AFC Energy Plc

MOU signed with Dubai Carbon for estimated 300MW

RNS Number : 1546L
AFC Energy Plc
23 April 2015
 

23 April 2015

 

 

AFC Energy PLC

("AFC" or the "Company")

 

 

AFC Signs Landmark Memorandum of Understanding with Dubai Carbon at WETEX 2015 for an estimated 300MW of AFC Fuel Cells in Dubai    

 

AFC Energy plc (AFC.L), the industrial fuel cell power company, is pleased to announce it has today signed a Memorandum of Understanding with Dubai Carbon Centre of Excellence ("Dubai Carbon") at the 2015 Water, Energy, Technology and Environment Exhibition (WETEX) in Dubai.  The MOU, provides a framework for the assessment and potential deployment of an estimated 300MW of fuel cell generation capacity in Dubai.    

 

Highlights

 

·    300MW of fuel cell capacity being assessed for deployment in Dubai by the end of 2020, making this the largest single fuel cell deployment programme in the world

·    Joint venture to be negotiated between Dubai Carbon and AFC for commercial projects

·    Potential for multi-billion dollar revenue stream over life of projects for the joint venture

·    Dubai Carbon and AFC to engage with Dubai-based clean energy funds to finance projects taken forward

·    Significant economic opportunity to monetise not only energy generated from the fuel cell, but also from the sale of water by-product from the catalytic process in ways which has never been monetised before

·    Dubai Carbon is owned by Emirates National Oil Company (ENOC), Dubai Electricity and Water (DEWA) and Dubai Aluminium Company (DUBAL)

  

This landmark deal again reaffirms AFC's transition to a global energy company working in collaboration with some of Dubai's leading companies.  Dubai Carbon and AFC will initially assess the potential for deployment of the fuel cell within projects such as Dubai Expo 2020, The World Development by Nakheel, and major infrastructure projects including Al Maktoum International Airport.

 

Dubai Carbon and AFC will commence the undertaking of initial pre-feasibility studies across these and other opportunities such that we could see developments commence across the Emirate in the very near future.  It is envisaged that once projects are identified for development under the pre-feasibility studies, Dubai Carbon and AFC will form a joint venture to deliver the projects.  The joint venture would look to operate the projects and dispatch power and water supply produced from the fuel cell facilities. 

 

The joint venture will work closely with Dubai Electricity and Water Authority (DEWA), Emirates National Oil Company (ENOC) and Dubai Aluminium Company (DUBAL), in assessing these opportunities, and with local funding sources to support the equity and debt financing arrangements for the commercial projects.

 

Dubai Carbon's and AFC's collaboration under the MOU creates a significant platform for both companies to capitalise on the immediate opportunities for deployment and growth in the hydrogen economy across the UAE.  

 

Mr Adam Bond, AFC's Chief Executive Officer, said: "It is a great privilege to be given the opportunity to work in partnership with several of Dubai's leading and most innovative organisations to deploy AFC's leading alkaline fuel cell technology into Dubai.  This MOU not only reflects a landmark day for AFC and its business as it consolidates its fuel cell commercialisation strategy, but also reflects support for HH Sheikh Mohammed bin Rashid Al Maktoum's initiative 'Green Economy for Sustainable Development'; reinforcing the prominent role Dubai plays in driving a cleaner and sustainable economy today, and into the future.  I am honoured AFC's fuel cell will play an important part in Dubai's future energy mix with today marking the start of a long and fruitful relationship with Dubai Carbon and the Emirate of Dubai." 

Bond added, "At AFC, I set the ambitious target of achieving 1 GW (1,000 MW) of capacity under development by the end of 2020 and this MOU brings us excitingly closer to our target but I would like to stress that we still have a long way to go."

 

Mr Ivano Iannelli, Dubai Carbon's Chief Executive Officer, said: "In an economy as dynamic as Dubai's, innovative technologies such as fuel cells, have a close fit to numerous activities and realities, with a specific regional relevance. We are looking forward to piloting the commercial readiness and technological effectiveness through the partnership with AFC. "

 

The agreement was an official part of the DEWA Green Week activities during the 2015 Water, Energy, Technology and Environment Exhibition (WETEX) in Dubai.

Ends

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For further information, please contact:

AFC Energy plc

Adam Bond (Chief Executive Officer)

 

 

+44 (0) 20 3697 1209

Zeus Capital Limited - Nominated Adviser and Joint Broker

John Treacy, Phil Walker                      

Alex Davies, John Goold  

                             

 

+44 (0) 20 7533 7727

 

M C Peat & Co LLP - Joint Broker

Charlie Peat

 

+44 (0) 20 7104 2334



Lionsgate Communications - Public Relations

 

Jonathan Charles, Rachel Rigby

Laetitia Tregoning

 

 

 

+44 (0) 20 3697 1209

+971 (0) 567 242154

 

About AFC Energy

 

AFC Energy plc is in the process of commercialising its proven low-cost alkaline fuel cell system, which converts hydrogen into 'clean' electricity. AFC's key project POWER-UP will demonstrate the world's largest alkaline fuel cell system at Air Products' industrial gas plant in Stade, Germany. The date for the demonstration of the 240kW "KORE" system has been fast tracked to December 2015, representing the final phase of AFC's pre-commercialisation technical development programme and creating the platform for the Company's global commercial fuel cell deployment.  AFC has also recently announced the development of projects in Asia and the Middle East.  For further information, please visit our website: www.afcenergy.com

 

About Dubai Carbon

The Dubai Carbon Centre of Excellence was launched by the Dubai Supreme Council of Energy in partnership with the United Nations Development Programme (UNDP) in 2011 as a public-private partnership to fast-track clean energy project development in the last years of the Kyoto Protocol.

The Centre is the first body of its kind in the region and aims to leverage Dubai's economic potential in carbon through the Clean Development Mechanism and other best practices. The DCCE is a key component of the Supreme Council's efforts to develop a sustainable-energy economy for Dubai and plans to offset several million metric tons of carbon annually by selling carbon credits on the international market.

 

Dubai Carbon conceptualises, manages, executes and monetises greenhouse gas reduction measures. By doing so, it addresses climate change and promotes sustainable development across the region in an economically viable way. The Emirate of Dubai is becoming a low carbon economy and Dubai Carbon is both the enabler and knowledge repository of this process.

 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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