AFC Energy grows Saudi presence through exclusive distribution deal
TAMGO will market and sell or lease to end-customers AFC Energy's hydrogen fueled H-Power Generators in the industrial and off-grid power markets in the Kingdom of Saudi Arabia and a further 16 countries in the MENA (Middle East North Africa) regions.
This move aligns well with AFC’s growth strategy, with the rental power market projected to reach US$3.2bn by the end of 2030. TAMGO will have exclusive dealership rights in the region for AFC’s fuel cell technologies, which include name plated generators ranging from 10kW to 200kW.
TAMGO is a group company of one of Saudi Arabia's leading multi-nationals, the Zahid Group, which also owns Altaaqa, and operates one of the world's largest mobile power modules rental fleets. The latest agreement supercedes and builds on the initial Memorandum of Understanding signed between Altaaqa and AFC Energy in April 2021.
Adam Bond, Chief Executive, AFC Energy, said: "We are delighted that TAMGO will represent our leading H-Power Generator platforms in the Saudi and neighbouring markets at a time when sustainable, temporary power is forecast to materially increase, consistent with national programmes such as Saudi Arabia's sustainability commitments under the Kingdom's Vision 2030. We have been collaborating with TAMGO and the Zahid Group for the past two years and believe this dealership agreement reflects our common vision to become the largest dealer of hydrogen fuel cell generators in the Saudi and MENA regions."
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A significant milestone for AFC Energy as it continues to build its presence in Saudi and the MENA region.
With the company’s hydrogen fuel cells and carrier fuels, businesses can access clean and reliable power sources, helping them reduce their environmental impact and operate efficiently even in areas without traditional grid access. AFC’s hydrogen carrier fuels take the form of ammonia or methanol. They are energy dense, resulting in a lower storage and transportation cost than pure hydrogen. These hydrogen carriers are increasingly available in green form known as e-fuels, ensuring the process to produce them is net zero.
Progress being made by AFC in the MENA region is apt given the recent momentum surrounding renewable energy, particularly in Saudi Arabia and Egypt. In 2021, Saudi Arabia launched a Saudi Green Initiative, which includes thirteen renewable energy projects with a combined capacity of 11.3 GW that could help reduce 20 million tons of carbon emissions per year.
Egypt also recently accounced 9 MOUs on feasibility studies on the production of green hydrogen and green ammonia, with the nine projects worth around $83 billion. These two examples demonstrate the accelerating shift towards renewables in the MENA region, with AFC’s hydrogen-fueled H-Power Generators well-placed in this market.
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