Trowers advises AFC Energy plc on key multinational hydrogen fuel cell contract with TAMGO
Trowers & Hamlins has advised AFC Energy plc (AIM: AFC) ("AFC Energy"), a leading provider of hydrogen powered generator technologies, on the regional distribution arrangements with TAMGO, part of the Zahid Group of companies.
Under these arrangements, TAMGO will market and sell, or lease, AFC Energy's zero emissions hydrogen fuelled H-Power Generators to end-customers in the MENA region. This will provide AFC Energy with access to the industrial and off-grid power markets in the region, which were valued at US$1.6bn in 2020 and are projected to increase to US$3.2bn by the end of 2030. Off grid power, essential in remote areas and for construction projects, is typically produced through diesel generators but AFC Energy's hydrogen fuel cell generators have the potential to significantly reduce the carbon output of off grid power. With COP28 to be hosted in the United Arab Emirates in 2023 and in light of regional governments' push for sustainability such as Saudi Arabia's Vision 2030, the MENA region offers a great opportunity to expand AFC Energy's customer base internationally.
The Trowers team was led by partner Adrian Jones, supported by associate Jessamyn Nock.
Commenting on the deal, Adrian Jones said:
"This agreement will give AFC Energy access to the strategically-important MENA region and we were pleased to have assisted them with the legal agreements. The MENA region's off grid and renewable energy markets have enormous growth potential given the focus on sustainability and the volume of ongoing building and development which is happening or planned. The Neom project alone should require significant off-grid power and if you also want to push sustainability that power needs to come from low carbon and sustainable sources. AFC will be well positioned to satisfy this demand over the coming years."
Adam Bond, CEO of AFC Energy said:
"This deal with TAMGO represents nearly three years of discussion and exploration of market opportunities in the region and we are delighted to be moving forward. We have appreciated Trowers & Hamlins timely and pragmatic support through this process to bring the deal to a successful conclusion."