and is on target for completion in time to allow commencement of operations at Stade in July 2015.
In summary, the POWER-UP schedule of works continues in accordance with the schedule outlined in AFC's RNS dated 8 December 2014, with commencement of operation still anticipated in July 2015.
Mr Adam Bond, AFC's Chief Executive Officer, said: "We continue to make great progress towards the successful deployment of AFC's first KORE system in Germany in the second half of this year. The challenging target set in fast tracking the deployment timetable by 18 months, and having the KORE delivered and operational by July 2015, has to date proven deliverable and we continue to wait in anticipation of a successful demonstration of the KORE system in July."
For further information, please contact:
AFC Energy plc Adam Bond (Chief Executive Officer) |
+44 (0) 20 3697 1209 |
Zeus Capital Limited - Nominated Adviser and Joint Broker John Treacy, Phil Walker Alex Davies, John Goold |
+44 (0) 20 7533 7727 |
M C Peat & Co LLP - Joint Broker Charlie Peat |
+44 (0) 20 7104 2334 |
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Lionsgate Communications - Public Relations Jonathan Charles, Rachel Rigby |
+44 (0) 20 3697 1209 |
About AFC Energy
AFC Energy plc is in the process of commercialising its proven low-cost alkaline fuel cell system, which converts hydrogen into 'clean' electricity. AFC's key project POWER-UP will demonstrate the world's largest alkaline fuel cell system at Air Products' industrial gas plant in Stade, Germany. The date for the demonstration of the 240kW "KORE" system has been fast tracked to December 2015, representing the final phase of AFC's pre-commercialisation technical development programme and creating the platform for the Company's global commercial fuel cell deployment. AFC has also recently announced the development of projects in Asia and the Middle East. For further information, please visit our website: www.afcenergy.com
