© AFC Energy

AFC Energy and Industrial Chemicals Group Ltd (ICL) have announced the formation of a 50:50 joint venture aimed at producing low-cost hydrogen from imported green ammonia. The JV will use AFC’s proprietary ammonia cracking technology and ICL’s logistics and procurement capabilities to deliver up to 500kg/day of hydrogen, targeting commercial rollout in early 2026.

The companies say the model eliminates the need for large-scale domestic hydrogen production facilities and government subsidies. Instead, it leverages existing global ammonia infrastructure to reduce capital expenditure and accelerate deployment.

Pilot Plant to Begin Operations in 2026

The JV plans to start operations with AFC Energy’s pilot ammonia cracking plant and hydrogen compression system in the fourth quarter of 2025, pending permits. Initial hydrogen output is expected to reach 400kg/day. This will be followed by the introduction of AFC’s Hy-5 portable cracker units, which will boost daily output to 500kg.

“This is an exciting step in delivering our strategy to achieve commercial viability of the hydrogen economy,” said AFC Energy CEO John Wilson. “We are delighted to collaborate with a partner of ICL’s capability and experience to deliver low-cost hydrogen at a market-disruptive price.”

The exact location of the plant and supply chain details remain undisclosed. However, the partners expect that from 2027, regular imports of green ammonia will become widely available in the UK.

Targeting Economic Viability and Net-Zero Goals

Ammonia is already a widely traded commodity, and its storage and transport infrastructure is significantly cheaper than that for hydrogen. This gives the JV a clear economic edge. Storing ammonia in low-pressure liquefied gas tanks costs far less than handling hydrogen, particularly green hydrogen produced via electrolysis.

The JV positions itself as a scalable solution to support the UK’s net-zero ambitions. The UK government recently allocated £500 million for hydrogen transport and storage infrastructure, aiming to establish its first regional hydrogen network by 2031. Still, the JV’s independence from public funding is seen as a competitive advantage.

By offering low-carbon hydrogen at reduced cost, AFC and ICL aim to serve industrial customers seeking alternatives to fossil fuels without waiting for large government-backed hydrogen hubs.

Disruption Through Deployment, Not Subsidies

The companies are clear: their business model is based on market dynamics, not policy incentives. This approach could prove attractive to sectors facing pressure to decarbonize but wary of uncertain hydrogen availability or high capital requirements.

With the pilot plant set for 2025 and first revenues expected by early 2026, the AFC-ICL JV may become a key player in the UK’s emerging hydrogen supply landscape—focusing on scale, speed, and cost.