|AFC 12m share price (click to enlarge)|
Friday, 15 November 2019
AFC Energy - Update
It's just over two months since I decided to add this small AIM-listed hydrogen fuel play to my portfolio.
In the past couple of weeks there have been some significant developments.
First, at the start of this month, the company announced four new brands as it seeks to push forward its hydrogen-powered technology. It will launch HydroX Cell (L) which is a highly efficient alkaline fuel cell for use in heavy-duty industrial applications. It will also launch the HydroX Cell (S) for use in mobile and stationary applications.
The third brand is H Power which is a group of power systems which includes an off-grid electric vehicle (EV) charger and the fourth is AlkaMem, a range of exchange polymer membranes inside the fuel cell which have a wide range of applications including energy storage and fuel synthesis.
AFC have been working closely on development in collaboration with Industie de Nora - a world-leading electrolyser manufacturer - in Italy over the past three years and have now received welcome news that the membrane exceeded internal expectations. AFC say this development offers opportunities in new market segments that it has previously been unable to penetrate and that revenues in this sector amount to over $1bn per year.
The market has welcomed these developments and the share price has soared from 5p to close at 17.5p at the end of this week - a rise of 250%!
AFC Chairman John Rennocks purchased 114,000 shares this week for a total of £11,600. The company have just launched their new website.
Obviously, after such a surge in the share price over such a brief period it is tempting to take profits however my feeling is there is much more to come from zero-emissions, low cost hydrogen fuel cell technology. An abundant gas produced from low-cost fuel cell technology which produces no greenhouse gas emissions and has many applications...could be a game changer in the fight against climate change. So I will keep my fingers crossed and hang in for the long haul and see where we get to.
As ever, this article is merely a record of my personal investment decisions and should not be regarded as an endorsement or recommendation... investing in smaller companies can be rewarding but is higher risk - always DYOR!