27th Jul 2015 08:20
LONDON (Alliance News) - AFC Energy PLC Monday said it has secured its first commercial revenue after signing a power purchase agreement for its energy generated at the company's fuel cell generation facility at Stade in Germany.
The developer of alkaline fuel cells said it has signed the power purchase agreement with Stadtwerke Stade GmbH. The contract will expire on July 31, 2017. However, there is a 12 month extension option.
"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," said the company.
The commercial terms of the agreement 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.
Still, AFC Energy shares were up 1.9% to 55.65 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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