Revised Agreement with ATOME Energy

Clean Power Hydrogen

28 November 2023

 

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 which is part of UK law by virtue of the European Union (withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

28 November 2023

Clean Power Hydrogen plc

("CPH2", the "Company" or the "Group)

Revised Agreement with ATOME Energy

CPH2, the UK-based green hydrogen technology and manufacturing company that has developed the IP-protected Membrane-Free Electrolyser ("MFE"), provides an update on its contract with ATOME Energy plc ("ATOME") for a single 1MW MFE220 electrolyser placed in March 2022.

CPH2 and ATOME have reached a mutual agreement to cease the previous production order made by ATOME. The CPH2 Board of Directors considers it is in the Company's best of interests to focus its engineering and installation resources in ensuring roll out MFEs with current partners Fabrum Solutions Limited, KCA Deutag and their longstanding customer, Northern Ireland Water.

As part of the agreement, ATOME has requested, and CPH2 has agreed to, a non-binding framework agreement with G-Mobility, a subsidiary of Molecular Energies plc ("Molecular Energies plc"), the South American focused energy company, to explore a licencing agreement for the manufacture and sale of CPH2's MFEs in the Mercosur group of countries in South America. Molecular Energy is a 20 per cent. shareholder in ATOME.

G-Mobility's interest in a non-binding framework agreement is a strong indication of support of CPH2's differentiated technology relative to its competition in terms of cost, efficiency, reliability and scalability.  The agreement will allow for the future production of electrolysers in Paraguay to serve the Latin American market using CPH2's technology and experience. 

CPH2 has a 2030 production target of 4GW per year, with 1GW made at its own facility and the rest manufactured under licence by other companies. Through the licencing model, companies will have access to CPH2's innovative MFE technology whilst having the flexibility to oversee its own production and delivery schedules, using its own capital.

CPH2 continues to focus on the delivery and successful commercialisation of CPH2's technology, with the Company's first MFE110 unit expected to be delivered to Northern Ireland Water's site following the completion of the Factory Acceptance Test ("FAT"), following that it will undergo site validation, integration and commissioning before beginning commercial production of hydrogen and medical grade oxygen.

Jon Duffy, CEO of Clean Power Hydrogen commented:

"I am pleased to be continuing our working relationship with ATOME as we engage in a licencing agreement with Molecular Energies and G-Mobility that allows ATOME to have on-going exposure to our ground-breaking technology, while allowing us to focus on the delivery of purchase orders to customers in the UK and Europe. Extending CPH2's technology through our licencing model empowers us to accelerate market penetration, creating a sustainable, long-term revenue stream for CPH2 without the necessity for substantial upfront capital expenditures."

Peter Levine, Chairman of ATOME Energy commented:

"ATOME has a longstanding, successful relationship with CPH2 and we are excited to see CPH2 working with Molecular Energies and G-Mobility. G-Mobility looks forward to pursuing discussions on the framework agreement."

For more information, please contact:

Clean Power Hydrogen plc	via Camarco
Jon Duffy, Chief Executive Officer
James Hobson, Chief Financial Officer
Cavendish Securities plc - NOMAD & Broker
Neil McDonald	[phone]
Peter Lynch	[phone]
Adam Rae	[phone]
Camarco PR	+ 44(0) 20 3757 4980
Billy Clegg
Owen Roberts
Lily Pettifar

To find out more, please visit: https://www.cph2.com

Overview of CPH2

CPH2 is the holding company of Clean Power Hydrogen Group Limited ("Clean Power") which has almost a decade of dedicated research and product development experience. This experience has resulted in the creation of simple, safe and sustainable technology which is designed to deliver a modular solution to the hydrogen production market in a cost-effective, scalable, reliable and long-lasting manner. The Group's strategic objective is to deliver the lowest LCOH in the market in relation to the production of green hydrogen. The Group's MFE technology is already commercially available and demonstrating cost efficiencies and technological advantages. CPH2 is listed on the AIM market and trades under the ticker LON:CPH2.

 

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