AFC Energy has entered into a Heads of Agreement with Daniel Inc., a fuel cell focused power plant owner and development company in South Korea.
The deal is for an initial 1MW fuel cell system with a follow-on option for a further 3MW project making a total potential sales value of approximately $15m.
The company believes this agreement, once ratified with a formal contract, will represent the largest sale in revenue terms by any British fuel cell manufacturer in South Korea for a stationary system in an industrial setting. It will also represent the biggest deal won by AFC Energy since its inception in 2006.
The initial 1MW alkaline fuel cell system will be deployed in stages and will include a long term maintenance agreement. Under the terms, a deposit of $1.25m will become payable to AFC Energy upon signing of the formal contract and supply agreement, before deployment of the system commences. The formal contract will also include the opportunity for a follow-on order for a 3MW system at a second site, depending on performance.
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