AFC Energy (AIM: AFC) has secured an order from Centrica (LSE: CNA), reserving 250 KiloWatts of fuel cell systems for use in a flagship project. The commercial terms of the agreement will be agreed following the completion of AFC’s development of its 50kW fuel cell system in 2011.
"We are delighted to receive this order now which effectively gives Centrica an option over our future capacity when we start to roll out our 50kW fuel cell systems”, AFC Energy chief executive Ian Balchin said.
The fuel cells will provide Centrica with a source of carbon-free electricity generation, having a conversion efficiency of up to 60%, According to AFC, this is far greater than any fossil fuel generation on the market today. "We have looked at a number of technologies that have the potential to generate low-cost electricity with zero carbon dioxide emissions and the fuel cell system from AFC Energy has the potential to meet our requirements for a specific project”, Centrica’s Brian Amos commented.
AFC is currently developing a 50kW fuel cell system, as the initial phase of its showcase hydrogen power station. The project, which is currently being developed through a partnership between AFC, WSP Group (LSE: WSH) and privately held Air Products Ltd, ultimately aims to build a 1MegaWatt ‘SuperGreen’ hydrogen-power station based on the AFC technology.
Disclosure: The author holds no positions in the company