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Shares of AFC Energy increased by more than 10% in early trade, after the fuel cell technology company signed a Memorandum of Understanding (MOU) with South Korean hydrogen supplier Chang Shin to use its excess hydrogen for power generation.
The MOU, for multiple fuel cell systems with a capacity of up to 5MW, is AFC’s first commercial agreement in South Korea. AFC called South Korea “one of the world’s fastest growing markets” for fuel cell power generating systems.
The deal will be structured as an energy supply contract, under which it will install and operate its low-cost fuel cell systems at Chang Shin’s sites in return for long term fees. The two companies will work on finalising a definitive contract within six months of the MOU.
Chang Shin has an abundance of hydrogen available capable of generating in excess of 5MW of saleable clean energy.
Ian Williamson, the chief executive of AFC Energy, said: “We look forward to working with Chang Shin and expect to clinch further new business in this market in the near future.”
South Korea is one of AFC’s key target markets, where excess hydrogen is produced as a byproduct of its large chemicals industry. Industry and utilities are adopting fuel cells to reduce reliance on imported fossil fuels.
Mark does not own shares in AFC Energy.