© Supplied by AFC Energy 
AFC Energy has announced a joint venture with a UK chemicals manufacturer that will enable a “a flexible and economically viable hydrogen supply chain”.
The Surrey-based hydrogen fuel cell specialist has teamed up with the UK’s chemical manufacturing and distribution firm Industrial Chemicals Group Limited (ICL) to produce hydrogen from ammonia.
The plan involves using low-cost ammonia using ACL’s pilot ammonia cracking plant and hydrogen compression system based at its headquarters at the Dunsfold Aerodrome.
AFC said ammonia’s status as a globally established commodity with existing infrastructure for storage and transport makes it a cost-effective hydrogen carrier.
This reduces the upfront investment required for hydrogen infrastructure which means the project would have no need of government subsidy.
Once established, the JV will acquire AFC’s pilot ammonia cracking plant and hydrogen compression system in the final quarter of 2025 with initial revenues expected in early 2026. The deal will also include the sale of hydrogen power generators, Hy-5 units, to the JV once productionised.
John Wilson, chief executive of AFC said: “The establishment of the JV with ICL is an exciting step in delivering our strategy to deliver commercial viability of the hydrogen economy, without reliance on Government subsidies.
“We have been working with ICL for some time to develop the JV and are delighted to collaborate with a partner of ICL’s capability and experience to deliver low-cost hydrogen at a market disruptive price.
“In anticipation of regular imports of green ammonia becoming widely available in the UK from 2027, the JV is well positioned to take advantage of the relative ease with which ammonia can be stored in low-cost and low pressure liquified gas tanks compared to high capital costs in storing hydrogen and further benefit from significant cost advantages versus UK production from electrolysis.”
Essex-based ICL, formerly Dagenham Steel, was founded in 1968.
