AFC Energy PLC (LON:AFC) says it is “encouraged by early market interest” in its AlkaMem membrane technology following tests by one of the world’s largest electrolyser manufacturers.

AlkaMem is a membrane for electrolysis, a process where electricity is used to cause chemical reactions that can produce elements such as hydrogen, aluminium or copper.

WATCH: AFC Energy’s Adam Bond discusses ‘key competitive advantage’ and revenue potential

While AFC currently uses AlkaMem in its own HydroX-Cell(S) hydrogen fuel cells, it says uses for the membrane extended beyond this into areas such as energy storage.

The company cited independent testing from Industrie De Nora, an Italian firm that develops electrodes and electrolysers, which said AlkaMem “exceeded internal expectations” for alkaline water electrolysis, a process which produces hydrogen.

AFC said AlkaMem offered opportunities across “new power-dense market segments” that it has been unable to penetrate previously, with global revenues for ionic membrane technologies estimated at over US$1bn per year.

The company added that it has already begun discussions with third parties around using AlkaMem through either licensing or co-development partnerships to find uses for the technology outside its own fuel cells.

“We believe AlkaMem…offers a true value proposition which we will aggressively seek to exploit through a sales, partnership and licensing model with our customers”, said AFC’s chief executive, Adam Bond.

In afternoon trading, AFC Energy shares were one of London’s top risers, up 34% at 9.40p.

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