Clean Power Hydrogen Operational Update (1865H)

TIDMCPH2

RNS Number : 1865H

Clean Power Hydrogen

22 November 2022

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.

22 November 2022

Clean Power Hydrogen Plc

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

Operational Update

CPH2, the UK-based green hydrogen technology and manufacturing company that has developed the IP-protected Membrane-Free Electrolyser ("MFE"), provides an update on the delivery and deployment of the first two MFE 220 units.

As previously announced, the Company has experienced delays caused by both ongoing global supply chain issues and the engineering and scale-up issues identified in the preliminary commissioning of its initial units. The Company continues to progress through its technology pathway for the design of its next generation MFE 220 unit to address these issues, with optimised units still expected to be available for delivery by late 2023.

In recent weeks, the Company has identified a further potential issue with the design and operation of the cryostat unit within the existing MFE 30 test unit with investigations currently ongoing. If confirmed, this issue will be addressed in the next generation MFE 220 units as part of the ongoing upgrade and design adjustments. However, a retrofit solution will require to be implemented for the initial two units that will result in a delay to the delivery of these to customers, which had been scheduled for October 2022.

As a result of these further delays, Octopus Hydrogen has informed the Company that it has cancelled its order with the Company, as it intends to use an alternative electrolyser solution at its first site, which is expected to go live in the coming weeks. As a result, the Company has reimbursed the deposit paid by Octopus Hydrogen.

Jon Duffy, Chief Executive Officer of CPH2, commented:

" We are disappointed by the ongoing delays to the commissioning of our first MFE 220 unit. However, we understand the issues and are working through them thoroughly and sustainably. Our number one priority is ensuring that we are able to deploy our first MFE 220 units in the field and to have these operating responsibly and efficiently. I would like to thank Octopus Hydrogen for their patience, support and understanding.

The business continues to gain commercial traction and interest in our technology and our pipeline of potential orders continues to grow. The Company remains on course to deliver our aims, targeting 4GW production capacity by 2030.

We continue to develop the technical team in place at the Company, with the business maintaining a strong balance sheet it is well funded to deliver on our business plan and to continue to address the significant market opportunity."

For more information, please contact:

 
 Clean Power Hydrogen Plc                  via Camarco 
 Jon Duffy, Chief Executive 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 
 Fergus Young 
 

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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November 22, 2022 02:00 ET (07:00 GMT)