AFC Energy PLC, a leading provider of hydrogen power generation technologies, has released its final results for the year ended 31 October 2023. The company's 2023 strategy focused on market penetration, resulting in a £27m order book for 30kW S Series H-Power Generators and ancillary equipment. AFC Energy signed significant agreements to expand its distribution channels, including a 50:50 joint venture with Speedy Hire for the formation of Speedy Hydrogen Solutions and an exclusive distribution agreement with TAMGO, a wholly-owned entity of the Zahid Group, targeting key markets in Saudi Arabia, the Middle East, and Northern Africa.
The company reported modest revenue of £0.2m, a decrease from £0.6m in 2022, attributed to the focus on market penetration. However, AFC Energy received its first S+ Series fuel cell stacks from a third-party contract manufacturer for ABB's initial 200kW H-Power Generator and completed strategic supplier qualification for all key H-Power Generator components, positioning for scale-up. The company also received a grant award of £4.3m from the UK Government under its red diesel scheme.
Post-period developments include the completion of design and engineering on the 30kW H-Power Generator, successful cost reductions in S Series fuel cell operation, and the company's first third-party Attestation of Conformity for CE Mark from TUV SUD for the 30kW H-Power Generator. AFC Energy's outlook for 2024 is focused on delivery, targeting sales to Speedy Hydrogen Solutions and Acciona to meet the growth in UK and European construction demand, as well as the accelerated growth in Saudi off-grid power demand through TAMGO.
Adam Bond, Chief Executive of AFC Energy, expressed confidence in the company's robust commercialization strategy, targeting further capital cost reductions, manufacturing scale-up partners, and newly announced international dealerships during 2024. He also highlighted the company's market-leading modular ammonia cracking technology and expressed confidence in delivering contracted customer deployments and revenue growth throughout the remainder of 2024.