AFC Energy narrows loss as it completes Gen 2 cell development

Industrial fuel cell power company AFC Energy announced its final results for the year to 31 October on Friday, narrowing its operating loss to £6.3m from £8.6m in 2015.

The AIM-traded firm managed to raise £3.6m through a placing and offer for subscription in January 2016, and held cash reserves at year-end of of £2.9m, up from £1.8m at the end of the prior financial year.

During the year, the company successfully commissioned its first industrial-scale 240kW fuel cell system, beginning the sale of power at Stade in Germany.

It also entered into a strategic technology collaboration with Industrie De Nora, described one of the largest manufacturers of electrolysers, electrodes, coatings and electrochemical solutions.

On the technical front, AFC said it made a “material improvement” in its fuel cell longevity and availability, and reduction of stack cost, through the Generation 2 fuel cell development programme.

It reportedly commenced commercial fuel cell deployment and detailed discussions with several international power utilities, industrial groups and government bodies, and entered into a strategic engineering partnership agreement with plantIng in support of fuel cell balance of plant engineering and design.

“2016 was an important year of consolidation for the company with material improvements not only in the fuel cell technology platform, but also in the dialogue with several key commercial and strategic partners for AFC Energy,” said CEO Adam Bond.

“The corporate value gained from AFC Energy's collaboration with De Nora, and the commencement of commercial project developments with Peel Environmental, cannot be undervalued and positions the company well for an accelerated programme of activities in 2017.”

The company had been busy since the year ended as well, reporting the successful completion of the Generation 2 fuel cell system, and the strategic partnership with Peel Environmental mentioned by Bond to assess the techno-economic feasibility for fuel cell deployment in the UK's ‘Northern Powerhouse’.

It raised £8.1m before expenses through a placing, subscription and open offer to shareholders, with Schroders the largest investor in the successful £6m share placement and subscription.

The £2.1m open offer to shareholders was oversubscribed by 56.9%.