AFC Energy has announced the renewal of its collaboration with Air Products GmbH, the world’s largest hydrogen producer.
The agreement includes a five-year hydrogen supply contract and a site lease at Stade, Northern Germany. This strategic move positions AFC Energy to strengthen its foothold in the European hydrogen market, particularly in Germany, which continues to witness substantial growth in both market size and hydrogen availability.
The Stade facility will serve as AFC Energy’s preferred location for H-Power Generator factory acceptance testing (FAT), paving the way for increased system deployments. The site, originally built in 2015 for the EU co-funded “Power-Up” program, will now be repurposed to conduct FAT for the H-Power Generator series of fuel cell systems. The existing hydrogen supply infrastructure and grid connection at the Stade facility make the repurposing process cost-effective, requiring minimal investment.
One of the key factors influencing the decision to position FAT in Germany is the significantly lower price of hydrogen fuel compared to the UK. Additionally, Germany’s strong commitment to decarbonization and robust investments in the hydrogen sector make it an attractive market for AFC Energy’s growth plans.
Germany’s advanced supply chain for fuel cell components, coupled with its abundance of automotive and skilled manufacturing facilities, makes it well-suited to support AFC Energy’s projected fuel cell pipeline. As the demand for zero-emission off-grid power generation rises worldwide, the Stade facility will become a catalyst for the delivery of H-Power Generators in one of the fastest-growing hydrogen markets globally.
Adam Bond, the Chief Executive Officer at AFC Energy, expressed his enthusiasm for the repurposing of the Stade facility, emphasizing the solid footprint it creates in Germany and the broader EU hydrogen market. The move not only enhances AFC Energy’s market presence but also facilitates a cost-effective path for the H-Power Generator factory acceptance testing program.
The collaboration renewal with Air Products and the strategic focus on Germany align with the growing interest in hydrogen as a decarbonized fuel and its potential to revolutionize clean energy solutions. With Germany’s active involvement in advancing the hydrogen economy, AFC Energy’s commitment to the market bolsters the overall effort to drive the adoption of green hydrogen as an energy carrier.
The hydrogen sector’s continuous growth in Germany is indicative of the country’s ambitious sustainability goals and its role as a pioneer in embracing hydrogen as a clean energy solution. The AFC Energy and Air Products collaboration is set to play a significant role in Germany’s hydrogen journey, contributing to the country’s position as a leader in the global hydrogen revolution.