AFC Energy announces first commercial relationship with Akzo Nobel
January 26th, 2007
AFC Energy PLC (”AFC” or “the Company”), the low cost fuel cell company, is pleased to announce that it has entered into a cooperation agreement with Akzo Nobel for the production of electricity from hydrogen, produced as a by-product of an electrolysis process, based on alkaline fuel cell technology.
Under the terms of the agreement, Akzo Nobel will test AFC Energy’s low cost hydrogen fuel cell technology at its Bitterfeld site in Germany to generate clean energy from the substantial quantity of hydrogen that is currently produced as by-product at chlorine production plants. The economical feasibility of larger units to convert hydrogen from an electrolysis process to electricity and useful heat will be evaluated.
The current excess hydrogen produced by Akzo Nobel would support approximately 5-10 Megawatts of green electricity generation. The AFC business model will offer a capital payback within three years with effective zero cost electricity thereafter.
The replaceable electrode technology will enable the ongoing maintenance of the units well past the five year guaranteed operating period.
Howard White, Chairman, AFC Energy said;
“The fuel cell industry has to-date been focusing on technological developments and the advancement of fuel cell components. Today marks a significant transition for the fuel cell industry demonstrating that our fuel cell technology is becoming a commercial and viable reality.
”With AFC Energy’s single priority of developing commercial applications for its fuel cells this agreement sees a step change for the industry as the company becomes the first fuel cell concern to provide an end-user with a clean energy solution without cost disadvantage.
“The relationship with Akzo Nobel is a vital step in the adoption of our remarkable and unique technology. It is particularly reassuring to be in a commercial relationship with a company such as Akzo Nobel, one that is totally familiar with the electrolysis process and with the handling of large quantities of hydrogen on a constant basis. We look forward to enjoying a close working relationship with Akzo Nobel and we congratulate them on their vision for being a leader in their own industry for the production of clean energy.”
Knut Schwalenberg, General Manager Chlor-Alkali of Akzo Nobel added:
“The Chlor-Alkali industry is energy intensive, so improving energy efficiency is a top priority to keep the processes sustainable.
“Huge amounts of hydrogen are produced in the electrolysis process as by-product of chlorine and caustic lye. The immediate conversion of this hydrogen into electricity, based on locally installed fuel cells, and the use of this electricity back in the electrolysis process would create an ideal loop. Akzo Nobel regards the technology of AFC Energy as promising and we are looking forward to the results of the cooperation.”
AFC Energy recently completed a private placing to raise a further £1.0 million to accelerate its development. Prior to this several million has been spent on developing the technology since 2001.