TIDMAFC
RNS Number : 3278U
AFC Energy Plc
01 April 2021
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
1 April 2021
AFC Energy PLC
("AFC Energy" or the "Company")
AFC Energy Agrees MOU To Advance Exclusive Saudi Distributorship
with Altaaqa Alternative Solutions
AFC Energy (AIM: AFC), a leading provider of hydrogen power
generation technologies, is pleased to announce the signing of a
non-binding Memorandum of Understanding ("MoU") with Altaaqa
Alternative Solutions Company Limited ("Altaaqa"), a wholly owned
member of the Zahid Group, with the intention of establishing an
exclusive dealership for the distribution of the Company's fuel
cell systems in Saudi Arabia and the Middle East & North Africa
("MENA") regions via a strategic partnership.
Highlights
-- Altaaqa owns and operates one of the world's largest rental
fleets of mobile diesel power modules, with 2GW of capacity within
its portfolio.
-- Altaaqa is aiming to complement its conventional diesel power
modules offering with sustainable, zero emission alternatives for
the Saudi Arabian and MENA regions.
-- AFC Energy and Altaaqa are committing to establish a
strategic partnership with the aim of Altaaqa being appointed AFC
Energy's exclusive fuel cell system distributor in the region.
-- The initial focus of the partnership would be on the Kingdom
of Saudi Arabia, with the potential for growth into the MENA
market.
-- Sustainable, temporary power in Saudi Arabia is expected to
materially increase with national programmes promoting Saudi
Arabia's sustainability commitments under the Kingdom's Vision 2030
and the recently announced Saudi Green Initiative and the Green
Middle East Initiative.
-- The dealership would give AFC Energy access to the emerging
Saudi power market, already forecast to be one of the world's
largest producers of green hydrogen.
AFC Energy today announced that it has signed a non-binding
Memorandum of Understanding (MoU) with Altaaqa Alternative
Solutions - one of the world's largest rental fleet operators of
mobile diesel power modules, headquartered in Jeddah, Saudi
Arabia.
The MoU is expected to advance discussions between both
companies towards a long-term exclusive dealership relationship
whereby Altaaqa will initially promote and distribute AFC Energy
fuel cell systems across the Kingdom of Saudi Arabia, prior to the
MENA regions.
With a portfolio of over 2GWs of diesel generators and a proven
20 year track record in mobile power systems, Altaaqa is one of the
region's leading suppliers of temporary and off-grid power
solutions to the oil & gas, power utilities, mining, data
centres, government services, military, manufacturing, and
construction sectors.
A strategic partnership with Altaaqa would be expected to drive
new investment into hydrogen fuel cell technology hence promoting a
changed energy mix in the region's power rental industry , and have
the potential for expansion into local distribution, assembly and
marketing of AFC Energy systems by Altaaqa. The MoU envisages that
following the progression of dealership discussions with Altaaqa,
AFC Energy would expect to see a significant rise in multiple fuel
cell system orders for commercial deployment over coming years.
Reducing reliance on fossil fuel and associated power generation
is a key pillar of the Kingdom's Vision 2030 strategic framework,
which seeks to transition Saudi Arabia away from its incumbent
dependence on oil, diversify its economy, and develop public
service sectors such as health, education, infrastructure,
recreation, and tourism. Crown Prince Muhammad Bin Salman recently
unveiled the Saudi Green Initiative and the Green Middle East
Initiative, an ambitious road map that targets a 60% reduction in
the region's carbon emissions.
Subject to contract and internal Board approvals, the reaching
of an exclusive dealership agreement with Altaaqa would provide AFC
Energy with access to another significant off-grid power market and
leverage the Company technology's ability to provide zero emission
power across one of its key target markets. A partnership would
also place Altaaqa at the forefront of the mobile power rental
industry's transition into green technology and consolidate AFC
Energy's position as a leader in the provision of new, zero
emission, off-grid temporary power systems.
A future dealership relationship with Altaaqa is wholly
consistent with AFC Energy's business model of working in
partnership with world-class mobile power system rental companies
and further highlights the potential scale that can be achieved
through this model. With scale comes the ability to accelerate cost
reductions through manufacturing and supply chain leverage.
Adam Bond, Chief Executive Officer at AFC Energy, said:
"We are absolutely delighted to be commencing our strategic
partnership with Altaaqa and to expand our presence in new regions
such as the Saudi and MENA power markets. Globally recognised as a
partner of choice by many of the world's leading industrial and
energy companies, Altaaqa has an enviable reputation in the
provision of best-in-class mobile power systems and further
consolidates AFC Energy's position as an emerging global provider
of zero emission power systems in advancement of the international
transition to a Net Zero economy."
Majid T. Zahid, Group President - Energy at Zahid Group,
added:
"Today marks the beginning of a new partnership with AFC Energy,
an industry leader in delivering clean electricity. We are
confident that together we will be a significant player in our
Kingdom's aim of becoming the world's leading hub in the production
of green hydrogen and ammonia.
Zahid Group is fully aligned with our Kingdom's strategic vision
for the future and across all our Group's companies we are
demonstrating our belief in it."
For further information, please contact:
AFC ENERGY AND ADVISORS
AFC Energy plc
Adam Bond (Chief Executive Officer) +44 (0) 14 8327 6726
Iain Thomson (Head of Communications and investors@afcenergy.com
Stakeholder Management)
WH Ireland - Nominated Adviser and Joint
Broker
M ike Coe (Corporate Finance)
Jasper Berry (Corporate Broking) +44 (0) 117 945 3470
-----------------------------
M C Peat & Co LLP - Joint Broker
Charlie Peat +44 (0) 20 7104 2334
-----------------------------
Zeus Capital Limited - Joint Broker
Daniel Harris (Corporate Finance)
John Goold/Dominic King (Corporate Broking) +44 (0) 203 829 5000
-----------------------------
FTI Consulting - PR Advisors +44 (0) 203 727 1000
Sara Powell / Ben Brewerton afcenergy@fticonsulting.com
-----------------------------
About AFC Energy plc
AFC Energy plc is commercialising a scalable alkaline fuel cell
system, to provide clean electricity for on and off grid
applications. The technology, pioneered over the past twelve years
in the UK, is now deployable in electric vehicle chargers, off-grid
decentralised power systems and industrial gas plants as part of a
portfolio approach to the decarbonisation of local electricity
needs. (afcenergy.com)
About Altaaqa
Altaaqa Alternative Solutions Company (Altaaqa) is a leading
Saudi-based total utility solutions provider, executing bespoke
turnkey projects in power generation, cooling, water and renewables
across Saudi Arabia through seven strategically located branches.
Altaaqa, a wholly owned company of the Zahid Group, was established
in 2004 to address the power requirements in Saudi Arabia, and
within a decade ramped up its fleet of mobile generators to over
2GW.Altaaqa serves customers no matter where their sites may be
across the Kingdom. (altaaqa.com)
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