Speedy confirms hydrogen joint venture
15 November 2023
Speedy Hire and AFC Energy have confirmed the launch of Speedy Hydrogen Solutions Ltd (SHS), a 50:50 joint venture company hiring hydrogen powered generators designed specifically for the off-grid generation market.
This follows on from the initial announcement as reported on the blog in August.
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 re-hire 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, with the first expected to be available later this year.
SHS will provide a full-service hire model supplying equipment, maintenance, technical support and telematics monitoring, site preparation and fuelling to Speedy and its customers. The hydrogen generators will be available for hire in the UK and Ireland exclusively from SHS through Speedy for an initial three-year period.
SHS says it 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 not familiar with the technology.
The generators are being designed to work in harmony with battery storage units from Green Power Hire, which Speedy acquired last month, as reported on the blog.
Dan Evans, Chief Executive at Speedy Hire, said: "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 [Speedy's five year transformation and growth plan] in action."
Speedy says that demand for such equipment is being driven by tendering requirements and emission regulations, with UK projects such as HS2 targeting the removal of diesel generators from all sites by 2029.
AFC Energy’s fuel cell technology is currently used for electric vehicle chargers, off-grid decentralised power systems for construction and temporary power, with emerging opportunities across maritime, data centres and rail.
