AFC Energy announces new joint venture with Industrial Chemicals Group to produce hydrogen from ammonia

One of the UK's largest independent chemical manufacturing and distribution companies has announced its agreement to form a joint venture (JV) to produce hydrogen from ammonia.

AFC Energy, a leading provider of hydrogen-powered generator technologies, and Industrial Chemicals Group Limited (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 Q4 of 2025 with initial revenues expected in early 2026.  This will be followed by the sale of Hy-5 units to the JV once productionised.

Image ©AFC Energy

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.

John Wilson, Chief Executive of AFC Energy, said: "The establishment of the JV with ICL is an exciting step in delivering our strategy to deliver commercial viability of the hydrogen economy, without reliance on Government subsidies. We have been working with ICL for some time to develop the JV and are delighted to collaborate with a partner of ICL's capability and experience to deliver low-cost hydrogen at a market-disruptive price.

“In anticipation of regular imports of green ammonia becoming widely available in the UK from 2027, the JV is well positioned to take advantage of the relative ease with which ammonia can be stored in low-cost and low-pressure liquified gas tanks compared to high-capital costs in storing hydrogen, and further benefit from significant cost advantages versus UK production from electrolysis.”

For more information, visit www.afcenergy.com and www.icgl.co.uk.