AFC Energy has unveiled the “world’s first” containerised and portable ammonia cracking module capable of offering grey hydrogen at £10/kg ($12.70/kg).
The UK-based company told H2 View that it based its pricing on grey ammonia, as it remains the industry standard. The company added that green ammonia is not yet widespread enough to establish a reliable price.
Hy-5 was announced during the company’s 2024 full-year financial results. AFC states it will be capable of producing up to 500kg/day once it’s available in 2026, offered as a plug-and-play under a ‘fuel as a service’ solution.
At £10/kg, AFC’s hydrogen offering is significantly more competitive than GeoPura’s estimated costs for non-low carbon hydrogen standard production (£25.40/kg) and green hydrogen (£47.02/kg) in the UK.
The company’s pricing could suggest it has found a way to mitigate ammonia reconversion costs too, which the Hydrogen Council warned could push landed hydrogen prices up to $8/kg.
AFC Energy noted that the Hy-5 unit can utilise ammonia from any source. “Green ammonia costs are expected to drop significantly in the coming years, with new plants driving prices closer to parity with grey ammonia by the end of the decade,” a company representative told H2 View.
AFC Energy has claimed the hydrogen output will be 99.9% purity, making it suitable for its other fuel cell generator products, with a power consumption of less than 9.5kWh per kilogramme of hydrogen produced.
Hy-5 eliminates the need for grid power or renewables, avoiding the land, permits, grid connections, and high capex typically required for electrolysers.
The firm sees Hy-5’s potential in hydrogen refuelling for heavy transport, off-grid EV charging, and industrial use in steel, glass, and chemicals.
John Wilson, Chief Executive of AFC Energy, highlighted the UK’s lack of infrastructure and high costs of hydrogen production as the biggest challenges to scaling the industry.
Wilson added, “With the launch of Hy-5, AFC Energy has removed these, launching on-site supply at a market disruptive price point.”
In 2025, AFC Energy is doubling down on cost-competitive hydrogen solutions, focusing on low-cost, onsite production to achieve price parity with diesel. While success could drive scale in construction, off-grid, and heavy industry, funding, costs, and market readiness remain key hurdles.
From 2026, AFC Energy expects Hy-5 hydrogen and its fuel cells to match the total cost of ownership (TCO) of Stage 5 diesel generators.
AFC Energy’s revenue surged from £0.2m to £4m in 2024, driven by H-Power Generator sales, with a £15.4m cash reserve expected to last until March 2026. However, post-tax losses held steady at £17.4m as the company continued investing in commercialisation.
