AFC Energy Shares Rallied 5.7% on S+ Series, £2M ABB Funding

The AFC Energy plc (LON: AFC) share price rallied 5.68% after receiving a £2.0 million follow-on investment from ABB E-mobility as part of a partnership between the two firms that started in November 2021. The investment was made via a subscription where AFC Energy issued 10 million new ordinary shares at 20p each.

A separate release revealed that AFC Energy delivered its first high-performance, high-power density liquid-cooled fuel cells for independent validation as part of its Sales and Development Agreement with ABB E-mobility. The fuel cell system was delivered in October 2022 and has since been validated.

WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.

Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.

5.0

Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

After completing the latest £2 million investment, ABB E-mobility will have invested £4 million into AFC Energy and will own 15,038,760 shares, translating into 2.02% of AFC’s enlarged share capital. AFC Energy will use the capital raised to advance the development of its S+ Series fuel cell system.   

The second news release provided details about the partnership with AFC Energy, successfully delivering and validating its first cumulative 100kW Liquid Cooled Fuel Cell (S+ Series) in collaboration with partner ABB E-mobility.  

Investors cheered the news since the new commercial agreement between AFC Energy and ABB-mobility highlights AFC’s first sale to ABB and the prospective sales pipeline. The S+ Series fuel cells support the potential for high-power EV charging, critical power backup and maritime applications.

The agreement will kick off stage two of the partnership. AFC Energy will now deliver a modular 200kW high-power fuel cell system scheduled to begin operations later this year, closely followed by product certification shortly after. AFC Energy will sell the state-of-the-art 200kW hydrogen power generator unit (and battery system) to ABB E-mobility.

AFC Energy agreed to the modular fuel cell design with ABB E-mobility initially meant for high-power EV charging. However, ABB E-mobility has identified the design’s application to backup power generation, which could e a new market for the S+ Series. 

The company also intends to enter the maritime and large-scale off-grid and critical power backup markets using the S+ Series platform. AFC’s intense focus on reducing the Total Cost of Ownership (TCO) will pay off in future. 

*This is not investment advice. 

AFC Energy share price. 

The AFC Energy share price rallied 5.68% to trade at 21.290p, from Tuesday’s closing price of 20.145p.