AFC Energy announced the signing of a Joint Development Agreement with Komatsu Ltd. Komatsu is one of the world's leading manufacturers of construction, mining, forestry, and industrial heavy equipment and is listed in Tokyo and Osaka, Japan, with a market capitalisation of approximately USD 43 billion. Under the JDA, the Company and Komatsu will work together to design and integrate AFC Energy's proprietary ammonia cracking technology with a Komatsu industrial internal combustion diesel engine to assess the feasibility of a new ammonia fuelled engine platform capable of scaled production. This would potentially provide Komatsu customers with an alternative, sustainable solution for their fleets of construction and mining plant equipment.
Successful operational delivery of an operational diesel engine under the JDA will demonstrate that an internal combustion engine can be run on liquid ammonia with minimal changes necessary, thereby introducing AFC Energy's technology into a further vertical with a significant addressable market. The JDA has a contract value of c. USD 2 million, subject to delivery of certain milestones.
Komatsu Ltd is a Japan-based company principally engaged in the research, development, sale, sales finance of products such as construction machinery. The Company operates in three business segments. Construction Machinery & Vehicle segment provides drilling machinery, loading machinery, land preparation and roadbed machinery, transport machinery, forestry machinery, underground construction machinery, underground mining machinery, environmental recycling machinery, industrial vehicles, cast products and logistics services. Retail Finance segment is engaged in the sales finance business related to construction and mining equipment. Industrial Machinery & Others segment engages in the provision of forging machinery, sheet metal machinery, machine tools, defense-related equipment, temperature control equipment, and optical machinery.
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
ESG MSCI
ESG MSCI
The MSCI ESG score assesses a company’s environmental, social, and governance practices relative to its industry peers. Companies are rated from CCC (laggard) to AAA (leader). This rating helps investors incorporate sustainability risks and opportunities into their investment decisions.
