(Alliance News) - AFC Energy PLC on Monday said it reached an exclusive distribution agreement with Saudi Arabian vendor Tamgo for its hydrogen-fuelled 'H-Power' generators.

The Surrey, England-based hydrogen-powered generator technology provider said Tamgo will market and sell or lease the zero-emission generators to industrial and off-grid power climates in Saudi Arabia, as well as 16 surrounding nations including the UAE and Qatar.

"We are delighted that Tamgo will represent our leading H-Power generator platforms in the Saudi and neighbouring markets at a time when sustainable, temporary power is forecast to materially increase," commented Chief Executive Adam Bond.

The agreement, he said, "reflects our common vision to become the largest dealer of hydrogen fuel cell generators in the Saudi and [Middle East & North Africa] regions."

Tamgo, the trading name of Jeddah-based equipment supplier Machinery Group LLC, is an approved vendor to multiple large-scale and "mega" infrastructure and mining projects in Saudi Arabia, AFC noted. Its parent company, Zahid Group, provides manufacturing capabilities to various companies including Renault SA's Renault brand trucks.

AFC said Tamgo's exclusive dealership rights incorporate its fuel cell technologies, including name-plated generators ranging from 10 to 200 kilowatts. Tango will provide on-the-ground maintenance and support services.

In April 2021, AFC signed a memorandum of understanding with Altaaqa Alternative Solutions, another Zahid Group company, with the intention of establishing an exclusive dealership to distribute its fuel cell systems in Saudi Arabia and the MENA regions. AFC on Monday said its deal with Tamgo supersedes and builds on that previous accord.

Tamgo Chief Executive Rami Elayan said the firm was "delighted" by the deal, adding: "This milestone signifies a continued evolution of the collaboration initiated with AFC Energy back in 2021, and will enhance Tamgo's ability to provide environmentally-friendly electricity solutions to its customers.

"With this agreement, we are confident that our combined efforts will establish a prominent presence in the Saudi Arabian and broader regional markets for hydrogen fuel cell generators."

Shares in AFC Energy were up 6.0% at 16.16 pence in London on Monday.

By Emma Curzon, Alliance News reporter

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