Speedy finalises hydrogen genset JV
15 November 2023
Speedy Hire and hydrogen genset supplier AFC Energy have launched Speedy Hydrogen Solutions Ltd (SHS), a 50:50 joint venture company dedicated to renting hydrogen fuel cell powered generators.
The JV anouncement - which follows an initial statement on 28 July this year - will see SHS buy AFC Energy 30kW H-Power Generators. The gensets will be rented to Speedy on commercial terms for subsequent rehire to Speedy’s customers.
AFC and Speedy will both invest £2.5 million in the venture, through equity subscriptions and subsequent shareholder loans.
SHS has committed to an initial order from AFC of £2 million for delivery through the first six months of 2024, with the aim to increase that to £4.7 million for the full year, starting 1 November 2023.
The first gensets are expected to be available later this year in the UK and Ireland. Speedy and AFC said they would purchase further gensets in line with the growing demand for zero emission power across the UK construction and temporary power market.
Speedy said the strong interest in hydrogen gensets had been confirmed by the level of interest following the July announcement.
SHS will provide a full-service rental model for the hydrogen sets, including maintenance, technical support, telematics monitoring, site preparation and fuelling to Speedy and its customers. SHS will also generate revenue from the sale of hydrogen to Speedy customers.
The hydrogen sets will be available exclusively to SHS for a three year period.
The joint ventrurte is not recruiting staff or opening new locations. Speedy will support SHS with marketing, logistics and accounting support, and AFC will provide technical, service and maintenance and on the ground commissioning.
The H-Power Generators are being designed to work alongside battery storage units supplied from Green Power Hire, a company recently acquired by Speedy. Speedy said this hybrid package of fuel cells and batteries “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.”
The chief executive of AFC, Adam Bond, added; “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.”