Shares of AFC Energy plc (LON: AFC) barely moved after signing a hydrogen fuel cell supply and collaboration agreement with Urban-Air Port.
Urban-Air Port designs, develops and operates the ground infrastructure for autonomous airborne drones and electric take-off and landing (eVTOL) aircraft.
The partnership allows AFC Energy to lease a zero-emission hydrogen power generator to Urban-Air Port’s first-ever deployment in Coventry, known as “Air-One”.
The Hyundai Motor Group will help Urban-Air Port develop 65 similar airports across the globe that will strictly use renewable energy in line with global zero-emissions standards.
Urban-Air Port has identified over 200 potential sites that could host installations similar to Air-One’s, which could be developed over the next five years.
Investors seemed oblivious to the potential future revenues that AFC Energy could generate via the partnership, which could be extended for many years to come earning the firm, consistent revenues from the various leases.
AFC Energy further confirmed that today’s partnership was part of its commitment to eradicating diesel power generation in environments that are not connected to the grid.
Today’s announcement is a massive win for AFC Energy, which is building a reputation as the go-to provider of non-diesel power generation, as evidence by its ExtremeE race partnership.
Ricky Sandhu, Urban-Air Port Ltd’s Founder and Executive Chairman, said: “Zero-emission, off-grid power is a critical component of our offering at Urban-Air Port, and AFC Energy are the perfect partner; to provide that capability with their world-leading Hydrogen Fuel Cell technology.”
Adam Bond, AFC Energy’s CEO, added: “Urban-Air Port’s aspiration to establish a global network of urban airports and unlock clean air mobility worldwide affirms its disruptor qualities within the eVTOL and autonomous aircraft space.”
Today, AFC Energy’s shares bounced off a crucial support zone on the news, creating an excellent trading opportunity for aggressive traders. However, conservative traders may find it best to wait for a retest of the support level before jumping in.
*This is not investment advice.
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