Under the 50:50 partnership, ICL will procure and manage ammonia supplies, leverage its existing logistics network to transport the fuel safely, and connect the resulting hydrogen to its established industrial customer base.

The hydrogen produced will then be marketed and sold jointly, targeting users who need low-carbon, cost-competitive hydrogen without major new infrastructure.

“By harnessing ammonia, we can provide customers with cost-effective, low-carbon hydrogen without the need for large-scale, capital-intensive domestic hydrogen facilities,” ICL’s statement said.

“Leveraging ammonia’s role as a globally traded commodity with existing storage and infrastructure will unlock a flexible and economically viable supply chain for the UK.”

AFC will provide the technology, starting with its containerised Hy-5 systems, each producing 500kg per day of hydrogen.

The portable crackers are set to be rolled out initially in the UK construction sector, where the company believes they can reach a figure of £10/kg.

AFC’s new CEO, John Wilson, previously told H2 View that this would be cheap enough the compete with diesel generators on a total cost of ownership basis.

The partnership builds on AFC’s commitment to deliver unsubsidised, low-cost hydrogen in markets where high power prices make electrolysis uneconomic.

ICL added that the JV is “just the beginning of a broader opportunity to transform industries and support the UK’s climate goals.”