We are focused on the delivery of these strategic milestones throughout the course of 2016.

2016 Strategic Milestones

Fuel Cell Stack and Balance of Plant (“BOP”)

1. Develop a second generation (“Gen 2”) fuel cell stack and BoP during the second half of 2016.
2. Operate the Gen 2 fuel cell stack and BoP over an extended test period (>1 month) before the end of 2016.
3. Confirm the availability and longevity of the fuel cell system to meet minimum industry standards required for commercial deployment as agreed with project partners.

Product Development

4. Conclude basic design and engineering on a simple cartridge 10kW system capable of deployment in 2016.
5. Conclude basic design and engineering on a 1MW capacity fuel cell system capable of deployment in 2017.

Commercial Opportunities

6. Commence scoping studies for at least three international fuel cell projects with a focus on the Middle East and Asia.
7. Secure contracts for at least two international fuel cell projects for delivery in 2017.
8. Secure value added strategic partnerships with recognised industrial and institutional groups.

Our Business Model

Our business model is to install, own, operate and maintain alkaline fuel cell power projects.

AFC Energy seeks to be a fuel cell power provider and will target joint ventures, in which AFC Energy aligns its interests with those of its partners, by having “skin in the game”.

AFC Energy expects to achieve its target of 1GW of capacity installed or under development by 2020.


Our Strategic Priorities

Our Technology

Project POWER-UP is proving the ability of AFC Energy’s alkaline fuel cell system to deliver the technical performance, longevity and stability of power output.

In February 2016, AFC Energy announced that it had successfully delivered gross electrical output in excess of 200kW at its fuel cell power plant in Stade, Germany.

Our Plan of Action

Achieving Milestones

While our 2015 milestones focused on technical and manufacturing developments to support the Stade project, this year’s eight milestones are focusing on three areas:

  • Further optimising the design of our fuel cell stack and BoP
  • Product development of plants ranging from 10kW to 1MW, and
  • Securing value added partnerships with recognised industrial and institutional groups as well as commencing scoping studies and securing contracts for at least two fuel cell projects.

Our Performance


Milestones for 2016


Milestone Power Output


Our Strategic Priorities

Existing Partners

The POWER-UP consortium consists of partners with world-class expertise to achieve the project’s objectives.

Consortium partners include: Air Products (UK), GB Innomech (UK), Paul Scherrer Institut (Switzerland), ZBT Centre for fuel cell technology (Germany) and European Hydrogen Association (EU).

Our Plan of Action

New Partners

New partnerships include a strategic engineering partnership and services agreement with Germany-based engineering consultancy plantIng GmbH to support the optimisation and rollout of AFC Energy’s alkaline fuel cell system. AFC Energy has also signed a MoU with the Dubai Carbon Centre of Excellence (DCCE) for the assessment and potential deployment of an estimated 300MW of fuel cell generation capacity, making this the largest single fuel cell deployment programme in the world.

Our Performance


Number or Project POWER-UP consortium partners


Capacity under assessment

Multiple Markets

Our Strategic Priorities

Multiple Markets

Power generation in the industrial sector, but ancillary applications for waste water treatment, when combined with electrolysis, are also being investigated.

Our Plan of Action

Continual Development

Gain experience of more hydrogen production methods and integration requirements.

AFC Energy is currently in discussions with potential customers and partners, who are assessing opportunities sized at the single cartridge size, up to multi-mega watt projects.

Our Performance


Families of patents

Customer Sales

Our Strategic Priorities

Growth Markets

Targeting generation of revenue from the sale of Balance of Plant, leasing of modular fuel cell cartridges, operation and maintenance fees and dividends from the sale of power and water.

Our Plan of Action

Global Footprint

Position and establish the Company in key international markets.

Targeting commercial partners who are most likely to be “early adopters” of the technology, within diversified, international markets.

Our Performance


Number of key original markets

Our Sources of Income

Development Income
External agency funding makes our share capital work harder. At AFC Energy, we look to fit our development needs within defined funding rules. This allows projects to be delivered earlier and with less call on internal financial resources for capital items.

Overhead Coverage
Many agencies fund direct time spent on key technical research, development and demonstration. A portion of overhead recovery is also permitted. This dramatically improves our monthly cash burn rates.

Licence Revenue
Our initial licence revenues were obtained last year. Our work with partners in this area is designed to seed opportunities for our fuel cells in markets, which have a longer sales/delivery process such as Waste-to-Energy. Working in this way minimises our sales costs and helps deliver market recognition earlier.

Capital Sales Revenues
Although, in the longer term, we wish to retain ownership of our fuel cell systems it may be prudent to engage with some of our partners to sell our systems as we continue our development. This additional revenue will help support the Company during this initial phase.

Electricity, Heat and Water Revenues
An Energy Services Company (“ESCo”) is AFC Energy’s supply method of choice. We believe this will reduce decision time, especially in mature industries, and allow the Company to take advantage of the expected longer term growth in global energy prices.

Maintenance and Security
Our fuel cell projects will have a life of 20+ years operation, meaning the ability to offer services and maintenance contracts for the fuel cell cartridges and systems provides long-term annuity revenues.

Our Risks

Technical Progress
AFC Energy holds a vast quantity of operational data that needs to be fully assessed to identify areas for ongoing improvement.

Financial Risks
Financial risks include the risk of additional development expenditure being required to produce a commercial product.

Credit Risk
Credit risk arises principally from the Company’s trade and other receivables and cash and cash equivalents. It is the risk that the counterparty fails to discharge its obligation in respect of the instrument.

Liquidity Risk
Liquidity risk arises from the Company’s management of working capital and the amount of funding required for the development programme. It is the risk that the Company will encounter difficulty in meeting its financial obligations as they fall due.

Interest Rate Risk
The Company is exposed to interest rate risk in respect of surplus funds held on deposit.

Currency Risk
The Company operates internationally and therefore is exposed to fluctuations in currency exchange rates.