Alkaline Fuel Cell Power Announces Development of Fuel Cells for Off-Grid and Back-Up Generator Markets - Seite 2

• lower cost, as no precious metals are required, which enables affordable mass production;
• operable with less pure “industrial” hydrogen that may contain up to 10 parts per million of carbon monoxide; a capability not shared by other fuel cell technologies;
• functional at very low temperatures (-35°C); and
• a less complex balance of plant.

Emerging Trends in the Off-Grid Generator Segment
The construction sector is a large market and accounts for 36% of global energy use and 38% of energy-related CO₂ emissions. This sector has a large demand for off-grid power generation that is currently being met by diesel power generators and aligns with the heavy transportation sector given both sectors use diesel fuel as the main energy carrier².

As a result, there will be significant challenges adhering to future CO₂ and pollution regulations. For example, in April of 2022, the UK changed its legislation to restrict the use of tax free diesel in generators, which renders hydrogen powered generators as an interesting alternative both ecologically and economically. Across Europe and the UK, the power generation market shows annual sales of nearly 1 billion EUR, while globally that figure is estimated at 20 billion EUR. The market segment being targeted by AFCP represents 65% of this figure and the Company expects that demand for zero emission power generators will grow rapidly driven by the increasing emission restrictions ³.

The growth potential of this new market is not limited to the sale of new generators; it also includes the replacement of installed generators that no longer meet stricter emission regulations. The anticipated installed base of old diesel generators is forecast between 15 and 20 billion EUR in Europe and the UK and 400 billion EUR world-wide⁴.

Diversification Lends Strength for Second Half of 2022 and Beyond
On June 20, 2022, the Company released an outlook for the second half of 2022, and AFCP’s expansion into the back-up and off-grid generator markets is consistent with our drive to further accelerate and ramp up efforts to bring fuel cells to market globally. The Company’s inclusion of fuel cells for the generator market enables AFCP to generate revenue in the near term while the distribution system for hydrogen to be delivered to homes continues to advance, supporting our long-term goal of providing micro-CHP alkaline fuel cell power systems to the market. Off-grid and back-up fuel cell generators can operate using tanks of hydrogen that are stored on site, thus eliminating the need for hydrogen to be distributed directly to local sites.