AFC wins 50mw fuel cell contract in Korea
AFC Energy has signed a formal agreement to develop 50Mw of fuel cell power in Korea.
The deal with Korean companies Samyoung and Changshin is forecast to generate revenues of US$1bn in its first ten years.
AFC will own 40% of the project, with Samyoung (45%) and Changshin (15%) the remainder.
The UK firm said it was a landmark deal that confirmed its transition from research and development to a global energy company working in collaboration with two of South Korea’s most reputable companies.
A first phase will see 5Mw of power come on stream by the end of 2016, with the 45Mw stage 2 scheduled for commissioning in 2019.
Negotiation of the suite of project agreements is ongoing to thrash out the details of how much each company will pay, though the plan is to arrange project finance for the joint venture.
Next steps will be a feasibility study and a more detailed project engineering assessment, further details of which will be supplied in due course.
AFC Energy is expected to sell alkaline fuel cell equipment into the joint venture and provide technical and operational advice with Samyoung managing engineering work while and Changshin, will supply hydrogen, land and logistical support.
Adam Bond, chief executive, said: With Samyoung’s entrepreneurial drive and respected international EPC contracting experience spanning Europe, the Middle East, North America and Asia, together with Changshin’s strong growth trajectory in South Korea, we are exceptionally well placed to succeed in this historic agreement for AFC.”