AFC Energy to form joint venture with Industrial Chemicals Group

(Sharecast News) - Hydrogen power generation firm AFC Energy said on Friday that it has agreed to form a joint venture with British chemical manufacturing and distribution company Industrial Chemicals Group.

Once established, the 50/50 joint venture will initially acquire AFC Energy's pilot ammonia cracking plant and hydrogen compression system in Q425, with initial revenues expected in early 2026.

The AIM-listed group stated this will be followed by the sale of Hy-5 units to the joint venture once productionised.

Chief executive John Wilson said: "The establishment of the JV with ICL is an exciting step in delivering our strategy to deliver commercial viability of the hydrogen economy, without reliance on Government subsidies. We have been working with ICL for some time to develop the JV and are delighted to collaborate with a partner of ICL's capability and experience to deliver low-cost hydrogen at a market-disruptive price.

"In anticipation of regular imports of green ammonia becoming widely available in the UK from 2027, the JV is well positioned to take advantage of the relative ease with which ammonia can be stored in low-cost and low pressure liquified gas tanks compared to high capital costs in storing hydrogen and further benefit from significant cost advantages versus UK production from electrolysis."

As of 0810 BST, AFC Energy shares were up 11.99% at 17.47p.

Reporting by Iain Gilbert at Sharecast.com