Daniel

British AFC Energy (AFC) has struck a deal with South Korean power plant owner Daniel to provide a 1MW alkaline fuel cell system for a stationary plant.

The deal has an expected worth of $3.75m and contains a follow-on option for a further 3MW project, which could make a total potential value of $15m. According to AFC, this is the largest single order AFC has received since the company launched in 2006.

The 1MW fuel cell system is set to be deployed in stages at Daniel’s site. The system will use a mixture of liquefied natural gas (LNG) and biomass gas as its primary energy source. The South Korean government’s clean energy incentive programme will support the project.

It is the second deal for AFC in South Korea within a week after signing a contract with Chang Shin Chemical for the supply of multiple fuel cell systems with a potential of 5MW.

“South Korea is one of the world's fastest growing fuel cell markets where US companies have traditionally made early inroads due to their long history," said Ian Williamson, chief executive at AFC and added: “This initial agreement represents a tremendous opportunity for AFC Energy and, together with our other commercial-scale projects, is expected to establish a strong foundation to build a truly world-class British fuel cell company focusing on industrial, chemical and utility sectors.”

State-owned electricity utility company Kepco estimates that the installed capacity for stationary fuel cell systems in South Korea will increase from 306MW 2014 to 780MW by next year and double again by 2020.