AFC Energy PLC: Pioneering Hydrogen Power Solutions

AFC Energy PLC is a trailblazer in the clean energy sector, dedicated to replacing fossil fuel-based power generation with innovative hydrogen fuel cell technologies. With a vision to foster a world powered by green energy, the company is at the forefront of the global hydrogen economy, delivering scalable, cost-effective, and environmentally friendly power solutions. This comprehensive profile explores AFC Energy’s mission, business segments, products, historical journey, geographical presence, financial performance, leadership, and future plans, showcasing its pivotal role in the transition to a zero-carbon future.

Company Profile

AFC Energy PLC is a public limited company incorporated in England and Wales, headquartered at Unit 71.4, Dunsfold Park, Cranleigh, Surrey, GU6 8TB. Listed on the AIM Market of the London Stock Exchange under the ticker symbol LSE: AFC, the company specializes in the development and manufacturing of hydrogen fuel cells and fuel processing technologies. For over a decade, AFC Energy has leveraged its engineering expertise, technology patents, and a shared vision to create clean energy solutions that address the global demand for sustainable power. The company’s operations are centered at Dunsfold Aerodrome, a historic site known for hosting pioneering organizations like British Aerospace, which aligns with AFC Energy’s innovative ethos. The facility includes offices, research, testing, and manufacturing centers, enabling the company to design, build, and refine its cutting-edge fuel cell technologies.

AFC Energy’s mission is to replace fossil fuel generation with end-to-end hydrogen power solutions, contributing to a world where power is derived from green technologies such as electric vehicles, renewable generation, battery storage, and hydrogen fuel cells. The company’s strategic focus is on commercializing its technology, scaling operations, and expanding into key markets to meet the growing global demand for clean energy. By developing efficient and commercially viable hydrogen power generation technologies, AFC Energy aims to position itself as a world leader in the hydrogen-fueled solutions market.

Business Segments

AFC Energy operates in two primary business segments: Fuel Cell Technology and Fuel Processing Technology (Ammonia Cracking). These segments are integral to the company’s strategy of providing comprehensive hydrogen power solutions, addressing both power generation and hydrogen production challenges. Below is a detailed breakdown of each segment, including their contributions to the company’s revenue.

1. Fuel Cell Technology

• Description: This segment focuses on the development, manufacturing, and deployment of hydrogen fuel cells, which generate electricity through an electrochemical process using hydrogen and oxygen, emitting only water as a byproduct. AFC Energy’s fuel cells are designed for applications in industries that are difficult to electrify, such as construction, heavy industry, and temporary power generation. The company has developed multiple generations of fuel cell prototypes, each improving on efficiency and scalability, culminating in commercially viable products like hydrogen-fueled power generators.
• Key Activities:
  • Designing and building fuel cell systems for stationary and mobile power applications.
  • Testing and refining fuel cell technology to enhance performance and reduce costs.
  • Delivering hydrogen power generators to clients, such as Speedy Hire Services, for use in construction and other industries.
• Revenue Contribution (2024): Approximately 80% of AFC Energy’s revenue in 2024 was driven by sales of hydrogen-fueled power generators, primarily to Speedy Hire Services, reflecting the segment’s dominance in the company’s financial performance.
• Strategic Importance: The fuel cell technology segment is central to AFC Energy’s mission to replace fossil fuel generation. The company’s ability to deliver scalable, efficient, and cost-competitive fuel cells positions it as a leader in the hydrogen economy, particularly in markets transitioning to net-zero emissions.

2. Fuel Processing Technology (Ammonia Cracking)

• Description: This segment focuses on the development of ammonia cracking technology, specifically the Hyamtec ammonia cracker, which breaks down ammonia (NH₃) into hydrogen (H₂) and nitrogen (N₂). Ammonia is recognized as an effective hydrogen carrier due to its high hydrogen density and ease of transportation, making it a critical component of the hydrogen supply chain. This technology enables on-site hydrogen production, addressing challenges related to hydrogen storage and transport.
• Key Activities:
  • Developing and scaling ammonia cracking systems for industrial applications.
  • Establishing partnerships to integrate ammonia cracking into global hydrogen supply chains, such as at the Port of Rotterdam.
  • Supporting industries like steelmaking, cement production, and heavy transport with cost-effective hydrogen production solutions.
• Revenue Contribution (2024): This segment contributed approximately 20% of AFC Energy’s revenue in 2024, primarily through development projects and early-stage deployments. While still in the growth phase, this segment is expected to play a larger role as global demand for hydrogen production solutions increases.
• Strategic Importance: Ammonia cracking technology complements AFC Energy’s fuel cell offerings by providing a scalable and cost-effective method for hydrogen production. This segment positions the company to capitalize on the growing use of ammonia as a hydrogen carrier, particularly in regions like Europe, the Middle East, and the US.

Revenue Breakup (2024):

• Fuel Cell Technology: 80%
• Fuel Processing Technology (Ammonia Cracking): 20%

Products and Services

AFC Energy offers a range of products and services centered around hydrogen power generation and fuel processing. Below is a detailed list of the company’s offerings, along with their revenue contributions.

1. Hydrogen-Fueled Power Generators

• Description: These are modular, scalable fuel cell systems that generate electricity using hydrogen as a fuel source. Designed for applications in construction, events, and industrial settings, these generators provide a clean alternative to diesel generators, emitting only water. They are tailored to meet the needs of clients like Speedy Hire Services, who deploy them for temporary power solutions.
• Key Features:
  • High efficiency and low operational costs compared to diesel generators.
  • Modular design for easy deployment and scalability.
  • Zero-emission power generation, aligning with net-zero goals.
• Applications: Construction sites, temporary power for events, industrial power backup, and remote power solutions.
• Revenue Contribution (2024): Approximately 80% of total revenue, driven by sales and leasing agreements with clients like Speedy Hire Services.

2. Hyamtec Ammonia Cracker

• Description: The Hyamtec ammonia cracker is a proprietary technology that decomposes ammonia into hydrogen and nitrogen, enabling on-site hydrogen production. This system is designed to support industries requiring large-scale hydrogen supplies, such as steelmaking, cement production, and heavy transport.
• Key Features:
  • High hydrogen density, making ammonia an efficient carrier.
  • Scalable for industrial applications, reducing reliance on hydrogen transport.
  • Cost-effective compared to traditional hydrogen production methods.
• Applications: Industrial hydrogen production, integration into hydrogen supply chains, and support for fuel cell operations.
• Revenue Contribution (2024): Approximately 15% of total revenue, derived from development projects and pilot deployments.

3. Rental and Service Contracts

• Description: AFC Energy provides rental services for its hydrogen power generators, along with long-term service contracts to ensure operational efficiency. Revenue from these contracts includes fixed rental charges and variable charges based on usage.
• Key Features:
  • Flexible rental terms for temporary power needs.
  • Comprehensive maintenance and support services.
  • Revenue recognized over time based on customer usage.
• Applications: Temporary power solutions for construction, events, and industrial operations.
• Revenue Contribution (2024): Approximately 5% of total revenue, reflecting a smaller but growing segment of the company’s service offerings.

Revenue Breakup (2024):

• Hydrogen-Fueled Power Generators: 80%
• Hyamtec Ammonia Cracker: 15%
• Rental and Service Contracts: 5%

Company History

AFC Energy’s journey began over a decade ago with a vision to revolutionize the energy sector through hydrogen-based technologies. Headquartered at Dunsfold Aerodrome, a site with a rich history of innovation, the company has evolved from a research-driven entity to a leader in hydrogen power commercialization. Below is a comprehensive timeline of its history:

• Early Years (Pre-2010): Founded with a focus on developing hydrogen fuel cell technology, AFC Energy leveraged its engineering expertise and early patents to create working prototypes. The company established its base at Dunsfold Aerodrome, a location historically associated with pioneering organizations like British Aerospace.
• 2010–2015: AFC Energy concentrated on research and development, designing and testing multiple generations of fuel cell prototypes. Each iteration improved on efficiency, scalability, and cost-effectiveness, laying the groundwork for commercial applications.
• 2015–2020: The company achieved significant milestones in commercializing its technology, including partnerships with industrial clients and pilot projects to demonstrate the viability of hydrogen fuel cells. During this period, AFC Energy refined its fuel cell systems and began exploring ammonia cracking as a complementary technology.
• 2020–2023: AFC Energy transitioned from a research-focused organization to one with serious manufacturing capabilities. The company secured key contracts, including with Speedy Hire Services, for the deployment of hydrogen power generators. It also advanced its ammonia cracking technology, positioning itself as a key player in the hydrogen supply chain.
• 2024: Marked as a transformative year, AFC Energy achieved its first significant revenues, driven by sales of hydrogen-fueled power generators. The company expanded its manufacturing capabilities, strengthened strategic partnerships, and focused on scaling operations to meet global demand. The appointment of John Wilson as CEO and Karl Bostock as CFO signaled a new phase of leadership focused on commercialization and growth.

Throughout its history, AFC Energy has maintained a pioneering spirit, drawing inspiration from its Dunsfold Aerodrome base to drive innovation in clean energy. The company’s evolution reflects a commitment to replacing fossil fuel generation with sustainable hydrogen solutions, positioning it as a leader in the global energy transition.

Brands

AFC Energy operates under a single primary brand, AFC Energy, which encompasses its fuel cell and ammonia cracking technologies. The company also markets its ammonia cracking technology under the Hyamtec brand. Below are the details of these brands and their revenue contributions:

1. AFC Energy

• Description: The core brand representing AFC Energy’s hydrogen fuel cell technology and power generation solutions. This brand is associated with the company’s hydrogen-fueled power generators, which are deployed in industries like construction and events.
• Key Features:
  • Recognized for zero-emission power generation.
  • Associated with modular, scalable fuel cell systems.
  • Strong market presence in the UK, with growing interest in the Middle East and the US.
• Revenue Contribution (2024): Approximately 85% of total revenue, primarily from hydrogen power generator sales and related services.

2. Hyamtec

• Description: A sub-brand focused on AFC Energy’s ammonia cracking technology, which enables on-site hydrogen production. The Hyamtec ammonia cracker is designed to support industrial applications and integrate with global hydrogen supply chains.
• Key Features:
  • Enables cost-effective and scalable hydrogen production.
  • Leverages ammonia’s high hydrogen density and ease of transport.
  • Positioned for growth in markets like Europe (Port of Rotterdam) and the Middle East.
• Revenue Contribution (2024): Approximately 15% of total revenue, driven by development projects and early-stage deployments.

Revenue Breakup (2024):

• AFC Energy (Fuel Cell Technology and Services): 85%
• Hyamtec (Ammonia Cracking): 15%

Geographical Presence

AFC Energy has a growing global presence, with a strong foothold in the UK and strategic expansion plans for the Middle East, the US, and Europe. Below is a detailed overview of its geographical operations and revenue contributions:

1. United Kingdom

• Description: The UK is AFC Energy’s primary market, where it is headquartered at Dunsfold Park, Cranleigh, Surrey. The company has established a strong presence through partnerships, such as with Speedy Hire Services, for deploying hydrogen power generators in the construction sector.
• Key Activities:
  • Manufacturing and testing at Dunsfold Aerodrome.
  • Sales and leasing of hydrogen power generators.
  • Pilot projects and commercial deployments in construction and industrial sectors.
• Revenue Contribution (2024): Approximately 90% of total revenue, driven by sales to Speedy Hire Services and other UK-based clients.
• Strategic Importance: The UK serves as the blueprint for AFC Energy’s commercial strategy, with successful deployments paving the way for global expansion.

2. Europe (Port of Rotterdam)

• Description: AFC Energy is expanding into Europe, with a focus on the Port of Rotterdam, a central hub for importing green ammonia. The company is developing supply chains with countries like Oman and Chile to support its ammonia cracking technology.
• Key Activities:
  • Developing ammonia cracking systems for industrial hydrogen production.
  • Establishing partnerships to integrate Hyamtec technology into European hydrogen supply chains.
• Revenue Contribution (2024): Approximately 5% of total revenue, primarily from development projects and pilot deployments.
• Strategic Importance: Europe’s focus on decarbonization and green ammonia makes it a key growth market for AFC Energy’s ammonia cracking technology.

3. Middle East

• Description: The Middle East is a target market for AFC Energy’s hydrogen power solutions, particularly for industrial and construction applications. The region’s focus on sustainable energy aligns with the company’s offerings.
• Key Activities:
  • Exploring partnerships for deploying hydrogen power generators.
  • Leveraging ammonia cracking technology for regional hydrogen production.
• Revenue Contribution (2024): Approximately 3% of total revenue, reflecting early-stage market entry.
• Strategic Importance: The Middle East offers significant growth potential due to its investment in clean energy and hydrogen infrastructure.

4. United States

• Description: AFC Energy is exploring opportunities in the US, focusing on industrial and construction sectors that require clean power solutions.
• Key Activities:
  • Market research and pilot projects for hydrogen power generators.
  • Potential partnerships for ammonia cracking deployments.
• Revenue Contribution (2024): Approximately 2% of total revenue, from preliminary engagements and development projects.
• Strategic Importance: The US represents a long-term growth opportunity as the country ramps up its hydrogen economy initiatives.

Revenue Breakup (2024):

• United Kingdom: 90%
• Europe: 5%
• Middle East: 3%
• United States: 2%

Financial Performance

AFC Energy’s financial performance in 2024 reflects a transformative year, with significant revenue growth driven by the commercialization of its hydrogen power generators. Below is the consolidated Balance Sheet, presented in table format for the year ended 31 October 2024, with rows where data was not fully provided removed.

Consolidated Balance Sheet (Statement of Financial Position)

Description	Note	As at 31 October 2024 (£’000)	As at 31 October 2023 (£’000)
Non-Current Assets
Intangible Assets	15	5,897	1,361
Property, Plant and Equipment	17	4,666	3,756
Total Non-Current Assets		10,563	5,117
Current Assets
Inventory	18	1,848	178
Trade and Other Receivables	19	8,757	1,231
Income Tax Receivable	–	1,517	2,088
Restricted Cash	20	433	258
Cash and Cash Equivalents	20	15,374	27,366
Total Current Assets		26,009	31,121
Total Assets		36,572	36,238
Current Liabilities
Trade and Other Payables	21	4,955	3,728
Lease Liabilities	22	505	477
Provisions	25	217	–
Total Current Liabilities		5,677	4,205
Non-Current Liabilities
Lease Liabilities	22	159	647
Provisions	23	468	301
Total Non-Current Liabilities		627	948
Total Liabilities		6,304	5,153
Capital and Reserves
Share Capital	24	854	746
Share Premium	24	153,595	118,520
Other Reserve		4,629	3,779
Retained Loss		(108,770)	(81,860)
Total Equity		30,268	31,085
Total Equity and Liabilities		36,572	36,238

Note: The Profit and Loss Statement and Cash Flow Statement were excluded as the document did not provide complete data for these statements.

Subsidiaries, Wholly-Owned Subsidiaries, and Associates

AFC Energy PLC operates as a standalone entity with no explicitly mentioned subsidiaries, wholly-owned subsidiaries, or associates in the provided document. The company’s financial statements are prepared on a standalone basis, focusing on its operations in fuel cell and fuel processing technology. Therefore, there is no revenue breakup for subsidiaries or associates, as all revenue is attributed to AFC Energy PLC’s core operations.

• Subsidiaries: None listed.
• Wholly-Owned Subsidiaries: None listed.
• Associates: None listed.
• Revenue Breakup: 100% of revenue is generated by AFC Energy PLC’s core operations in fuel cell technology and ammonia cracking.

Physical Properties

AFC Energy’s primary physical property is its operational hub at Dunsfold Aerodrome, Cranleigh, Surrey, GU6 8TB. Below are the details of its facilities:

1. Dunsfold Aerodrome Facility

• Description: Located at Unit 71.4, Dunsfold Park, this facility serves as AFC Energy’s headquarters and primary operational center. It includes:
  • Offices: Administrative and management offices for strategic planning and operations.
  • Research and Development Centers: Facilities for designing and testing fuel cell and ammonia cracking technologies.
  • Testing Centers: Dedicated spaces for prototyping and refining hydrogen power generators.
  • Manufacturing Centers: Production facilities for assembling fuel cell systems and ammonia crackers.
• Significance: The Dunsfold Aerodrome, historically home to pioneering organizations like British Aerospace, aligns with AFC Energy’s innovative ethos. The facility supports the company’s end-to-end operations, from research to commercialization.
• Property, Plant, and Equipment (2024): Valued at £4,666,000, up from £3,756,000 in 2023, reflecting investments in manufacturing and testing capabilities.

No additional physical properties, such as other offices, plants, or factories, are mentioned in the document.

Board of Directors

AFC Energy’s Board of Directors is responsible for the company’s strategy, management, and long-term success. Below is a detailed list of the directors mentioned in the 2024 financial year, along with their roles and contributions:

1. Gary Bullard (Chairman)

• Role: Non-Executive Chairman, responsible for overseeing the Board and fostering a corporate culture aligned with AFC Energy’s mission.
• Details: Gary Bullard has been instrumental in guiding the company through its transformative 2024 year, focusing on scaling operations and commercialization. His leadership emphasizes risk management, corporate governance, and strategic expansion.
• Remuneration (2024): £106,000 (including fees and benefits).

2. John Wilson (Chief Executive Officer)

• Role: Appointed CEO in 2024, responsible for leading the company’s strategic and operational initiatives.
• Details: John Wilson was selected for his proven track record in scaling operations, aligning with AFC Energy’s focus on commercialization and global expansion. His appointment followed a rigorous selection process to replace Adam Bond.
• Remuneration (2024): Not fully detailed, as he was appointed during the year.

3. Karl Bostock (Chief Financial Officer)

• Role: Appointed CFO in 2024, responsible for financial strategy and oversight.
• Details: Karl Bostock brings expertise in financial management and scaling businesses, supporting AFC Energy’s growth objectives. His appointment was part of a strategic leadership transition.
• Remuneration (2024): Not fully detailed, as he was appointed during the year.

4. Adam Bond (Former Chief Executive Officer)

• Role: Served as CEO until his departure in 2024 to return to Australia for family reasons.
• Details: Adam Bond played a key role in AFC Energy’s transition from a research-driven organization to a commercial entity. His leadership laid the foundation for significant revenue generation in 2024.
• Remuneration (2024): £585,000 (including basic salary of £377,000, taxable benefits of £45,000, pension of £17,000, and annual bonus of £128,000).

5. Peter Dixon-Clarke (Former Chief Financial Officer)

• Role: Served as CFO until his departure in 2024.
• Details: Peter Dixon-Clarke provided invaluable financial oversight during his tenure, supporting the company’s growth and commercialization efforts.
• Remuneration (2024): £357,000 (including basic salary of £232,000, taxable benefits of £7,000, pension of £11,000, and annual bonus of £107,000).

6. Non-Executive Directors (Unnamed)

• Role: Non-Executive Directors provide oversight and strategic guidance, with fees set according to the company’s policy introduced in 2022.
• Details: The document mentions a policy for Non-Executive Director fees but does not list specific individuals or their remuneration details for 2024.
• Remuneration (2024): Fees are set to align with market standards, but specific amounts are not provided.

The Board operates under the QCA Corporate Governance Code, ensuring effective risk management, ethical standards, and alignment with shareholder interests.

Investment Details

The document does not explicitly detail passive investments held by AFC Energy PLC, such as stakes in other companies or financial instruments. The company’s investments are primarily focused on its own operations, including:

• Development Expenditure: Capitalized development costs for fuel cell and ammonia cracking technologies, recognized as intangible assets (£5,897,000 in 2024).
• Property, Plant, and Equipment: Investments in manufacturing and testing facilities at Dunsfold Aerodrome (£4,666,000 in 2024).
• Cash Deposits Policy: The company adopted a conservative Cash Deposits Policy to manage its cash reserves (£15,374,000 in cash and cash equivalents in 2024).

No specific passive investments (e.g., shares in other companies) are listed, and all financial resources are directed toward operational and strategic growth.

Future Investment Plan

AFC Energy’s future investment plans are centered on scaling operations and enhancing its technology to meet global demand for clean energy solutions. Key initiatives include:

• Scaling Manufacturing Capabilities: The company plans to invest in expanding its production facilities at Dunsfold Aerodrome to increase the output of hydrogen power generators and ammonia crackers.
• Advancing Ammonia Cracking Technology: Investments in the Hyamtec ammonia cracker to support global hydrogen supply chains, particularly in Europe (Port of Rotterdam) and the Middle East.
• Geographic Expansion: Strategic investments to enter high-growth markets like the Middle East and the US, building on the successful UK model with Speedy Hire Services.
• Cost Competitiveness: Developing hydrogen power solutions that achieve cost parity or superiority with diesel by 2030, without relying on government subsidies.
• Research and Development: Continued investment in R&D to improve fuel cell efficiency and develop next-generation ammonia cracking systems.
• Partnerships and Supply Chains: Investments in strategic partnerships, such as those at the Port of Rotterdam, to establish ammonia-based hydrogen supply chains with countries like Oman and Chile.

These plans align with AFC Energy’s goal to position itself as a world leader in hydrogen-fueled solutions, capitalizing on the global push for decarbonization and net-zero emissions.

Conclusion

AFC Energy PLC is a pioneering force in the hydrogen economy, delivering innovative fuel cell and ammonia cracking technologies to replace fossil fuel generation. With a strong presence in the UK and strategic expansion into Europe, the Middle East, and the US, the company is well-positioned to capitalize on the global demand for clean energy. Its robust financial performance in 2024, driven by hydrogen power generator sales, underscores its transition from a research-driven entity to a commercial leader. Under the leadership of a dynamic Board and with a clear focus on scaling operations, AFC Energy is poised to shape a sustainable future, making it a key player in the global energy transition.