14th Jul 2014 08:41
LONDON (Alliance News) - AFC Energy PLC Monday said it has signed a deal to provide five megawatts worth of fuel cell systems to major South Korean hydrogen supplier, Chang Shin Chemical Co Ltd.
The industrial fuel cell power company said the memorandum of understanding is the first commercial agreement it has signed in the country, which is one of the world's fastest growing markets for large scale, stationary fuel cell power generating systems.
AFC said it will use hydrogen produced at Chang Shin's chemical works to create clean energy with zero carbon emissions, which will be delivered to the electricity grid of South Korea.
The company said that, in line with its ongoing strategy, the deal will be structured as an energy supply contract in which it will install and operate its fuel cell systems at Chang Shin's sites in return for undisclosed long term fees.
AFC said the deal will be implemented in stages, with the first being a pilot fuel cell unit at one of Chang Shin's gas processing facilities before being scaled up from one megawatts to five megawatts capacity.
The firm said it will now work with Chang Shin to finalise a definitive contract within six months.
"This agreement is the first step towards a potentially major long term collaboration with Chang Shin," Chief Executive Ian Williamson said in a statement. "We have made this important breakthrough into South Korea just as this country's demand for fuel cell systems is set for strong growth. We look forward to working with Chang Shin and expect to clinch further new business in this market in the near future."
AFC Energy shares were up 11% to 23.60 pence, putting it in the top ten AIM All-Share risers during early trading on Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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