- The joint venture has committed to an initial £2 million order for H-Power generators.
- Speedy Hire shares have fallen around 14% in the last 12 months
Speedy Hire and AFC Energy have unveiled a new joint venture that will rent hydrogen generators.
Speedy Hydrogen Solutions has committed to an initial order of £2 million of H-Power generators, which will be delivered over the next six months.
Speedy Hire boss Dan Evans said the joint venture would deliver “sustainability solutions that are increasingly critical and in-demand by our customers”.
Joint venture: Speedy Hire and AFC Energy have unveiled a new joint venture, Speedy Hydrogen Solutions
AFC Energy will sell the hydrogen generators to Speedy Hydrogen Solutions, which will lease them to Speedy Hire to then rent them out to construction sector customers in the UK and Ireland for an initial period of three years.
In addition to initial orders, AFC Energy will generate revenue from technical services and maintenance, and will potentially have the opportunity to earn further revenue by providing support and ancillary equipment.
The duo said Speedy Hydrogen Solutions was “a dedicated hydrogen-powered generating plant rental company that promotes temporary, sustainable, zero-emission energy solutions designed specifically for the off-grid generation market.”
He added: “SHS does not expect to hire employees or commit to new facilities at this time.”
The initial agreement includes the initial committed order of £2 million, with the intention to increase orders to around £4.7 million during the first full contract year ending 31 October 2024.
Speedy Hire Shares They were down 1.59 per cent or 0.55p at 34.15p on Wednesday morning, having fallen more than 14 per cent in the last year.
Evans said: ‘Our joint venture with AFC Energy further strengthens our market leadership by combining product innovation and sustainability solutions that are increasingly critical and in-demand by our customers.
“We continue to make progress in delivering our ambitious plan to be a net zero business by 2040 and, together with other recently announced developments such as the acquisition of Green Power Hire, it provides strong and unique evidence of our Velocity strategy in action.”
Adam Bond, chief executive of AFC Energy, said: “We have every confidence that the joint venture will support the UK and Ireland construction sector’s transition from diesel towards its ambitious decarbonisation targets and represents a turning point in the sustainable way in which off-grid energy is used. delivered to the industry.
“Given the strong interest already shown by contractors and at industry events, we look forward to this company now raising the bar for sustainable off-grid energy.”
Stock changes: Speedy Hire shares have fallen around 14% in the last 12 months
