LONDON (ShareCast) - Industrial fuel cell power company AFC Energy has inked an agreement with two South Korean firms to deploy an initial 50MW of generation capacity at Daesan, South Korea.
The new joint-venture (JV), in collaboration with Samyoung Corporation and Changshin Chemical Co., is expected to generate revenues of approximately $1bn over ten years, assuming gross output of 50MW from the fuel cell park.

The first of two phases is forecast to be operational by the end of 2016, subject to permissions, with a second stage set to come on-line by the end of 2019.

AFC will hold a 40% stake in the JV and be responsible for providing alkaline fuel cell equipment. Samyoung will have 45% and contribute engineering and procurement. Changshin, with ownsership of the remaining 15%, will be tasked with supplying hydrogen and logistical support on site.

The exact details of the investment each party will make in support of the JV is still subject to negotiation but it is expected that each party will make an upfront contribution, either in cash or in kind, AFC said in a statement.

The parties also intend to secure project finance for the joint venture.

Shares of the AIM-listed outfit ended the session 22.54% higher at 10.88p.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE