AFC Energy and Speedy Hire launch JV for hydrogen-powered generators
AFC Energy, a leader in hydrogen power generation technologies, is proud to announce its Joint Venture Agreement (JVA) with Speedy Hire Plc, establishing Speedy Hydrogen Solutions Ltd (SHS). This new venture aims to provide the UK and Irish markets with exclusive access to AFC Energy’s innovative H-Power Generators.
Key Aspects of the Joint Venture
SHS, a 50:50 Joint Venture, will be the first of its kind to focus exclusively on hydrogen-powered generator plant hire. The venture is expected to revolutionize the market, with initial H-Power Generator sales to SHS projected to reach up to £4.7m in the first year. The exclusivity agreement is subject to SHS meeting annual growth in minimum order quantity over the first three years.
Background and Market Potential
Speedy Hire, the UK and Ireland’s leading provider of tools, equipment, and services, sees strong customer demand for sustainable portable power solutions. This demand aligns with projects like HS2, which aim to eliminate diesel generators by 2029. Since announcing the proposed launch of SHS in July 2023, both companies have confirmed strong customer interest.
Funding and Operational Details
The JVA outlines the terms of governance, with both Speedy and AFC Energy having the right to appoint two Directors to the Board of SHS. The initial equity injection into SHS is £1.25m, funded by both companies from their cash reserves. Additional funding will be in the form of commercial interest-bearing loan notes to support the increased deployment of H-Power Generators.
Leadership Perspectives
Dan Evans, Chief Executive at Speedy Hire, highlighted the venture’s alignment with Speedy’s Velocity strategy and commitment to net zero by 2040. Adam Bond, Chief Executive at AFC Energy, expressed confidence in SHS’s ability to support the UK and Irish construction sector’s transition to sustainable off-grid power.
The collaboration between AFC Energy and Speedy Hire through SHS signifies a substantial advancement in sustainable power solutions in the construction sector, marking a turning point in the industry’s move towards decarbonization.