History and Background
AFC Energy was incorporated in January 2006 to purchase certain assets relating to alkaline fuel cell technology and know-how from Eneco and subsequently raised £2.4 million to fund the initial working capital requirements of the Company. In April 2007, AFC Energy completed its IPO and admission to AIM, raising c. £3 million from ordinary shares.
Since the late 1990’s Eneco had engaged in the integration of advanced energy systems in vehicles, which included fuel cell applications in vehicles and boats under the direction of AFC Energy’s now CEO, Gerard Sauer, and Chief Technical Officer, Otto Carlisle. From 2000 to 2002, this work was extended to include the design and manufacture of the core systems for the same applications, culminating in late 2002 in a programme dedicated to the design of, and the manufacturing processes required for the production of, fuel cell electrodes.
Eneco adopted a dual strategy with a main team focussed on the production of a less expensive conventional three part electrode, whilst at the same time a second team of scientists and production engineers pursued a more radical step change in cost engineering that resulted in the invention of a new methodology of producing both an electrode and a fuel cell system.
Despite considerable technical success, Eneco decided to concentrate on bringing hybrid power systems to market and in 2004 and 2005 it significantly reduced its research and development expenditure on the second part of its dual strategy, the electrode and fuel cell system. In June 2005, Howard White was introduced to Eneco and in January 2006 successfully concluded negotiations to purchase the know-how related to the fuel cell cost engineering.