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 12m share price (click to enlarge)

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!


  1. If you're playing around on the AIM market take a careful look at the sponsor or Nominated Advisor (Nomad). There are some very spivvy sponsors and they attract all sorts of companies, many of which probably shouldn't be listed on a public market. WH Ireland, AFC's nomad, are certainly at the lower end of the scale and their record is patchy. Mind your eye.

    1. Thanks for the warning Ruby. The Nomad for AFC is Cantor you know if they have a good reputation?

  2. I see AFC completed a small equity issue yesterday. The announcement on their website lists WH Ireland as Nomad and Joint Broker. The co broker is MC Peat who I haven't heard of before. Cantor Fitzgerald would certainly be up the scale but I can't see how they are involved (not that I've looked hard).

    The AIM market is a risky one for all sorts of reasons and Nomad risk is just one of them. It's a useful filter though since well regarded companies tend to end up with well regarded brokers (or brokers with a less blemished track record!)

    1. Thanks Ruby for this further information. I was looking at the last annual report which mentioned Cantor Fitzgerald but see that WH Ireland were appointed in September. Fingers crossed eh!