AFC Energy forms hydrogen joint venture with Industrial Chemicals
AFC Energy PLC on Friday said it has agreed to form a 50:50 joint venture with Industrial Chemicals Group Ltd to produce hydrogen from ammonia using its proprietary ammonia cracking technology.
The Cranleigh, England-based provider of hydrogen power technologies said the venture aims to supply hydrogen at a ‘disruptive’ market price without relying on UK government subsidies.
First revenues are expected in early 2026, subject to permitting, with an initial production target of up to 400 kilograms of hydrogen per day.
Output capacity is set to expand through the sale of AFC Energy’s portable Hy-5 ammonia cracker units to the venture. Each containerised unit is capable of generating up to 500 kilograms per day.
AFC said the JV will combine its cracking technology with ICL’s ammonia procurement and logistics expertise, creating a lower-cost, low-carbon hydrogen supply chain. The venture is expected to acquire AFC’s pilot ammonia cracking plant and hydrogen compression system later this year.
‘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 compared to high capital costs in storing hydrogen,’ said Chief Executive Officer John Wilson.
AFC Energy shares were 7.1% higher at 16.70 pence in London on Friday afternoon.
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