27 July 2015
AFC Energy PLC
("AFC" or the "Company")
AFC Signs First Commercial Power Purchase Agreement with Stadtwerke Stade for German Fuel Cell Generation Facility
Highlights
· Purchase power agreement (PPA) represents first commercial revenue for AFC
· Agreed terms until 31 July 2017 with option to extend for another 12 months
· AFC to potentially benefit from sale of power at peak power pricing
AFC Energy plc (AFC.L), the industrial fuel cell power company, is pleased to announce that it has executed its first commercial power purchase agreement ("PPA") with Stadtwerke Stade GmbH ("Stadtwerke Stade") for the sale of electricity generated at AFC's fuel cell generation facility at Stade, Germany.
The sale of electricity under the PPA represents the first commercial revenue to be generated from an AFC fuel cell system. Furthermore, it will not only provide a source of revenue for AFC, but also provide valuable operational experience in the dispatch of electricity into the German power grid through one of the region's leading power utilities.
AFC has been in discussions with Stadtwerke Stade for the last few months in relation to the PPA and is now pleased to have agreed terms that will see the two companies collaborate as part of the AFC fuel cell facility in Stade until 31 July 2017, with an option to extend the term of the PPA for a further 12 months.
The commercial terms of the PPA shall broadly reflect the sale of electricity at spot market prices, meaning AFC will potentially benefit from the sale of power at peak power pricing.
Adam Bond, Chief Executive Officer of AFC, said: "As we near commencement of our first fuel cell operation at Stade, the signing of this commercial PPA with Stadtwerke Stade provides a further clear indication of our company's move towards commercialisation. It is an important part of our corporate strategy to work collaboratively with local partners in our projects and support local economies wherever possible, which makes this deal all the more important for AFC. We are delighted to have this opportunity to work with Stadtwerke Stade and look forward to maintaining a long and productive relationship with the organisation whilst we operate our project in Stade."
Christoph Born, Managing Director of Stadtwerke Stade, said: "We are extremely pleased to be working with AFC Energy in the deployment of the world's largest alkaline fuel cell into the Company's Stade facility. This project has the potential to be a catalyst for larger scale fuel cell deployment programmes across the country and Stadtwerke Stade's participation in this commercialisation phase project demonstrates our company's ongoing commitment to supporting clean energy and innovative power technologies in Germany."
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 Phil Walker, John Treacy Alex Davies, John Goold |
+44 (0) 20 7533 7727 |
M C Peat & Co LLP - Joint Broker Charlie Peat |
+44 (0) 20 7104 2334 |
|
|
Lionsgate Communications - Public Relations Jonathan Charles, Rachel Rigby |
+44 (0) 20 3697 1209 |
About AFC Energy
AFC Energy plc is fast approaching commercialisation for its proven low-cost alkaline fuel cell system ("KORE"), 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. For further information, please visit our website: www.afcenergy.com
About Stadtwerke Stade
Since 1859, Stadtwerke Stade has been providing the city of Stade's public power supply.
Today, nearly 160 years later, the achievements of Stadtwerke Stade include the supply of the city and surrounding communities with electricity and / or natural gas, as well as drinking water. Additionally, the company provides energy services from the installation of modern gas heating systems to advice on various funding options for its customers.
Additional information can be found on our website: www.stadtwerke-stade.de/
