AFC Energy announced it has entered into a binding Heads of Agreement with HiiROC Limited. Over recent years, AFC Energy has evaluated several emerging green, low cost hydrogen generation technologies for integration with its proprietary H-PowerTM fuel cell systems. For the past 9 months, the Company has been in discussions with HiiROC regarding the potential for natural gas to be utilised as a clean, zero CO2 emission fuel, into the AFC Energy fuel cell through adoption of HiiROC's unique plasma process. HiiROC's plasma-based process acts to convert natural gas into a clean hydrogen stream for the fuel cell, alongside gaseous carbon that can then be quenched as a high value solid carbon (carbon black). Independent analysis of gas samples derived from HiiROC's plasma process in 2019 confirmed the potential for this technology, initiating plans for a strategic partnership between the two companies. With the objective of bringing to market a unique, natural gas fueled, zero emission fuel cell system, successful scale up of the HiiROC process could allow AFC Energy and its customers to take advantage of low cost natural gas and existing distribution pipelines to access one of the world's most readily available fuels, without greenhouse emissions. It is intended that under the terms of the Commercialisation Agreement, AFC Energy will work alongside HiiROC to deliver a prototype unit through 2020 which it is supporting through an investment of £100,000 into HiiROC's scaling up programme, payable in AFC Energy shares, plus up to £300,000 worth of engineering, instrumentation, testing and associated support over eighteen months. In return, AFC Energy will have pre-defined rights including an initial reduction in hydrogen cost from the system, cumulatively valued at £2 million, and access to the technology for deployment in a number of applications, including exclusively in EV charging across the UK, Europe and other locations. Under the proposed terms of the Commercialisation Agreement, HiiROC will work with AFC Energy on a preferential basis in the development of an integrated zero emission power generation solution and within the prototype system development, will assess and confirm the technical and economic viability of the system. Based on initial economic analysis, the HiiROC system has the potential to offer a cost competitive alternative hydrogen source and complement the Company's ammonia and direct hydrogen opportunities, building a portfolio approach to fuel for its customers and partners. The £100,000 investment will be paid via the issue of 526,316 ordinary shares of 0.1 pence each in the capital of the Company at the closing price on 24 January 2020 of 19 pence per share. Application will be made to the London Stock Exchange for the new Shares to be admitted to trading on AIM shortly ("Admission"). A further announcement detailing when the shares will be admitted to trading will be made in due course. The Shares will be issued credited as fully paid and will rank in full for all dividends and other distributions declared, made or paid after the admission of the Shares, respectively and will otherwise be identical to and rank on Admission pari passu in all respects with the existing Ordinary Shares.