15 November 2023

Speedy Hire Plc

Speedy Hire and AFC Energy Launch Dedicated Hydrogen Powered Generator Plant Hire Business - Speedy Hydrogen Solutions Limited

Further to the announcement of 28 July 2023,  Speedy Hire Plc (LON: SDY) ("Speedy"), the UK's leading tools and equipment hire services company, and AFC Energy plc (AIM: AFC) ("AFC Energy"), a leading provider of hydrogen powered generator technologies, are pleased to announce the launch of Speedy Hydrogen Solutions Limited ("SHS") their 50:50 joint venture company, a dedicated hydrogen powered generator plant hire business promoting sustainable, zero emission, temporary power solutions designed specifically for the off-grid generation market.     

The launch of SHS provides a vehicle to acquire and hold AFC Energy H-Power Generator assets for hire to Speedy on commercial terms for subsequent rehire by Speedy to its customers. AFC and Speedy have agreed to initially jointly fund SHS up to £2.5m each, subject to JV performance, through initial equity subscriptions and subsequent shareholder loans. This will enable SHS to purchase 30kw H-Power Generators from AFC Energy. The first of these systems are expected to be available later this year, and Speedy and AFC Energy plan to manage the purchase of the H-Power Generators in line with the expected growing demand for zero emission power across the UK construction and temporary power market, which has been confirmed by the strong interest in H-Power Generators received by both Speedy and AFC Energy following the initial announcement. 

SHS will provide a full-service hire model co-ordinating the generator equipment, maintenance, technical support and telematics monitoring, site preparation and fuelling to Speedy and its customers. The H-Power Generators will be available for hire in the UK and Ireland exclusively from SHS through Speedy for an initial three-year period. SHS will also generate income from the procurement and on-sale of hydrogen to Speedy customers, as well as providing ancillary and engineering support to those customers not familiar with the adoption of hydrogen fuelled generators as part of their move to a more sustainable off-grid power solution.

SHS does not expect to hire employees nor commit to new facilities at this time. Speedy has agreed to support SHS with marketing, logistics and accounting support with AFC Energy providing technical, service and maintenance and on the ground commissioning capability. 

The H-Power Generators are being designed to work in harmony with Battery Storage Units supplied from Green Power Hire, a company recently acquired by Speedy. This hybrid power package (fuel cell and battery) highlights the importance of joined up technology development enabling customers to achieve both financial and environmental savings compared to alternative technologies on the market.   

Dan Evans, Chief Executive at Speedy Hire, said:

"Our JV with AFC Energy further strengthens our market leadership in combining product innovation and sustainability solutions that are increasingly critical and in demand from our customers. We continue to make progress in the delivery of our ambitious plan to be a net zero business by 2040 and, together with other recently announced developments like the acquisition of Green Power Hire, provide strong and unique evidence of our Velocity strategy in action."

Adam Bond, Chief Executive at AFC Energy, said:

"We are pleased to announce this exciting collaboration with the UK's leading plant hire business, Speedy Hire.  We have every confidence that the JV will support the UK and Irish construction sector's transition away from diesel towards its ambitious decarbonisation targets and represents a game changer in the way sustainable off-grid power is delivered to industry. With strong interest already evidenced from contractors and at industry events, we expect this venture to now raise the bar in sustainable off-grid power."

For further information, please contact:

About Speedy Hire

Founded in 1977, Speedy is the UK's leading provider of tools and equipment hire services to a wide range of customers in the construction, infrastructure, industrial, and support services markets, as well as to local trade, and retail. The Group provides complementary support services through the provision of training, asset management and compliance services. Speedy is certified nationally to ISO50001, ISO9001, ISO14001, ISO17020, ISO27001 and ISO45001. The Group operates from c.180 fixed sites and selected B&Q stores across the UK and Ireland together with a number of on-site facilities at client locations and through a joint venture in Kazakhstan.

About AFC Energy

AFC Energy plc is a leading provider of hydrogen energy solutions, to provide clean electricity for on and off grid power applications. The Company's fuel cell technology is now deployable as electric vehicle chargers, off-grid decentralised power systems for construction and temporary power with emerging opportunities across maritime, data centres and rail as part of a portfolio approach to the decarbonisation of society's growing electrification needs.