AFC Energy plc and Industrial Chemicals Group Limited announced their agreement to form a joint venture to produce hydrogen from ammonia. Highlights: 50:50 JV to produce hydrogen using AFC Energy's proprietary, leading ammonia cracking technology. JV to produce and sell hydrogen at a price to disrupt the UK market, without reliance on Government subsidies.
JV to leverage ICL's ammonia procurement, logistics capabilities and customer base and AFC Energy's proprietary, leading cracking technology. Initial revenues expected in early 2026, subject to permitting, generating up to 400kg/day of hydrogen, followed by incremental capacity through AFC Energy's Hy-5 portable, containerised ammonia crackers capable of generating up to 500kg/day. AFC Energy and ICL have agreed terms to incorporate the JV, with further detailed terms to be agreed between the parties.
Once established, the JV will initially acquire AFC Energy's pilot ammonia cracking plant and hydrogen compression system in Fourth Quarter 2025 (subject to permitting requirements) with initial revenues expected in early 2026. This will be followed by the sale of Hy-5 units to the JV once productionised. Utilisation of low-cost ammonia and cracking it, will provide the JV's customers with access to low cost and low carbon hydrogen without the need for large-scale domestic hydrogen production facilities.
Ammonia is a globally established commodity, with existing infrastructure for storage and transport, making it a cost-effective hydrogen carrier. This approach reduces the upfront investment required for hydrogen infrastructure but also supports the UK's net-zero goals by enabling a flexible and economically viable hydrogen supply chain.
