AFC Energy shares soared on Friday after the hydrogen firm announced a partnership with Industrial Chemicals Group to establish a 50:50 joint venture that will produce hydrogen from ammonia using proprietary cracking technology.
The collaboration aims to disrupt the UK hydrogen market by producing and selling hydrogen at competitive prices without relying on government subsidies.
The joint venture will leverage ICL’s ammonia procurement capabilities and customer base alongside AFC Energy’s ammonia cracking technology.
AFC Energy shares were 10% higher at the time of writing.
“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,” said John Wilson, Chief Executive of AFC Energy.
“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.”
Initial operations are expected to begin in early 2026, subject to permitting, with production capacity of up to 400kg of hydrogen per day. The partnership plans to expand capacity through AFC Energy’s Hy-5 portable, containerised ammonia crackers, which can generate up to 500kg daily.