Business
Landmark agreement signed in South Korea
Landmark agreement signed in South Korea.
About this update from H-power Plc
[{"type":"text","content":"\n \nRNS Number : 5512M AFC Energy Plc 17 July 2014 \n \n\n 17 July 2014\n \nAFC Energy plc\n(\"AFC Energy\", \"AFC\" or \"the Company\")\n \nLandmark agreement signed for stationary fuel cell systems in South Korea\n \nBreakthrough deal, supported by a leading Korean investment bank, is expected to be worth $3.75m, increasing up to $15m upon satisfactory completion of the first phase \n \nAFC Energy, the industrial fuel cell power company, is pleased to announce that it has entered into a Heads of Agreement with Daniel Inc., a fuel cell focused power plant owner and development company in South Korea, for an initial 1MW fuel cell system with a follow-on option for a further 3MW project making a total potential sales value of approximately $15 million. \n \nThe Company believes this agreement, once ratified with a formal contract, will represent the largest sale in revenue terms by any British fuel cell manufacturer in South Korea for a stationary system in an industrial setting. It will also represent the biggest deal won by AFC Energy since its inception in 2006. \n \nThe initial 1MW alkaline fuel cell system will be deployed in stages and will include a long term maintenance agreement. Under the terms, a deposit of $1.25 million will become payable to AFC Energy upon signing of the formal contract and supply agreement, before deployment of the system commences. The formal contract will also include the opportunity for a follow-on order for a 3MW system at a second site, depending on performance. \n \nThe first system will use a mixture of liquefied natural gas (LNG) and biomass gas as its primary energy source to generate electricity. AFC Energy will install, operate and maintain its low cost fuel cell systems at Daniel Inc's. site and the project will benefit from South Korea's clean energy incentive program that focuses on the aggressive deployment of fuel cells by large electricity producers and users. \n \nThis project has been facilitated with the assistance of KDB Daewoo Securities (\"Daewoo\"), South Korea's leading investment banking firm, acting as introducer for AFC Energy. Daewoo have indicated that going forward they will continue to support the Company in a referral function for other client companies and will receive appropriate compensation. \n ...