AFC Energy and Komatsu sign $2 million agreement to develop scalable ammonia-powered diesel engines for heavy equipment decarbonisation.
AFC Energy (AIM: AFC), a prominent provider of ammonia-based, low-carbon hydrogen production systems and hydrogen-to-power solutions designed to operate at commercially competitive price levels, has announced the signing of a Joint Development Agreement (JDA) with Komatsu Ltd. and its affiliate, Industrial Power Alliance Ltd. Komatsu is globally recognised as one of the leading manufacturers of construction, mining, forestry, and industrial heavy machinery. The company is publicly listed on the Tokyo and Osaka stock exchanges and holds an approximate market capitalisation of US$43 billion, underscoring its significant presence in the global heavy equipment sector.
The newly signed JDA establishes a collaborative framework under which AFC Energy and Komatsu will jointly design and integrate AFC Energy’s proprietary ammonia cracking technology with a Komatsu industrial internal combustion diesel engine. The primary objective of this partnership is to evaluate the feasibility of developing a new ammonia-fuelled engine platform capable of being scaled for commercial production. Through this initiative, the companies aim to explore an alternative fuel solution that could potentially reduce carbon emissions across Komatsu’s extensive portfolio of construction and mining equipment fleets.
AFC Energy’s ammonia cracking technology enables the conversion of ammonia into hydrogen, which can then be used as a cleaner energy source. By integrating this technology with a traditional diesel engine platform, the collaboration seeks to demonstrate that liquid ammonia can serve as a viable and lower-carbon fuel alternative, requiring only minimal modifications to existing internal combustion engine designs. If successful, this approach could represent a significant step forward in decarbonising heavy industrial machinery without necessitating a complete overhaul of current engine infrastructure.
The successful operational delivery of an ammonia-powered diesel engine under the terms of the JDA would validate the technical and commercial potential of running internal combustion engines on liquid ammonia. Such an achievement would open a substantial new vertical market for AFC Energy, expanding the application of its technology into the global heavy equipment industry, which represents a large and addressable market opportunity. For Komatsu and its customers, this could translate into a practical and scalable pathway to lowering emissions while maintaining performance standards expected in demanding industrial environments.
The total contract value of the JDA is approximately US$2 million, contingent upon the achievement of specific development milestones. This agreement aligns closely with AFC Energy’s strategic focus on delivering hydrogen-to-power solutions that are economically viable and do not depend on government subsidies. By targeting commercially sustainable deployment models, AFC Energy aims to accelerate the adoption of low-carbon energy technologies across multiple industrial sectors.
John Wilson, Chief Executive Officer of AFC Energy Plc, expressed enthusiasm about the partnership, highlighting that Komatsu’s commitment to the company’s ammonia cracker technology serves as strong industry validation. He noted that the agreement reinforces AFC Energy’s strategy of expanding into new industrial verticals while maintaining a commercially driven approach to decarbonisation. Wilson also emphasised the company’s ambition to strengthen its relationship with Komatsu and support heavy industries in reducing their carbon footprint through practical, scalable energy solutions.
Taisuke Kusaba, Chief Technology Officer of Komatsu Ltd., echoed this sentiment, stating that the collaboration represents an important step in exploring innovative methods to decarbonise Komatsu’s equipment fleets. He reaffirmed Komatsu’s broader objective of contributing to a sustainable society while supporting business growth and indicated that AFC Energy’s ammonia cracking technology could play a meaningful role in achieving these long-term sustainability goals.
