AFC Energy has signed a Joint Venture Agreement (JVA) with Speed Hire to form a dedicated hydrogen-powered generator plant hire business, Speedy Hydrogen Solutions (SHS).
The 50:50 JVA will provide exclusive access to AFC Energy’s H-Power generators across the UK and Irish markets, with first year H-Power generator sales of up to £4.7m ($5.8m) expected to be phased into SHS over the first contract year.
Speedy Hire will on-hire the H-Power generators on a three-year exclusive basis, with AFC Energy also agreeing to sell the generators and services to SHS under a Supply and Maintenance Agreement (SMA), which will include the procurement and sale of hydrogen fuel, site surveys, and technical and operational support to Speedy and its customers.
A minimum order quantity will be provided under the SMA between the two companies, which increases annually in order for SHS to maintain exclusivity in the UK and Ireland. The minimum order quantity will be phased over three years, with potential for further growth to meet customer demand.
Both companies will have the right to appoint two Directors to the Board of the joint venture.
Adam Bond, Chief Executive at AFC Energy, said, “We have every confidence that SHS will support the UK and Irish construction sector’s transition away from diesel towards its ambitious decarbonisation targets, representing a game changer in the way sustainable off-grid power is delivered to industry.”
To fund the first contract year’s orders, an initial total equity injection into SHS of £1.25m (£0.625m each) shall be made upon the formation of SHS, and the injection will be funded out of each company’s respective cash reserves, with AFC Energy’s reported to be c.£27m ($33.6m) at October 31, 2023.
“Our JV with AFC Energy further strengthens our market leadership in combining product innovation and sustainability solutions that are increasingly critical and in demand from our customers,” said Dan Evans, Chief Executive at Speedy Hire.
He added, “We continue to make progress in the delivery of our ambitious plan to be a Net Zero business by 2040 and, together with other recently announced developments like the acquisition of Green Power Hire, provide strong and unique evidence of our Velocity strategy in action.”
Under a separate agreement, Speedy Hire will provide marketing, accounting and logistical support to SHS and its own customers.
In July (2023), AFC Energy and Speedy Hire first announced the launch of a dedicated hydrogen-powered generator plant hire business.
Read more:AFC Energy and Speedy Hire launch hydrogen-powered generator plant hire business
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