AFC Energy Shares Rise on Environment Agency Green Light for Hydrogen Sales

AFC Energy (AFC.L) experienced a significant surge in share price today following the announcement that the UK Environment Agency has revised the company's permit, allowing it to sell low-carbon hydrogen produced at its pilot ammonia cracking plant.

AFC Energy shares have climbed over 4% following the news on Wednesday.

The revised permit accelerates AFC Energy's revenue generation from hydrogen production by several months. This allows the company to immediately begin selling hydrogen produced at its Dunsfold facility to off-takers.

The Environment Agency's agreement underscores AFC Energy's progress in producing ISO 14687 grade D hydrogen (99.97% purity) in volume. It also reflects confidence in the company's internal safety protocols and procedures. The permit revision also provides flexibility in the timing of the relocation of the Dunsfold pilot cracking plant, allowing for operative training in a live environment at the current site.

AFC Energy's pilot ammonia cracker site at Dunsfold has a production capacity of up to 300kg of hydrogen per day in its current configuration. This initial production will provide valuable data and experience as the company scales up its operations.

AFC Energy is actively working with its joint venture partner, Industrial Chemicals Group Ltd (ICL), to establish hydrogen production at ICL's facility in Port Clarence, Middlesborough. This collaboration involves deploying multiple Hy-5 ammonia cracker units, each capable of producing up to 500kg of hydrogen per day. The JV is working with the Environment Agency to establish a framework for accelerated permitting of future Hy-5 unit deployments across the UK.

CEO John Wilson commented, “We are delighted to have agreement from the Environment Agency to enable the export and sale of our own low carbon hydrogen produced from our ammonia cracker at our Dunsfold facility. This accelerates revenue generation for AFC Energy, from hydrogen production, by a number of months.” This statement underscores the company's optimism and commitment to expanding its hydrogen production capabilities.