Clean power company AFC Energy has delivered its first fuel cell electricity generating system to Industrial Chemicals Limited (ICL), a UK commodity chemicals producer.

AFC is installing the world's largest alkaline fuel cell energy generation system at ICL's plant in Essex, UK.

The shipment for the 1.0 megawatt (MW) commercial-scale project was signed last year.

A European Union grant of €6.1m will support the project from April when the first delivery for a skid-mounted Beta fuel cell system is expected to be installed and start supplying small quantities of power to the chemicals works.

The system will use waste hydrogen, produced as a by-product at the chemicals works, as fuel to generate clean energy.

It will test and qualify the hydrogen supply and site infrastructure ahead of the installation of the larger system in stages later this year.

AFC's fuel cell system will eventually provide up to 1.0MW of clean, efficient electricity generation at point of consumption, reducing reliance on grid-supplied electricity by up to 20%.

Chief Executive Officer, Ian Williamson, said: "Our project with ICL is a flagship venture for us and the UK and we are pulling out all the stops to get it underway ahead of schedule.

"Although the EU grant funding will not commence until April, we decided to press ahead with the first Beta system to demonstrate to the world our serious intent and ability to generate low-cost electricity using purpose-designed industrial fuel cells.

"With the progress we have already made with our first manufacturing facility, which opened in September 2012, and the inroads being made to extend electrode life beyond the six month milestone as announced last month, this achievement gives us confidence to begin to implement plans for opening international markets."

Shares fell 0.75% to 33.25p at 10:35 Monday.

RD

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