Industrial fuel cell power company AFC Energy claims it is on the right track despite recording an operating loss of £2.7m ($3.5m) in its latest interim results.
During the six-month period ended 30th April 2017, the UK-based business continued to recognise grant income under the European Framework Programme 7 for the POWER-UP and ALKOMMONIA projects, but at a lower level as they enter their final stages.
The company also cites direct labour and material costs associated with the projects as an impact in cost of sales. Despite this, its cash balance as at 30th April 2017 was £8.4m ($10.8m) – a whopping 200% increase compared to the year prior.
In the update, the company revealed that it is on track to reach an initial demonstration of a commercially deployable fuel cell by the end of the year.
Its collaboration with Italy-based Industry de Nora S.p.A as initiated last year is said to have “underpinned” AFC Energy’s technical progress, continuing to evidence improved performance in fuel cell longevity.
Under the partnership, AFC Energy has performed more than 145 tests with De Nora using several configurations and different system specifications to advance its fuel cell system design. The company says it is “increasingly confident” that its fuel cells will exceed a commercial lifetime target of 12 months as a result of these extensive tests.
In March, AFC Energy confirmed its first commercial sale of a small-scale alkaline hydrogen fuel cell system to PowerHouse Energy plc and several other commercial projects are also under evaluation with local and international project partners in Korea and the Middle East.
CEO Adam Bond said he was “extremely pleased” with the company’s progress and said that the remainder of 2017 is “in line with expectations.”
Bond added, “The company has a strengthened balance sheet following the fundraise in March 2017, has commenced engineering studies on deployment projects and strengthened its leadership team, positioning the company well for the aggressive work programme set…by the end of 2017.”