AFC Energy’s 2025 Pivot: How Ammonia Cracking is Fueling a New Hydrogen Strategy

Industry Adoption: AFC Energy’s Strategic Shift from Fuel Cells to a Full Hydrogen Ecosystem

Between 2021 and 2024, AFC Energy’s adoption strategy was centered on demonstrating the viability of its alkaline fuel cell (AFC) technology in displacing diesel generators. The company secured a series of high-profile pilot deployments across various sectors, validating its technology in real-world applications. These included powering construction sites with partners like Mace, Kier, and ACCIONA in Spain; providing zero-emission energy for the Extreme E racing series; and developing solutions for high-power EV charging with ABB. During this period, the company’s ammonia cracking technology was largely in the R&D and validation phase. A major breakthrough was announced in March 2024, when its cracker reactor demonstrated high efficiency, requiring only 9.5kWh of power per kilogram of hydrogen produced. This technical success, combined with the launch of its Hyamtec subsidiary in September 2024, laid the groundwork for a major strategic shift, moving ammonia cracking from a research project to a core commercial pillar.

The year 2025 marks a significant inflection point where AFC Energy transitioned from technology demonstration to aggressive commercialization, with ammonia cracking at the heart of its strategy. Recognizing that hydrogen logistics are a primary barrier to adoption, the company has pivoted to providing an integrated solution. This is evidenced by the April 2025 launch of the “Hy-5,” a modular, portable ammonia cracker capable of generating up to 500 kg of hydrogen per day. This product launch was immediately followed by a series of pivotal commercial partnerships. In June 2025, AFC Energy signed a Joint Development Agreement (JDA) with an undisclosed S&P 500 industrial giant to develop a full range of crackers, targeting applications from small-scale power to large-scale portside operations. This was complemented by an August 2025 50:50 joint venture with Industrial Chemicals Group Limited (ICL) to specifically develop, own, and operate ammonia cracking projects for off-grid power markets. This rapid succession of product launches and high-caliber partnerships shows that industry adoption is moving beyond isolated fuel cell pilots to building a complete, localized hydrogen supply chain, a critical step for achieving mainstream commercial viability.

Table: AFC Energy Investment and Fundraising Activities

Table: AFC Energy Strategic Partnerships and Collaborations

Geography: AFC Energy’s Expanding Global Footprint

Between 2021 and 2024, AFC Energy’s geographic activity was largely centered in the UK and Europe. Initial commercial pilots with construction firms like Kier and Mace took place on UK sites, establishing a domestic market for diesel generator displacement. The company’s European footprint expanded through a manufacturing partnership with Zollner in Germany and a key technology demonstration with ACCIONA on a construction site in Spain. A notable strategic entry into a new market occurred in late 2024 with the agreement to deploy a 45kVA H-Power System in Saudi Arabia via its partner TAMGO, signaling early ambitions in the MENA region.

From 2025 onwards, AFC Energy’s geographic focus has broadened significantly, reflecting its more aggressive commercial strategy. The UK remains a core market, solidified by the Speedy Hydrogen Solutions hire venture and the new ICL joint venture, which will develop ammonia cracking projects to serve UK off-grid power markets. However, the international dimension has grown in importance. The delivery of a high-power 200kW generator to Riyadh for the Extreme H race series underscores a deepening commitment to the MENA region, a market with substantial government support for hydrogen initiatives. Furthermore, the JDA with an unnamed S&P 500 industrial company strongly suggests a strategic push into the North American market. This geographic expansion indicates a shift from localized, proof-of-concept deployments to targeting large, high-growth international markets where the demand for off-grid, zero-emission power is accelerating.

Technology Maturity: AFC Energy’s Journey to Commercial Readiness

From 2021 to 2024, AFC Energy’s focus was on moving its technologies from development to validation. Its H-Power fuel cell generators were successfully deployed in multiple pilot projects, from construction sites (ACCIONA, Kier) to high-performance applications (Extreme E). This period culminated in the delivery of its most powerful 200kW S+ Series generator in December 2024, proving its capability in higher-power segments. Concurrently, its ammonia cracking technology was in the advanced R&D and pilot stage. The March 2024 announcement of high cracking efficiency (9.5 kWh/kg H2) and the operation of a 400 kg/day pilot cracker were critical validation milestones, proving the underlying science and preparing it for commercialization.

The year 2025 marks the transition from validation to *productization and commercial deployment*. The launch of the “Hy-5” ammonia cracker in April 2025 transformed the technology from a bespoke pilot project into a modular, off-the-shelf product. This was a crucial step towards scalable deployment. Further evidence of this maturity is the JDA with an S&P 500 partner to develop a *range* of crackers and the ICL joint venture to *deploy* these systems in commercial projects. The technology is no longer just being tested; it is being packaged, sold, and integrated into commercial business models. Similarly, the 85% cost reduction in the 30kW generator, coupled with the Volex manufacturing partnership, moves the fuel cell from a niche, high-cost technology toward a mass-market solution aiming for price parity with diesel. This clear shift from proving the technology works to making it commercially viable and scalable is the defining trend of 2025.

Table: SWOT Analysis of AFC Energy’s Strategic Position

Forward-Looking Insights and Summary: What to Watch in AFC Energy’s Commercial Push

AFC Energy’s activities in 2025 signal a clear and aggressive pivot from R&D to commercialization, with ammonia cracking now serving as the lynchpin of its entire strategy. The company has moved beyond simply selling fuel cells to architecting an end-to-end hydrogen power ecosystem. The year ahead will be a test of execution. Market actors should closely monitor three key signals that will determine the success of this strategic shift.

First, the operational ramp-up with manufacturing partner Volex is critical. Watch for announcements on production volumes and whether the 85% cost reduction can be maintained or improved at scale. This will be the ultimate validation of the company’s claim to be on a path to diesel price parity. Second, the progress of the joint venture with Industrial Chemicals Group (ICL) will be a primary indicator of market traction for the ammonia cracking business model. The announcement of the first integrated cracker and fuel cell deployment under this JV will be a watershed moment. Finally, any news related to the JDA with the unnamed S&P 500 industrial partner—particularly the partner’s identity and the unveiling of co-developed cracker prototypes—will be a major catalyst, providing significant validation for the technology and opening doors to global markets. AFC Energy has laid out an ambitious roadmap for commercial viability by 2026; the success of these partnerships in the coming year will determine if that goal is achievable.

Frequently Asked Questions

What was AFC Energy’s primary focus before 2025, and how did it change?
Before 2025, AFC Energy focused on demonstrating the viability of its alkaline fuel cell technology through pilot projects, like displacing diesel generators on construction sites and in EV charging. In 2025, the company made a strategic pivot to aggressive commercialization, making its ammonia cracking technology a core pillar of the business to provide a complete, integrated hydrogen ecosystem.

Why is ammonia cracking so important to AFC Energy’s new strategy?
Ammonia cracking is crucial because it solves the primary barrier to hydrogen adoption: logistics and supply. By using ammonia—which is easier to transport and store—as a carrier, AFC Energy can generate hydrogen locally. The launch of its portable “Hy-5” cracker and key partnerships to deploy this technology show it is central to enabling a localized, on-demand hydrogen supply chain.

What key partnerships in 2025 signal AFC Energy’s shift to commercialization?
In 2025, AFC Energy secured several pivotal partnerships focused on scaling and commercial deployment. These include a Joint Development Agreement with an S&P 500 industrial giant to develop a range of ammonia crackers, a 50:50 joint venture with Industrial Chemicals Group (ICL) to operate ammonia cracking projects for off-grid power, and a manufacturing partnership with Volex to scale up production and reduce generator costs by 85%.

Is AFC Energy profitable, and how is it funding this new strategy?
No, AFC Energy is still in a pre-revenue/pre-profitable stage, with a goal of reaching commercial viability by 2026. The company is funding its strategic shift through successful fundraising. Notably, it raised £27.5 million in July 2025 and £15.8 million in June 2024 specifically to finance the commercial rollout of its fuel cell and ammonia cracking technologies and to scale manufacturing.

What are the main risks AFC Energy faces with its new 2025 strategy?
The primary risk has shifted from technological uncertainty to execution risk. The company’s success is now heavily reliant on the successful implementation of its new, complex partnerships. Its ability to achieve its 2026 commercial viability goal depends on partners like Volex, ICL, and the unnamed S&P 500 firm meeting critical production, cost reduction, and deployment targets.