AFC Energy announces 85% cost reduction for hydrogen generators

Published 16/07/2025, 17:44
AFC Energy announces 85% cost reduction for hydrogen generators

LONDON - AFC Energy PLC (AIM:AFC), a hydrogen power generation solutions provider, reported Wednesday it is developing a significant cost reduction strategy for its hydrogen fuel cell generators as part of its interim results for the half year ended April 30, 2025.

The company disclosed plans to reduce costs of its hydrogen generators by 85% compared to those built in fiscal year 2024, supported by a strategic supply agreement with Volex. This cost reduction initiative forms part of AFC Energy’s strategy to achieve cost parity with diesel for offsite power generation by 2026 without government subsidies.

AFC Energy also announced a Joint Development Agreement with an unnamed S&P 500 industrial company to develop ammonia crackers for portside and industrial applications, and a joint venture with Industrial Chemicals Group to produce and sell hydrogen at what it describes as "a market disruptive price."

The company reported a loss after tax of £10.15 million for the half-year period, compared to £8.32 million in the same period last year. Revenue decreased to £17,000 from £408,000 in the prior year’s first half.

Cash reserves stood at £4.26 million at the end of April 2025, down from £15.37 million at October 31, 2024. The company stated that as of June 30, 2025, cash had further decreased to £2.6 million.

AFC Energy also revealed plans to raise approximately £20 million through a placing and subscription, including £0.5 million from directors and a retail offer of up to £5 million.

The company recently launched the HY-5, which it describes as "the world’s first portable cracker" under its Fuel as a Service (FaaS) commercial model announced in April.

According to the press release statement, AFC Energy’s new leadership team, which joined six months ago, is focusing on accelerating commercialization of its technology through a "market push" strategy rather than relying on government subsidies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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