AFC Energy launches Hymatec ammonia cracking subsidiary

18th Sep 2024 11:07

(Sharecast News) - AFC Energy, a provider of hydrogen power generation technologies, announced the launch of Hyamtec on Wednesday - a wholly-owned subsidiary established to commercialise the company's next-generation distributed ammonia cracking technology.

The AIM-traded firm said the initiative was designed to accelerate the deployment of affordable and scalable hydrogen generation solutions, enabling industries to decarbonise without the need for extensive new infrastructure.

It said ammonia crackers played a crucial role in converting ammonia into hydrogen-rich fuel gas, which could be used for various industrial applications.

AFC said it had invested years in pioneering the design and development of modular, compact ammonia crackers through a dedicated team of industry experts.

Hyamtec's technology had demonstrated flexibility by integrating with both ammonia combustion engines and hydrogen purification systems suitable for fuel cell applications, the board explained.

It said Hyamtec would focus on delivering low-cost, on-demand hydrogen production for industrial and mobile applications.

Targeted markets included decarbonising industrial heat generation, converting ammonia for large-capacity combustion engines in power generation, marine, and mining sectors, and producing modular, purified hydrogen for fuel cells and transportation.

By establishing Hyamtec as a separate entity, AFC said it was aiming to enhance the commercialisation process and increase flexibility in securing financing for the subsidiary's growth.

Dr Mike Rendall, currently the chief technology officer of AFC Energy's hydrogen processing division, would lead Hyamtec as managing director.

The board said that with over 25 years of experience in hydrogen generation technologies, Dr Rendall would bring significant expertise to drive the subsidiary's strategic objectives.

"The global transition to net zero is driving the urgent need for innovative hydrogen solutions, and ammonia cracking is emerging as a key enabler for industries aiming to decarbonise," said chief executive officer Gary Bullard.

"With years of investment behind us, AFC Energy has built a robust ammonia cracking technology that aligns perfectly with the needs of heavy industry.

"The creation of Hyamtec allows us to fully capitalise on this technology, bringing it to market in a way that unlocks new growth opportunities, both in the UK and globally."

Bullard said the company was "excited" to offer a scalable solution that could "significantly lower" hydrogen costs for industrial use without requiring extensive new infrastructure.

"This approach, combined with the strength of our existing fuel cell business, positions us to provide dual pathways for cleaner energy solutions.

"By showcasing the unique potential of Hyamtec, we invite strategic partners and investors to join us in accelerating the adoption of hydrogen technologies and driving the next wave of industrial decarbonisation."

At 1445 BST, shares in AFC Energy were down 2.56% at 12.25p.

Reporting by Josh White for Sharecast.com.