Industrial fuel cell power company AFC Energy plc has executed its first commercial power purchase agreement with Stadtwerke Stade GmbH for the sale of electricity generated at AFC’s fuel cell generation facility at Stade, Germany.
The sale of electricity under the PPA represents the first commercial revenue to be generated from an AFC fuel cell system.
Further still, it will not only provide a source of revenue for AFC, but also provide valuable operational experience in the dispatch of electricity into the German power grid through one of the region’s leading power utilities.
AFC explained that it has been in discussions with Stadtwerke Stade for the last few months in relation to the PPA and is now pleased to have agreed terms that will see the two companies collaborate as part of the AFC fuel cell facility in Stade until 31st July 2017 – with an option to extend the term of the PPA for a further 12 months.
The commercial terms of the PPA shall broadly reflect the sale of electricity at spot market prices, meaning AFC will potentially benefit from the sale of power at peak power pricing.
Adam Bond, CEO of AFC, said, “As we near commencement of our first fuel cell operation at Stade, the signing of this commercial PPA with Stadtwerke Stade provides a further clear indication of our company’s move towards commercialisation.”
“It is an important part of our corporate strategy to work collaboratively with local partners in our projects and support local economies wherever possible, which makes this deal all the more important for AFC. We are delighted to have this opportunity to work with Stadtwerke Stade and look forward to maintaining a long and productive relationship with the organisation whilst we operate our project in Stade.”