AFC ENERGY, POWERING THE GREEN TRANSITION?

INTRODUCTION

AFC Energy is a company that specializes in generating renewable energy, with a specific focus on developing solutions that include hydrogen as fuel and a means to store renewable energy. The company aims to play a fundamental role in the energy transition away from hydrocarbons, with their mission highlighting that hydrogen could be a viable replacement. According to the International Energy Agency, hydrogen is a leading option in the context of storing renewable energy. According to reports, renewable energy is at the forefront of the agenda for many governments around the world, which could be a key driving factor for AFC energy, as the demand for renewables solutions continues to increase. This could make AFC Energy one of the best UK shares to buy now.

AFC ENERGY LANDS ITS FIRST COMMERCIAL CONTRACT, A SIGN OF CONFIDENCE?

AFC Energy recently landed a £2m contract commercial contract for its fuel cell generators. This is the company’s first major contract and is a major factor in the context of the company’s viability. According to the company’s CEO, after the signing of the contract, AFC Energy received strong market interest both domestically and internationally. With AFC Energy now on the map, it may be only a matter of time before the company increases its contract backlog, as more companies consider renewable energy as a vital component of future energy consumption.

AFC ENERGY COULD BE WELL POSITIONED IN A GROWING MARKET.

AFC Energy could be well positioned to capitalize on a growing market globally. According to recent reports, the US hydrogen fuel cell market was worth around $800 million in 2022. According to the most recent forecasts, that market is expected to grow to about $8 Billion by 2032, which would be around 900% growth. Globally, the market was worth around $4 Billion in 2022, with forecasts suggesting that it could grow to $39.86 Billion by 2032, which is around 896% growth over the 10-year period. AFC Energy could capitalize on these growth expectations and may be able to increase its market share substantially as the company scales its operations. 

CONCLUSION/SUMMARY

In conclusion, AFC Energy is currently operating in a relatively new, but promising industry. Renewables have been touted as a viable hydrocarbon replacement and use of hydrogen fuel cell technology is likely to play a key role. Given the exponential growth expected within that market AFC Energy could be an interesting market stock today.