AFC Energy Plc (LSE:AFC) has obtained approval from the UK Environment Agency to amend its research and development permit, enabling the company to export and sell low-carbon hydrogen produced at its pilot ammonia cracking facility in Dunsfold.
The updated permit confirms that the plant can generate ISO 14687 Grade D hydrogen at 99.97% purity and recognises the site’s safety standards, allowing operational staff to receive hands-on training in a live production environment.
The regulatory change is expected to bring forward hydrogen-related revenues by several months and offers greater flexibility regarding the potential relocation of the Dunsfold pilot site, which has capacity to produce up to 300 kilograms of hydrogen per day.
At the same time, AFC Energy is collaborating with joint venture partner Industrial Chemicals Group to roll out multiple Hy-5 ammonia cracker units at Port Clarence in Middlesbrough. The partners are also working to establish a permitting framework intended to streamline the future deployment of Hy-5 systems across the UK.
By enabling commercial hydrogen sales from its demonstration facility and progressing plans for scaled deployment through its joint venture, AFC Energy is transitioning from development-stage activity toward revenue-generating operations. The milestone strengthens its positioning within the emerging low-carbon hydrogen sector and supports its ambition to build recurring income streams while assisting industrial and power users in reducing reliance on fossil fuels.
The company’s outlook continues to be shaped by financial headwinds, particularly around profitability and cash flow. While technical indicators point to improving momentum, valuation concerns persist due to a negative price-to-earnings ratio and the absence of a dividend.
More about AFC Energy
AFC Energy Plc is a UK-based developer of ammonia-based low-carbon hydrogen production systems and hydrogen-to-power solutions, listed on AIM and headquartered in Dunsfold, Surrey. Its modular ammonia cracker technology and fuel cell generators are designed to provide scalable hydrogen supply and off-grid power for industrial, transport and temporary energy markets.
The company’s product range includes ammonia crackers capable of producing between 0.5 and 4 tonnes of hydrogen per day, as well as fuel cell generators rated at 30 kW and 200 kW. These solutions are intended to replace diesel generators and contribute to decarbonisation in sectors such as heavy industry, transport, construction, EV charging, maritime, data centres and rail.
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