AFC Energy has launched a new joint venture (JV) with one of the UK’s largest independent chemical manufacturing and distribution companies, Industrial Chemicals Group Limited (ICL).

As part of the move, the firms will equally produce hydrogen from ammonia and sell the hydrogen at a "price to disrupt the UK market, without reliance on Government subsidies".

Furthermore, the JV will leverage ICL’s ammonia procurement, logistics capabilities and customer base, along with AFC Energy’s cracking technology.

Once the JV is established, it will acquire AFC Energy’s pilot ammonia cracking plant and hydrogen compression system in Q4 2025, with initial revenues expected in early 2026.

The firms said this would be followed by the sale of Hy-5 units to the JV once productionised.

Following the announcement, shares in AFC Energy jumped by over 7%.

Chief executive at AFC Energy, John Wilson, said: "The establishment of the JV with ICL is an exciting step in delivering our strategy to deliver commercial viability of the hydrogen economy, without reliance on Government subsidies. We have been working with ICL for some time to develop the JV and are delighted to collaborate with a partner of ICL's capability and experience to deliver low-cost hydrogen at a market disruptive price.

"In anticipation of regular imports of green ammonia becoming widely available in the UK from 2027, the JV is well positioned to take advantage of the relative ease with which ammonia can be stored in low-cost and low pressure liquified gas tanks compared to high capital costs in storing hydrogen and further benefit from significant cost advantages versus UK production from electrolysis."

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