Clean Power Hydrogen Manufacturing Agreement with Fabrum Solutions Ltd (3251O)

TIDMCPH2

RNS Number : 3251O

Clean Power Hydrogen

31 January 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.

31 January 2023

Clean Power Hydrogen Plc

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

Manufacturing Agreement with Fabrum Solutions Ltd

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 executed a manufacturing agreement with New Zealand based Fabrum Solutions Ltd ("Fabrum") (the "Agreement"), one of the world's leading cryogenic systems manufacturers for gas separation and hydrogen liquefaction. Fabrum is the result of the merger between Fabrum Solutions and AFCryo, the Company's supplier of the cryogenic systems since 2020.

Highlights:

-- Pursuant to the terms of the Agreement, Fabrum will have the right to manufacture MFE220 units in New Zealand on a non-exclusive basis.

-- In addition, CPH2 has granted Fabrum a non-exclusive license to sell CPH2 products in New Zealand and Australia whereby CPH2 will receive a technology fee per unit.

-- CPH2 can order units to be produced by Fabrum in New Zealand and Australia for new and existing CPH2 customers, with cost and profit-sharing arrangements for such orders included in the Agreement.

   --    First MFE220 container already shipped to Fabrum's facility in New Zealand for completion and commissioning. 

The Agreement, which will be effective for a period of ten years, will allow an acceleration of the roll out of the Company's technology across Australia and New Zealand as the market for hydrogen grows rapidly. The Agreement, which is CPH2's first in the region, aligns with CPH2's objectives to license out manufacturing of the MFE220 to accelerate the delivery of the technology to an ever-growing market.

The Agreement strengthens the working and strategic relationship between the two companies possessing symbotic, patented technologies which advance Membrane Free Electrolysers. CPH2 has already shipped the first MFE220 to Fabrum's facilities in New Zealand where it will completed and fitted out with the remaining components and commissioned for use.

In December 2022, it was announced that CPH2 and Fabrum had executed a development agreement for the purposes of the technical development of CPH2's MFE. Under the terms of this agreement, Fabrum has been working with CPH2 and its existing industry partner Kenera Energy Solutions ("Kenera"), to provide engineering expertise in support of design reviews, systems documentation and safety cases. CPH2 has also executed a deed of variation to its existing supply agreement with Fabrum to allow it to purchase DPWG Cryocoolers for embedding in its MFE products on an exclusive basis.

CPH2 is committed to its strategic target of 4GW MFE annual production by 2030; of this 1GW will be in-house manufacturing and assembly and 3GW will be via license agreements such as that agreed with Fabrum. Interest in CPH2's innovative and disruptive hydrogen electrolyser technology continues to grow and our agreement with Fabrum will allow for faster scale up and market penetration in Australia and New Zealand.

Jon Duffy, Chief Executive Officer of CPH2, commented:

"I am delighted to extend our working relationship with Fabrum, the world leaders in cryogenic systems and hydrogen liquefaction through the manufacturing and licensing deal. The collaboration between CPH2 and Fabrum will allow for CPH2's MFE technology to be used across Australia and New Zealand, where the green hydrogen sector is rapidly developing. We look forward to continuing working with the team at Fabrum in the future."

Christopher Boyle, Managing Director of Fabrum, commented:

"We see the CPH2 technology as a world beating, low-cost solution to the production of green hydrogen, which is why we are adding to our development agreement with CPH2 with a full-scale manufacturing agreement. We are excited to be able to offer CPH2's world leading MFE technology across New Zealand and Australia. We have been experiencing strong demand for hydrogen solutions across various industries in this part of the world. Our close partnership with CPH2 will enable delivery of such solutions at a faster pace."

For more information, please contact:

 
 Clean Power Hydrogen Plc                  via Camarco 
 Jon Duffy, Chief Executive Officer 
  James Hobson, Chief Financial Officer 
 
 Cenkos Securities plc - NOMAD & Broker 
                                           [phone] 
 Neil McDonald                              9771 
                                           [phone] 
 Peter Lynch                                9772 
                                           [phone] 
 Adam Rae                                   9778 
 
                                           + 44(0) 20 3 757 
 Camarco PR                                 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.

Overview of Fabrum

Fabrum is headquartered in Christchurch, New Zealand and leads the world in industrialized small to medium scale liquefaction systems and composite cryogenic vessels.

The company is actively deploying end to end liquid hydrogen solutions globally across heavy transport, mining and aviation markets. Core competencies include green hydrogen production, storage, dispensing and system integration.

Fabrum also has a strong presence in the traditional cryogenic markets of liquid nitrogen (LIN), liquid oxygen (LOX), LNG and Liquid Air (LAIR) with customers ranging from Animal husbandry, Hi-tech research institutions, Manufacturing and Defense forces.

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January 31, 2023 02:00 ET (07:00 GMT)