Warning Shot Across the Bow

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AFC Energy (AIM: AFC) issued a news release today regarding a Memorandum of Understanding to supply up to 5MW of fuel cell capacity to Chang Shin Chemical in South Korea.  This development has been a long time coming but it signifies that the company is preparing to graduate from alkaline fuel cell developer to manufacturer.  

In a sense this MOU is like a warning shot across the bow for investors.  It's a heads up alerting them that something interesting could be about to happen.  It will take some time yet for the prospect to evaluate the technology but the release indicates that the potential for this customer alone could be well beyond the initial 5MW being contemplated.

AFC Energy has put years into research and development which has brought them to the threshold of becoming a significant player in the fuel cell sector.  All the work and preparation done to commercialize and scale up the manufacture of their fuel cell systems will become apparent over the next six to twelve months as AFC prepares to go to market.  

There is a big push on in Europe and in countries like South Korea to accelerate the adoption of fuel cells and the hydrogen economy.  AFC Energy is positioned to benefit directly from this trend and the news today regarding the first large-scale commercial deployment is confirmation that they are very close now to crossing the chasm.

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