International law firm Trowers & Hamlins has provided legal services to AFC Energy (AIM: AFC), a prominent provider of hydrogen-powered generator technologies, on a significant regional distribution agreement with TAMGO, a subsidiary of the Zahid Group.
In this strategic partnership, TAMGO will assume responsibility for marketing, selling, and leasing AFC Energy’s environmentally friendly hydrogen-fueled H-Power Generators to end-customers across the MENA (Middle East and North Africa) region. This collaboration presents AFC Energy with a valuable entry point into the MENA region’s industrial and off-grid power markets, which boasted a total worth of US$1.6 billion in 2020 and are projected to double to US$3.2 billion by 2030.
Traditionally, off-grid power generation in remote areas and for construction projects has relied heavily on diesel generators, contributing significantly to carbon emissions. AFC Energy’s hydrogen fuel cell generators offer a promising alternative, with the potential to substantially reduce carbon output.
This partnership comes at an opportune moment, with the upcoming COP28 event set to be hosted in the United Arab Emirates in 2023 and increasing emphasis from regional governments on sustainability initiatives, such as Saudi Arabia’s Vision 2030.
The Trowers team was led by partner Adrian Jones (pictured), supported by associate Jessamyn Nock.
Commenting on the deal, Adrian Jones said:
“This agreement will give AFC Energy access to the strategically-important MENA region and we were pleased to have assisted them with the legal agreements. The MENA region’s off grid and renewable energy markets have enormous growth potential given the focus on sustainability and the volume of ongoing building and development which is happening or planned. The Neom project alone should require significant off-grid power and if you also want to push sustainability that power needs to come from low carbon and sustainable sources. AFC will be well positioned to satisfy this demand over the coming years.”