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What: AFC Energy (LSE: AFC), the industrial fuel cell specialist, has signed a heads of agreement with Daniel Inc., a South Korean power plant owner, for a 1MW fuel cell system. Shares of AFC energy were up 10% in early trade.
So what: This marks the second major advance by AFC Energy in South Korea — a key target market — in the space of a single week. Under the terms of the latest deal, a deposit of £1.25m will be payable to AFC Energy upon the signing of a formal contract and supply agreement. The contract will also include a follow-on option for a further 3MW system at a second site, depending on performance, which could eventually lead to sales of $15m.
Now what: South Korea has a clean energy incentive programme with a goal of becoming one of the world’s largest producers of renewable energy. AFC Energy’s chief executive, Ian Williamson, said that he expects “many more orders to come” from the country.
