AFC Energy signs scale-up agreement with BK Gulf
By Josh White
Date: Tuesday 17 Nov 2020
(Sharecast News) - Hydrogen power technology company AFC Energy has signed a binding agreement with BK Gulf, it announced on Tuesday, to support the immediate scale-up of manufacturing capacity for delivery of its proprietary 'H-Power' fuel cell system.
The AIM-traded firm said BK Gulf, a wholly owned subsidiary of Middle East conglomerate Dutco Group, is one of the region's largest specialist mechanical and electrical contractors.
It said BK Gulf would invest in a detailed value engineering process to further optimise the H-Power system's layout, and drive cost reduction, starting immediately.
Existing capacity would deliver several hundred fitted-out containerised modules per annum, to address future customer demand, with the first fabricated units expected in the first quarter of 2021.
"Today's agreement with BK Gulf is a further important step in cementing AFC Energy's manufacturing strategy aligned with the growth in our commercial pipeline and in bringing down response time and cost in meeting customer expectations," said chief executive officer Adam Bond.
"Dutco Group and BK Gulf have long been strong allies of AFC Energy in the region and with their leading engineering and fabrication capability, are an ideal partner in supporting a strong commitment to the growth of the Hydrogen economy in the Gulf region and world-wide.
"We look forward to delivering on our partnership with BK Gulf and in working with their team in taking our fuel cell system to market."
At 1152 GMT, shares in AFC Energy were up 7.11% at 24.21p.
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