Alkaline Fuel Cell Power Corp., a developer and manufacturer of alkaline fuel cell heat and power systems for residential, industrial, and commercial markets worldwide, has entered into definitive agreements to acquire 100 percent of the Combined Heat and Power (CHP) generation business of AI Renewable 2018-I Limited Partnership, AI Renewable 2020-I Limited Partnership, and 2191 Yonge Ltd. (collectively, “AI”).
AI creates both electricity and heat using a clean and renewable single fuel source energy technology. Energy production that is consistent and efficient leads in cost savings for the client and a reduction in greenhouse gas emissions. The Company anticipates concluding the Transaction within 30 days from the date hereof, subject to certain closing conditions.
After the Acquisition is completed, the AI Business will generate instant recurring, long-term gross operating income from a current active account. The AI Business currently has a pipeline of projects that, if successfully completed, will generate extra gross operating income. Securing the pipeline of projects continues to be contingent upon mutual agreement with potential clients.
The high-efficiency CHP system offers on-site energy that is stable, sustainable, and efficient 24 hours a day. It is adaptable not only to home consumers, but also to commercial and industrial ones. Additionally, the Company has identified technology that will enable them to switch their existing combined heat and power systems to hydrogen and AFCP fuel cells, allowing AFCP to grow exponentially while earning money.
AI’s pipeline now includes approximately 30 potential combined heat and power (CHP) projects at various stages of development, including proposals, letters of intent, and one power purchase agreement that is set to enter the engineering, procurement, and construction (EPC) phase. The anticipated capital investment required to bring the pipeline of potential CHP plants online within the next 24–36 months is $50,000,000. When all of the prospective CHP systems are operational, it is predicted that gross revenue may reach roughly $16.61 million, EBITDA could reach approximately $7.68 million, and net income could reach approximately $1.64 million. These are forward-looking estimates that are subject to the assumptions detailed in the following forward-looking disclaimer.
Prices of electricity and CO2 emissions linked with conventional energy producing technologies continue to climb gradually. The requirement for on-site, efficient, and reliable energy sources is becoming increasingly evident. As the market leader in CHP energy generation, AFCP will have an enormous opportunity to grow revenue from its fuel cell products in the coming years by installing systems in existing locations and selling units to other CHP owners in order to secure a significant market share of the nearly 10,000 high rise buildings in Canada and 163,000 high rise buildings in major markets worldwide.
“Alkaline Fuel Cell Power Corp. continues to progress towards commercialization of our micro-combined heat and power (“Micro-CHP”) system. The integration of AI’s CHP business along with key members of management will help AFCP accelerate our milestone timelines and the transition of existing CHP to a clean zero-emission hydrogen powered energy solution with immediate revenue and a very large project pipeline, setting the stage for growth worldwide,” said Mr. Matthew Fish, Interim Chief Executive Officer of AFCP.
Added Dr. Elliot Strashin, Chairman of AI Renewable, “Our renewable investment fund, driven by its strong core values, is committed to investing in clean, green and efficient energy projects. We are confident that AFCP is the perfect partner to build off the foundation that AI Renewable has created and assume our mission of reducing greenhouse gas emissions for meeting heating and electricity needs across North America.”
