AFC Energy plc announced the signing of its Joint Venture Agreement (the "JVA") with Speedy Hire Plc ("Speedy"), for the formation of a dedicated hydrogen powered generator plant hire business, Speedy Hydrogen Solutions Ltd. ("SHS"). SHS incorporated as a 50:50 Joint Venture to provide exclusive access to AFC Energy's H-Power Generators across the UK and Irish markets. First year H-Power Generator sales to SHS of up to PS4.7 million.

Exclusivity subject to SHS satisfying annual growth in minimum order quantity over first three years. H-Power Generator sales to be phased into SHS over the first contract year. AFC Energy to procure and sell hydrogen fuel, technical and operational support to SHS.

On 28 July 2023, Speedy and AFC Energy announced the proposed launch of a dedicated hydrogen powered generators plant hire business servicing the UK and Irish construction and temporary power markets. Since the announcement, strong interest has been confirmed from Speedy's customers with a growing pipeline established. Both companies are pleased to announce the launch of Speedy Hydrogen Solutions.

SHS is a newly incorporated joint venture to be owned equally by Speedy and AFC Energy and is positioned to be the market leader in the UK and Ireland's hydrogen generator hire market. SHS is governed by a newly executed JVA and will purchase H-Power Generators from AFC Energy for hiring to Speedy on commercial terms. Speedy will on-hire the H-Power Generators, on a three year exclusive basis, to its customers in the UK and Ireland. AFC Energy will sell H-Power Generators and services to SHS under a Supply and Maintenance Agreement ("SMA"), also executed, which will include the procurement and sale of hydrogen fuel, as well as site surveys, technical and operational support to Speedy and its customers.

The delivery profile of generators above the committed value is subject to performance and market uptake consistent with the business plan. A minimum order quantity is provided for under the Supply and Maintenance Agreement between AFC Energy and SHS, which increases annually, in order for SHS to maintain exclusivity in the UK and Ireland. The minimum order quantity is phased over three years, with potential for further growth to meet customer demand at the time.

Joint Venture Funding To fund the first contract year's orders, an initial total equity injection into SHS (as a subscription for shares) of PS1.25 million (PS0.625 million each) shall be made upon formation of SHS. This injection shall be funded out of each company's respective cash reserves which, in the case of AFC Energy, stood at c.PS27 million at 31 October 2023. Subsequent tranches of funding will become payable into SHS in the form of commercial interest bearing loan notes from each of Speedy and AFC Energy to support the increased number of H-Power Generators deployed into SHS.

Payment is expected to be made from existing cash resources of each company. Future payments into SHS shall be predicated on satisfaction of certain operational milestones in accordance with the JVA.