On its first day of dealings, Clean Power Hydrogen or ‘CPH2’, a UK-based green hydrogen technology and manufacturing group, raised gross proceeds of £30.5m at 45p a share.
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.
The Group’s strategic objective is to deliver the lowest Levelized Cost of Hydrogen (LCOH) in the market in relation to the production of green hydrogen. It has developed the IP-protected Membrane-Free
Electrolyser (“MFE”), a technology which is already commercially available and demonstrating cost efficiencies and technological advantages to date, the firm explained.
Commenting on this morning’s AIM flotation, Jon Duffy, Chief Executive Officer of CPH2, told investors: “Today’s listing and oversubscribed placing, delivered in difficult stock market conditions, is an important milestone for CPH2 and will assist the rapid growth of the Group.”
The £30.5m funds raised in today’s placing is expected to further strengthen the Group’s financial position and will enable CPH2 to build out its Doncaster manufacturing operation.
Duffy said CPH2 is now in a position to continue significant investment into its research and development capacity and enhance its intellectual property “whilst establishing a stock of completed units to deliver the substantial and continually growing opportunity pipeline.”
The Group designs and manufactures hydrogen production units that incorporate its MFE technology which, in combination with cryogenic gas separation, delivers hydrogen and oxygen in separate streams.
When the Group’s MFE is supplied by renewable electricity it delivers green hydrogen with a purity of up to 99.999% and medical grade oxygen.
CPH2 had a contracted orderbook of 4MW for delivery in 2022, and it said it holds ‘an established pipeline of new opportunities at varying stages of development, including active discussions with current and quoted customers in respect of potential orders over 160MW.’
CPH2 believes it has a flexible route to market: it said the intellectual property protection it has obtained enables it to pursue international joint ventures and licensing arrangements.
In addition, the company has highlighted the fast-growing nature of the hydrogen market. The development of the hydrogen economy is forecast to lead to a 650x increase in European demand for electrolysers by 2030, with an EU electrolysis capacity target equivalent to 40GW.
In response, this requires an investment of up to around €47bn towards electrolysers producing 10 million tonnes/year of renewable hydrogen, the company informed investors.
CPH2 is aiming to become a globally recognised and highly-profitable designer, manufacturer and licensor of its MFE technology and is targeting 4GW production capacity by 2030.
If met, this target would be equivalent to a 10% market share of the projected EU market, albeit the Group is aiming for traction with customers across the global marketplace, where required electrolyser capacity is estimated to reach 100GW within the same time frame.
In a ‘rapidly-developing market place’, the Directors told investors that they believe CPH2 is well placed to benefit from ‘the favourable commercial and regulatory drivers’ as the demand for hydrogen becomes increasingly central to the delivery of global ‘net zero’ commitments.
CPH2, which is now listed on the AIM market of the London Stock Exchange (AIM: CPH2), was previously awarded the Green Economy Mark by the LSE, which recognises listed companies that derive more than 50% of their revenues from the green economy.
“CPH2 has an opportunity to penetrate an extremely fast-growing hydrogen market and aims to become a globally recognised, highly profitable designer, manufacturer and licensor of its MFE technology, an opportunity further advanced by the move onto the public markets.
“We are confident in our ability to deliver on the opportunities ahead and I look forward to providing updates on our progress as our business develops,” added CEO, Jon Duffy.
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