AFC Energy and Speedy Hire – agreement to rollout hydrogen generators through equipment hire sites
The leading provider of hydrogen-powered generator technologies AFC Energy (LON:AFC) has today announced a very interesting Joint Venture with the UK’s leading tools and equipment hire services company Speedy Hire (LON:SDY).
AFC Energy, which gained a £4.8m UK Government Grant a few days ago, provides hydrogen energy solutions, to provide clean electricity for on and off grid power applications.
Its fuel cell technology is now deployable as electric vehicle chargers, off-grid decentralised power systems for construction and temporary power with emerging opportunities across maritime, data centres and rail as part of a portfolio approach to the decarbonisation of society's growing electrification needs.
Operating from some 180 fixed sites and selected B&Q stores across the UK and Ireland together with a number of on-site facilities at client locations, Speedy Hire provides tools and equipment hire services to a wide range of customers in the construction,
infrastructure, industrial, and support services markets, as well as to local trade, and retail.
The rollout of AFC hydrogen-fuelled generators into the UK construction and temporary power markets, will be speeded by the 50/50 JV being started shortly with an initial purchase of 30kW H-Power Generators for a consideration of some £2m in aggregate.
The first of these systems are expected to be available for Speedy’s customers later this year.
Beyond this initial commitment, Speedy and AFC plan to increase orders for H-Power Generators in-line with the expected growing demand for zero-emission power across the UK construction and temporary power market.
Adam Bond, Chief Executive, AFC Energy, said:
"The pressure to deliver zero emission power on construction sites here in the UK and overseas has seen strong growth in demand for AFC Energy's H-Power Generators.
Our collaboration with Speedy builds on the successful H-Power Tower launch last year and subsequent field-based deployments, many of whom are customers of Speedy, making our proposed collaboration all the more relevant."
Broker’s Opinion – indications of a material upside to the share price
Ahead of the £116m capitalised group announcing its Interim results shortly, analyst Robin Byde at Zeus Capital, considers that the decarbonisation of major projects in the UK is gathering pace and he believes that this is a major step forward for commercialisation at AFC, addressing a multi-billion-pound market.
He notes that he has a discounted cashflow-based valuation of 100p on the AFC shares, giving a massive upside for the share price which opened 12.5% better at 16.5p this morning.