AFC in new Thai deal

AFC Executes Heads of Agreement with Bangkok Industrial Gas for 10MW of Fuel Cell Development in Thailand

AFC Energy plc (AFC.L), the industrial fuel cell power company, is pleased to announce it has executed its first Heads of Agreement in Thailand to initiate a programme of commercial fuel cell deployment with a leading Thai industrial gas company, Bangkok Industrial Gas Co. Ltd (“BIG”).

Highlights

• Initial 10MW of installed AFC fuel cell capacity to be developed across three phases
• First phase of 2MW to be installed by the end of the 2016 (subject to permitting)
• Joint venture to be evaluated during 2015 between BIG and AFC to develop the initial

  fuel cell facility from BIG’s own sources of hydrogen in Rayong Province, Thailand

  The Heads of Agreement establishes a framework for the assessment and deployment of an initial 10MW of fuel cell capacity utilising surplus hydrogen from BIG owned hydrogen pipelines and related facilities in the Rayong Province of Thailand. The Rayong province is a high consumer of energy; the ability to utilise surplus hydrogen from BIG to create a new, clean source of energy for the region is fully consistent with the Thai Government’s policy of clean energy development and facilitating the deployment of new and innovative technologies within the country’s energy mix.

  BIG and AFC will over the next few months be actively evaluating the possibility for a successful deployment of the AFC fuel cells into the Rayong Province through initial techno- economic feasibility studies before committing any capital expenditure to the projects.

  BIG and AFC have agreed an indicative (cumulative) programme of fuel cell deployment in accordance with the following schedule:

1. (i)  2MW – operational by the end of 2016
2. (ii)  5MW – operational by the end of 2017
3. (iii)  10MW – operational by the end of 2018

There is clear potential that following the successful completion of this programme, both BIG and AFC will assess a number of other fuel cell deployment opportunities across Thailand.

Mr Adam Bond, AFC’s Chief Executive Officer, said: “We are extremely pleased to be working with such a prominent and innovative Thai partner in BIG in the deployment of AFC’s world leading alkaline fuel cell into Thailand. The country has long been identified as

an important location for AFC, both in terms of the market for fuel cells, but also as a possible location for long term manufacturing and fabrication. Our collaboration with BIG is a further important statement of intent to focus our business on short term industrial fuel cell deployment, particularly in Asia, with this Heads of Agreement further demonstrating the progression of AFC “out of the lab” and into the commercial sector.”

Mr. Piyabut Charuphen, BIG’s Managing Director, said: “BIG continues to strive to develop its business in ways that not only leverage our market leading position in industrial gases, but does so in a sustainable and environmentally sensitive manner. The collaboration with AFC Energy delivers on not only our desire to partner with one of the world’s leading fuel cell developers, but also create clean and sustainable power for the people of Thailand. We are very pleased to be partnering with AFC to evaluate this exciting initiative”.