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22 July 2024

AFC Energy PLC

("AFC Energy" or the "Company")

Zollner to Scale Manufacture of S Series Fuel Cell Modules

AFC Energy (AIM: AFC), a leading provider of hydrogen power generation technologies, is pleased to announce it has signed a Strategic Supplier Agreement ("SSA") with Germany's Zollner Elektronik ("Zollner") as the Company's scaled manufacturing partner for fuel cell modules of its S Series air cooled platform.

Highlights:

·      AFC Energy and Zollner sign their first SSA for the scaled production of fuel cell modules for the Company's S

Series platform

·      Zollner is Europe's largest electronics mechanical services contract manufacturer operating across 7 sectors, 4 continents and 24 locations worldwide

·      In what is expected to be a multi-year agreement, Zollner will undertake a phased build-up of fuel cell module manufacture to incorporate:

o  Wiring and looms

o  Electrical panel and boards

o  Balance of plant sub-assemblies

o  Module assembly

o  Stack integration

o  Module factory acceptance testing

·      Under the SSA, scaled production of each fuel cell module is expected to take place in Zollner's German facilities outside of Zandt with scope to grow internationally across multiple continents with international growth.

·      Zollner's role in manufacture is critical in enabling the scale up of H-Power Generator production with call off orders placed alongside demand growth.

·      The SSA envisages planning to start immediately for the first phase production of the fuel cell module's electrical

assemblies and wiring.

·      The SSA is fully consistent with AFC Energy's low capital outsourced contract manufacturing strategy.

Markus Aschenbrenner, Member of the board at Zollner Elektronik, said:

"As a forward-looking electronics and mechatronics service provider in the field of Electronics Manufacturing Services (EMS), we are always on the lookout for new, innovative technologies that pave the way to a more sustainable future. We are delighted to have entered into this multi-year Strategic Supply Agreement with AFC Energy to support the company meet the growing demand for sustainable alternatives to fossil fuel generators. Hydrogen is no longer a fuel of the future, but by working with partners like AFC Energy, we are pleased to be actively participating in the industry's pursuit of a net zero solution and trying to make an important contribution."

Adam Bond, Chief Executive of AFC Energy, said:

"We are very proud to be working with Europe's leading mechatronics manufacturing partners in Zollner. Our strategy of leveraging the scale up manufacturing expertise of contract manufacturers has long been the core of our future product readiness and with such high demand for Zollner's services, we are extremely pleased to see alignment of our two companies and the complimentary opportunities that we are able to pursue in partnership. We look forward to a long and fruit ful partnership with Zollner as we continue to support industry meet its decarbonisation goals."