AFC Energy plans to use the net proceeds to provide operating capital for the development to commercialization of its fuel cell systems. Six of the company’s directors participated in the placing, including all four executive directors.

Application will be made to the London Stock Exchange for the new shares to be traded on the Alternative Investment Market (AIM). It is expected that admission will become effective and that dealing will commence on December 10.

‘We are delighted both to receive a combination of support from existing shareholders, and to welcome new shareholders who recognize the enormous opportunity of AFC Energy’s fuel cell system,’ says Ian Balchin, Chief Executive of AFC Energy.

‘Work on our large-scale, c. 50 kW fuel cell system began earlier in the year, and it is being developed in parallel with our 3.5 kW Alpha System,’ continues Balchin. ‘Results from the extended customer testing of the Alpha System during 2010 will be directly applicable to the large-scale system, which enables us to accelerate its commercialization.’

AFC Energy plans to engage with third parties to assemble fuel cell units on its behalf, to benefit from economies of scale. The company believes that this approach is less capital-intensive and lower-risk than setting up its own fuel cell assembly facility.

‘We are highly confident that our first large-scale commercial fuel cell system product will be available during 2011,’ says Balchin.