AFC Energy acquires hydrogen storage assets from Octopus Hydrogen
AFC Energy (AIM: AFC), a leading provider of hydrogen power generation technologies, has announced its acquisition of key UK mobile hydrogen storage and distribution assets from Octopus Hydrogen, a subsidiary of the Octopus Energy Group. The financial details of the deal remain undisclosed, but this acquisition marks a significant step in AFC Energy’s strategy to strengthen its logistics capabilities in the hydrogen fuel sector in the UK.
Immediate Logistics Capability for Hydrogen Fuel Supply
The newly acquired assets are poised to enhance AFC Energy’s logistical support for its growing number of H-Power Generator sets across the UK, such as those used in Speedy Hydrogen Solutions. This acquisition integrates essential elements of the hydrogen value chain, reinforcing AFC Energy’s leading position in the UK hydrogen market.
Enhancing Fueling Propositions and Supply Chain
With investments in ammonia cracking and now hydrogen storage and logistics assets, AFC Energy is uniquely positioned to offer comprehensive fueling solutions to its customers. These assets can accept hydrogen from various sources, including third-party electrolysers and AFC Energy’s ammonia crackers, enabling the company to deliver end-to-end hydrogen fueling solutions.
Details of the Acquired Assets
The acquired assets include two NanoSun Pioneer Mobile Hydrogen Refueling Stations, mobile trailers for station transport, and a hydrogen compressor. These assets are capable of supporting the fueling needs of a fleet of H-Power Generators, underlining AFC Energy’s commitment to developing robust hydrogen fueling infrastructure.
Support for Speedy Hydrogen Solutions
This acquisition also supports Speedy Hydrogen Solutions, AFC Energy’s joint venture with Speedy Hire in the UK and Ireland. The assets play a crucial role in this venture, aligning with AFC Energy’s investment strategy.
Strategic Intent and Market Positioning
While AFC Energy does not intend to become a primary hydrogen logistics provider, this early investment in storage and distribution assets is a strategic move to support the evolving hydrogen power generator market. The company aims to generate incremental revenue through hydrogen fuel logistics services on a reasonable scale in the UK and Ireland.
CEO’s Vision for the Future
Adam Bond, Chief Executive at AFC Energy, expressed his enthusiasm about this investment, stating, “The logistics of distributing hydrogen is the next stage in our ambition to commercially demonstrate the viability of hydrogen as a displacement to diesel in off-grid power environments.”
In summary, AFC Energy’s acquisition of Octopus Hydrogen’s assets represents a pivotal development in enhancing the UK’s hydrogen supply chain, further positioning the company as a key player in the transition towards sustainable off-grid power solutions.