24 November 2015
AFC Energy PLC
("AFC" or the "Company")
AFC and Dutco Sign Heads of Agreement to Develop Business Plan for Large-Scale Fuel Cell Deployment across the Middle East
AFC Energy plc (AIM: AFC), the industrial fuel cell power company, is pleased to announce that it has signed a Heads of Agreement with DNR Industries Ltd., part of the leading Dubai-based investment and project developer, Dutco Group of Companies ("Dutco") to jointly fund and develop a business plan for the large-scale deployment of AFC's fuel cells across the Middle East.
The business plan will focus on defining a commercial strategy for what is expected to be a significant commercial fuel cell deployment opportunity, and pending the outcome of the business plan, is anticipated to result in the formation of a joint venture between the two companies to execute the plan commencing in the first half of 2016.
The joint venture between AFC and Dutco, is expected to cover the deployment of AFC's fuel cell across the United Arab Emirates, Kingdom of Bahrain, Kingdom of Saudi Arabia, Sultanate of Oman, Qatar and Kuwait. Based on initial estimates from market soundings already undertaken in the region individually and collectively by AFC and Dutco over recent months, this could present an opportunity on its own to deliver a large percentage of, if not in excess of, AFC's stated target for 1GW of fuel cell development by the end of 2020.
The business plan will also explore potential commercial models for the joint venture between the two companies with a long-term strategic view being taken regarding the prospect for a regional power utility.
Dutco has a long history of successful investment and project development across the Gulf region, and internationally, covering construction, oil and gas, hotels and hospitality and natural resources, and has successfully delivered a number of the region's largest infrastructure projects.
Mr Adam Bond, AFC's Chief Executive Officer, said: "I have long considered the Middle East to present AFC with an enormous near-term opportunity to deploy the Company's alkaline fuel cell technology into the growing clean energy portfolio of projects being supported in the region. The potential to work in collaboration with a group with the regional stature as Dutco presents a significant opportunity to not only leverage highly complementary skills sets and characteristics of the two companies, but also create a sizeable business platform for the deployment of the AFC fuel cell on an unprecedented scale."
Mr Bond further commented: "Dutco and AFC are already in dialogue with several of the Middle East's largest energy and utility groups to assess the opportunity for not only the supply of clean power to the region, but also significant quantities of clean water and to date, we believe the business potential for the AFC fuel cell in this region is one of the largest in the world. We look forward to further developing this business plan with Dutco over the coming weeks and start creating the basis of a long-term, sustainable energy and water business across the Middle East."
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, Nicholas How Alex Davies, John Goold |
+44 (0) 3829 5000 |
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 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 Dutco Group
Dutco Group
Established in 1947, the Dutco Group is a leading Dubai-based investment and project development company with interests in construction, oil and gas, freight and logistics, and hospitality. It has developed into a leading conglomerate of business interests through a philosophy of long-term strategic investment, often with joint venture partners. Its exclusive joint ventures with companies such as Balfour Beatty and McConnell Dowell in the Middle East have successfully delivered projects across the region for over 40 years. The Dutco Group also actively participates in Joint Ventures across the petro-chemical industry, including with Qatar Petroleum in one of Qatar's most successful joint ventures. For further information, please visit the Dutco Group's website: www.dutco.com
