New Licence Agreement and Sales Contract

Clean Power Hydrogen

04 November 2024

 

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.

4 November 2024                                                                                     

Clean Power Hydrogen plc

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

New Licence Agreement and Sales Contract with Hidrigin

CPH2, the UK-based green hydrogen technology and manufacturing company that has developed the IP-protected Membrane-Free Electrolyser ("MFE"), is pleased to announce that it has entered into a Licence Agreement (the "Licence Agreement") with Lisheen H2 Energy Park Limited, which trades under the name Hidrigin ("Hidrigin"). In addition to signing the License Agreement, the parties have entered into a Sales Contract for the delivery of a 1MW MFE220 electrolyser unit by CPH2.

Highlights:

·    The Licence Agreement grants Hidrigin the right to manufacture up to 2GW's of MFE220 units in Ireland to connect with its own Solar PV & Wind Farms across the world for its own use. 

·    Under the Sales Contract, Hidrigin will purchase a 1MW MFE220 electrolyser from CPH2 with delivery expected in 2025.

·    Hidrigin will outsource the manufacturing of MFE units to Jones Engineering Manufacturing Limited ("Jones Engineering"), a global engineering contractor.

·    Hidrigin intends to commence the manufacture of its first 1MW MFE220 unit at the Jones Engineering manufacturing facility in Co. Carlow, Ireland, in 2025.

·    Hidrigin also plans to build a manufacturing facility in Lisheen BioEnergy Campus as it scales up manufacturing of its MFE220's

·    Hidrigin has agreed terms to sell its Green Hydrogen which will be produced in Lisheen as part of its Pilot Project to a number of commercial off takers.

·    Hidrigin has €100m funding terms in place to build out the renewable energy development together with its Green Hydrogen Pilot Project commencing in 2025

·    Hidrigin's goal is to develop €500m of its own Renewable Energy projects together with its Manufactured MFE220 Electrolysers across Europe by 2030

·    Hidrigin has appointed Lagan MEICA as its technical advisor to advise on the construction commissioning and installation of its MFE220 Electrolysers.

The Licence Agreement between Hidrigin and CPH2 covers the construction of 2GW of MFE electrolysers in Ireland over a period of up to 20 years. Under the terms of the Licence Agreement, the manufactured electrolysers will be exclusively used by Hidrigin and cannot be sold to third parties. CPH2 will receive a fee in staged payments for the licence upon meeting certain milestones which the Company expects will be achieved within the next two years, as well as revenues from the sale of components and a technology fee per unit manufactured. The Company expects that Hidrigin will commence manufacturing its first MFE220 unit under the Licence Agreement in 2025.

Hidrigin will contract the manufacturing of MFE220 units to global engineering contractor Jones Engineering, at its manufacturing facility in Co. Carlow, Ireland. Jones Engineering is a global leader in mechanical, electrical, and fire protection services, with over 130 years' of experience. Specialising in sectors such as life sciences, data centres, healthcare and renewable energy. Jones Engineering offers turnkey solutions, including modular manufacturing and offsite fabrication. Known for their innovation and commitment to sustainability, Jones Engineering supports complex projects worldwide, from design through to ongoing maintenance, ensuring efficiency and quality across diverse industries.

As well as contracting Jones Engineering for the manufacture of MFE220 units, Hidrigin has appointed Lagan MEICA as its technical advisor to advise on the construction commissioning and installation of MFE units. At a future date, Hidrigin plans to build a manufacturing facility in Lisheen BioEnergy Campus as it scales up manufacturing of MFE units'.

Hidrigin plans to utilise the MFE220 across its own Solar PV & Wind Farms across the world and has agreed terms to sell its Green Hydrogen which will be produced in Lisheen as part of its Pilot Project to a number of commercial off takers. Hidrigin has €100m funding terms in place to build out its renewable energy development together with its Green Hydrogen Pilot Project commencing in 2025. Ultimately, Hidrigin has a goal of developing €500m of its own Renewable Energy projects together with its Manufactured MFE220 Electrolysers across Europe by 2030.

Jon Duffy, CEO of Clean Power Hydrogen commented:

"Our licence agreement and sales contract with Hidrigin showcases the increasing customer demand for, and belief in, our MFE technology, underpinned by the recent successful FAT. Our goal remains to produce electrolyser capacity of approximately 1GW at CPH2 facilities and 3GW under licence, and today's announcement gives a good indication of how we will look to achieve that. Licensing agreements are a key part of our business model, helping to scale the business globally and accelerate market penetration of our groundbreaking technology by leveraging the resources of competent partners."

Eric Whelan, CEO of Hidrigin commented:

"CPH2's proven technology is a brilliant low-cost solution to the production of green hydrogen. We are excited to be able to use this technology for our projects here in Ireland and across the world, where the opportunity for green hydrogen production together with renewable energy generation is unparalleled. We look forward to working with CPH2 and with our expert partners at Jones Engineering to build and deploy our electrolysers. We are also delighted to be engaging Lagan MEICA to advise and install our electrolysers, which in turn supports Ireland and Europe's renewable green hydrogen production goals."

ENDS

For more information, please contact:

Clean Power Hydrogen plc	via Camarco
Jon Duffy, Chief Executive Officer
James Hobson, Chief Financial Officer
Cavendish Capital Markets Limited - NOMAD & Broker
Neil McDonald	[phone]
Peter Lynch	[phone]
Adam Rae	[phone]
Camarco PR	[phone]
Billy Clegg
Owen Roberts
Kirsty Duff

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

Overview of CPH2

CPH2 is the holding company of Clean Power Hydrogen Group Limited 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. CPH2 is listed on the AIM market and trades under the ticker LON:CPH2.

 

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