AFC Energy (AFC.L) is a small company listed on
the AIM market. However it is one of the market leaders in the hydrogen
revolution as we transition from fossil fuels to clean energy. Hydrogen is
regarded as a key element in the governments announcement to reach net zero
carbon emissions by 2050. The UK will host the COP 26 conference in 2020.
The shares were first added to my green portfolio
last September and topped up in December - from 5p up to 27p then down to 12p
and up 36p then down to 22p... it's been a rollercoaster ride to say the least!
Results
Last week the company released results for the
full year to end October 2019 (link via Investegate).
Over the 12m period losses have narrowed to £3.6m
(£5m 2018)
Adam
Bond, CEO of AFC Energy, commented: "The past
twelve months has seen a clear and ever-growing momentum behind the role of
hydrogen as a means of decarbonising the UK's current and future energy
mix. With the successes and achievements delivered by AFC Energy over
these same twelve months, we are well positioned to capitalise on this growth
market, particularly in support of the transition away from diesel engines in
both motive and stationary applications towards clean hydrogen-based
alternatives.
The
premium priced power achievable in both off-grid and convenience based rapid EV
charging present market deployment opportunities as recently validated through
feedback received following the Company's EV charger demonstration roadshow
throughout the UK earlier this month.
The
next twelve months will see a concerted effort focussed on the sale and
deployment of fuel cell systems into these key markets alongside growth in
resources to deliver scaled up manufacturing capacity and also sales and
commercial coverage of our key targets. We have the opportunity for clear
first mover advantage in the EV charging market in particular and through the
much-appreciated efforts of our employees and partners, look forwards to
delivering on our commitments to support the UK's and international efforts
towards a net zero society"
![]() |
Share Price past 6 months (click to enlarge) |
The government have recently brought forward the
date for phasing out petrol and diesel engine vehicles from 2040 to 2035 and
this should strengthen the demand and urgency for alternatives such as battery
EVs and hydrogen fuel cell powered vehicles. It will take some time to upgrade
the National Grid network and increase capacity so AFC's EV charger should help
to bridge the transition. They have many applications - charging hubs for
taxis, powering trains, local councils, motorway charging points, fleet
charging as well as domestic vehicles.
It is hoped that over the coming year some of this
potential can translate into contracts for delivery of the fuel cell systems
into the market. This is still a relatively small company - market cap. £95m - operating
in a niche but growing market so I expect the share price to be volatile, rising sharply or
falling according to market news.
![]() |
...a critical piece of the net zero jigsaw |
My holding has increased four-fold since
purchase last September however in the past month I have taken some of the profits to fund other
purchases such as Ceres Power so AFC is still a relatively small percentage of the portfolio. I am hopeful the chancellor will confirm the government's support for renewables and hydrogen as part of the transition to net zero emissions in the budget on Wednesday.
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!
No comments:
Post a Comment