AFC Energy eyes data centre market as ABB backs fundraising

AFC Energy PLC (LON:AFC) is to deepen its relationship with ABB Schweiz AG, the provider of electric vehicle charge points, electrification and digitalisation technologies.

AFC, a specialist in hydrogen power generation technologies, said ABB has subscribed for £3.25mln in newly issued AFC shares, while Dutco Group, a Dubai-based conglomerate, has subscribed for £1.5mln of new shares, resulting in the issue of 7.36mln new shares in aggregate.

AFC has also placed 46.9mln shares with institutional investors to raise a further £30.25mln.

All the newly issued shares (including the subscription shares) have been priced at 64.5p. AFC shares closed at 68p (mid-market price) last night.

The newly issued shares represent around 7.4% of the AFC enlarged share capital.

The money raised will be used to support the continued product development of AFC Energy and ABB’s next-generation high power sustainable electric vehicle (EV) charging solutions; develop new power solutions using AFC’s alkaline fuel cell technology platform, including the high growth global data centre market in collaboration with ABB; and support the continued development of the company’s scalable manufacturing capacity to address possible future growth in system demand.

AFC Energy and AFC have signed a new agreement to extend their partnership to include the power-hungry data centre market.

The existing partnership between the two will be broadened to include the testing, design and integration of AFC Energy’s alkaline fuel cell technology into ABB’s data centre system portfolio to provide a zero-emission, sustainable turn-key power solution for the growing number of current and prospective data centres currently servicing the world’s data storage and processing requirements.

It is expected that once demonstrated, the alkaline fuel cell system will form an integral part of the portfolio of technologies available to ABB in meeting its data centre customer requirements and therefore provides a strong route to market for AFC Energy’s fuel cell platform in this sector.

AFC said ABB’s investment into AFC Energy demonstrates the corporate commitment both companies place in their e-Mobility partnership that seeks to set new standards in zero-emission high power EV charging.

“The investment in AFC Energy brings an opportunity to further the advancement of technologies that can ultimately enable a wider reach to remote off-grid locations. AFC Energy’s goals to deliver clean energy solutions perfectly align with ABB’s commitment to innovation and enabling low carbon societies, making them an ideal solution partner,” said Frank Muehlon, the head of ABB’s global business for e-mobility infrastructure solutions.

Adam Bond, AFC’s chief executive officer, said both companies are confident that ABB’s position in the e-mobility and data centre sectors will be further enhanced by the integration of AFC’s alkaline fuel cell technology.

“We continue to receive strong customer enquiries into our partnership from all over the world, confirming we are working with the right partners, on the right technology, at the right time to support society’s accelerated drive towards a more sustainable world,” Bond said.

Story by ProactiveInvestors