British startup AFC Energy to receive investment from Roman Abramovich

Company Ervington Investments Ltd, controlled by Roman Abramovich, has acquired 15% of UK startup AFC Energy that works in the development and commercialization of electric elements on hydrogen. So far, the company is unprofitable: in 2011 its net loss was by more than a hundred times superior to the income.

The main commercial application of AFC Energy’s technology is the recycling of chlorine industry’s production cycle a side element of which is hydrogen. The amount of the transaction between Ervington and AFC was ?8,67M. Under the shareholders' agreement, Ervington cannot sell its stake to AFC Energy during one year. The company of Roman Abramovich obtained the right to appoint two representatives to AFC’s board of directors.

According to AFC, the amount of hydrogen produced by the chlorine industry to the global atmosphere is sufficient to provide 3 GW of generation capacity. The advantage of AFC’s technology is low temperature of reaction (70°), which makes it possible to save on materials, higher maximum power modular unit (up to 200 kW) which makes its usage on the production area cost-effective. The production is in the pilot stage. The revenue of the company in 2011 is ?35,5K and the net loss is ?3,99M.