AFC Energy Commences FEED on Landmark Hydrogen Fuel Cell Micro-Grid in Surrey at Dunsfold Park

Monday, 31 July 2017

AFC Energy (AIM: AFC), the industrial fuel cell power company, is pleased to announce it has executed a term sheet with Dunsfold Park Ltd. (“Dunsfold Park”) to commence Front End Engineering and Design (“FEED”) work on a landmark hydrogen micro-grid at the Dunsfold Park site in Surrey, UK.

The FEED will commence immediately.


  • AFC Energy to commence FEED study for an initial 1 – 1.5 MW hydrogen fuel cell micro grid, sufficient to power up to 2,500 homes, as part of the Dunsfold Estate Masterplan residential and industrial redevelopment
  • FEED study to deliver a fully engineered project and cost estimate of +/-10%
  • The hydrogen micro-grid is the first known initiative of its kind in the world
  • The micro-grid as envisaged will install at varying stages:

1 – 1.5 MW of AFC Energy hydrogen fuel cell generation capacity
AFC Energy integrated hydrogen battery
hydrogen vehicle refuelling station
electric car recharging points (sourced from hydrogen fuel cell generation)
low grade heat integration from the AFC Energy fuel cell

  • The scheme will be supplied with “green” hydrogen sourced locally via bio-methane
  • Plans to deliver the micro-grid across multiple phases commencing second half of 2018 in line with demand from the Dunsfold Park site

Dunsfold Park is home to AFC Energy’s head office, and under its site redevelopment Masterplan, is scheduling the development of an initial 1,800 new homes and green space, co-existing with light industry, to create one the UK’s largest residential and industrial brownfield redevelopment projects.
AFC Energy and Dunsfold Park have executed a Term Sheet which seeks to deploy up to 1 – 1.5 MW of the Company’s fuel cell systems on site as part of a residential and industrial energy micro grid to meet the growing needs of the redeveloped site.

The scheme expects to be supplied with “green hydrogen” sourced locally from bio-methane (anaerobic digestion facility) making the proposition an entirely renewable and clean micro-grid which could have application not only across the UK, but could also be replicated internationally across all brown and green field residential, commercial and industrial developments.

The clean micro-grid is entirely consistent with the Dunsfold Park renewable energy strategy and that of the UK Government’s industrial policy and policy of building more stability, flexibility and resilience into local power grids through the decarbonisation of the national power grid.

AFC Energy will commence work on the FEED in August 2017 to fully engineer and cost up the project to +/-10% cost accuracy before sanction is given by both AFC Energy and Dunsfold Park. The commercial terms of project ownership, power pricing and revenue sharing (expected to be in excess of £25m over the 20-year life of the project) will be developed in parallel. Furthermore, both parties are interested in considering different delivery and ownership models including a joint venture.

Power generation from the fuel cell facility in conjunction with the existing solar farm on site, will make Dunsfold Park the only Business Park in the UK with a micro grid supplied entirely by a combination of hydrogen / renewable derived energy, highlighting the importance and prominence of this project in the context of the UK energy market.

The timing for delivery of the project will be divided into multiple phases in recognition of the growth trajectory for new energy demand in conjunction with the site’s redevelopment initiatives. Indicatively, the parties hope to deliver the first 0.5 – 1 MW of installed generation capacity in Q4 2018 and the second tranche of installed power capacity by the end of Q3 2019.

Jim McAllister, Chief Executive of Dunsfold Park Ltd, said: “We are delighted to be collaborating with AFC Energy, a long-time tenant of Dunsfold Park on this nationally significant hydrogen fuel cell project. We look forward to seeing the results of the FEED study and endorse the initiative’s full alignment with Dunsfold Park’s clean energy strategy which has permeated all of our redevelopment activities over the past few years. Initiatives such as this collaboration with AFC Energy further highlight Dunsfold, the Borough of Waverley and the County of Surrey's prominence at the forefront of renewable energy technologies.”

Adam Bond, AFC Energy’s Chief Executive Officer, said: “As long-term tenants of Dunsfold Park, we are delighted to now be collaborating in the commercial deployment of AFC Energy’s fuel cell technology. The introduction of hydrogen derived from renewable sources is a particular highlight of the proposed scheme and re-emphases the potential innovation in sourcing long term, sustainable hydrogen for our fuel cell projects. This scheme offers the potential for national and international replicability and could become a benchmark in localised hydrogen micro-grids. We look forward to working closely with Dunsfold Park in delivering this important clean energy initiative for the region.”