Speedy Hire and AFC Energy have unveiled a new joint venture business that will hire out hydrogen-powered generators.
Speedy Hydrogen Solutions has committed to an initial £2million order of H-Power generators, for delivery in the next six months.
Speedy Hire’s boss, Dan Evans, said the joint venture would offer ‘sustainability solutions that are increasingly critical and in demand from our customers’.
Joint venture: Speedy Hire and AFC Energy have unveiled a new joint venture business, Speedy Hydrogen Solutions
AFC Energy will sell the hydrogen-powered generators to Speedy Hydrogen Solutions, which will hire them out to Speedy Hire for it to then hire out to customers in the UK and Irish construction trade for an initial three-year period.
On top of the initial orders, AFC Energy will generate revenue from technical services and maintenance, and potentially get the chance to make more income by providing ancillary support and equipment.
The duo said Speedy Hydrogen Solutions was ‘a dedicated hydrogen powered generator plant hire business promoting sustainable, zero emission, temporary power solutions designed specifically for the off-grid generation market’.
It added: ‘SHS does not expect to hire employees nor commit to new facilities at this time.’
The initial agreement includes the committed £2million initial order, with the intention to boost orders up to around £4.7million across the first full contract year ending 31 October 2024.
Speedy Hire shareswere down 1.59 per cent or 0.55p to 34.15p on Wednesday morning, having fallen over 14 per cent in the last year.
Evans 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.’
Adam Bond, chief executive of AFC Energy, said: ‘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.’
Share shifts: Speedy Hire shares have fallen by around 14% in the last 12 months
