AFC Energy has slashed the build cost of its 30kW hydrogen fuel cell generators by approximately 85% through low-cost stack technology and value engineering, the AIM-listed company announced.
Hydrogen fuel cell delivery is still expected to commence in mid-2026 as previously guided by the firm.
To help accelerate global expansion and reduce costs, AFC has signed a supply agreement for future fuel cell systems and is progressing plans for volume manufacturing.
AFC said it intends to enter a global strategic partnership with integrated manufacturing specialist Volex Plc to support its expansion plans.
The cost reduction exceeds AFC Energy’s target for substantial generator cost cuts and aims to achieve cost parity with diesel alternatives. The partnership with Volex is expected to drive costs down further through materials leverage and economies of scale.
AFC Energy says the cost reductions will help accelerate the adoption of its technology to replace diesel generators, combined with its hydrogen production capabilities.
“As previously announced, our strategy is to deliver commercial viability of the hydrogen economy, without reliance on Government subsidy,” said John Wilson, CEO of AFC Energy.
“In April, alongside our results, we announced an aggressive plan to target a significant reduction of the cost of our 30kW hydrogen fuel cell generators to drive market adoption. I’m delighted that this ambition has been fulfilled, with an expected c.85% reduction, and we target mid-2026 for delivery of our first low cost generators. We are grateful for the support of Volex Plc to date and look forward to developing our strategic partnership.”