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(Sharecast News) - Hydrogen power generation technology company AFC Energy announced a collaboration with construction and engineering group Keltbray on Monday, for the lease of its first fuel cell for deployment to a UK construction site.
The AIM-traded firm said Keltbray agreed to lease an initial zero-emission hybrid fuel cell (HFC) power generator, as a "showcase" of how the construction industry could decarbonise sites.
It would be AFC Energy's first UK HFC deployment, with the cell expected to be rolled out at the end of the second quarter.
The two companies also outlined a roadmap to consider further system deployments later in 2022.
AFC said the location of the first system deployment remained under review, but it was expected to be in London.
Keltbray and AFC Energy would work further to build zero emission fuel cell power generators into future tenders for construction work in the UK, the company added.
The firm said that, with the removal of the red diesel subsidy from April, together with recent increases in the price of fuel, construction and other temporary power users were facing material increases in the cost of using generators relative to the cost of clean alternatives.
"AFC Energy is excited to be announcing our collaboration with Keltbray today, highlighting how industry is increasingly playing its role in delivering on society's net zero aspiration here in the UK," said chief executive officer Adam Bond.
"As an innovative and socially responsible UK contractor, Keltbray continues to show great leadership in highlighting, through adoption of hydrogen fuel cell power generator technology, how the construction industry is seeing the benefit of displacing highly polluting fossil fuels in favour of cutting-edge clean energy solutions.
"We are most pleased to be supporting Keltbray, its clients and the sector's transition towards a more sustainable future."
At 0921 GMT, shares in AFC Energy were up 9% at 40p.