Speedy joint venture commits to £4.7m of hydrogen generator sales

AFC Energy hybrid generator

Speedy Hire and AFC Energy have released details of their dedicated hydrogen powered generator plant hire business.

Under the deal Speedy has committed to an initial order of £2m worth of generators for the next six months with the intention to increase orders up to c.£4.7m across the first full contract year (commencing 1 Nov. 2023).

This collaboration which follows the successful launch of AFC Energy’s H-Power Generators last year, will provide the UK construction and temporary power market with AFC Energy’s sustainable, zero emission temporary power solutions designed specifically for the off-grid power market.

The collaboration will take the form initially of AFC Energy providing Speedy with its existing H-Power Tower Generators on a cross-hire basis on commercial terms.

A 50:50 joint venture the new business will initially purchase 30kW H-Power Generators from AFC Energy for £2m and be available for hire this year. 

Beyond this they plan to increase orders for H-Power Generators in line with the expected growing demand for zero emission power across the UK construction and temporary power market.

To fund the first contract year’s orders, an initial total equity injection into the joint venture company of £1.25m (£0.625m each) will be made, funded out of each company’s cash reserves.

Extra funding will become payable into the venture in the form of interest bearing loan notes from both Speedy and AFC Energy.

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 sustainable plant hire business, Speedy Hire.  We have every confidence that SHS will support the UK and Irish construction sector’s transition away from diesel towards its ambitious decarbonisation targets, representing 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 the delivery of sustainable off-grid power.”