REG - Clean Power Hydrogen - Admission to AIM and First Day of Dealings

Clean Power HydrogenAnnouncement

16/02/2022 07:00

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RNS Number : 7861B  Clean Power Hydrogen  16 February 2022

16 February 2022

 

Clean Power Hydrogen Plc

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

 

Admission to Trading on AIM

and

First Day of Dealings

 

CPH2, the UK-based green hydrogen technology and manufacturing group that has
developed the IP-protected Membrane-Free Electrolyser ("MFE"), is pleased to
announce the admission of its entire issued ordinary share capital to trading
on AIM ("AIM"), a market operated by the London Stock Exchange plc
("Admission").

 

CPH2 has been admitted to AIM and the commencement of trading of the Group's
Ordinary Shares will become effective at 8:00a.m. under the ticker "CPH2".
Admission follows an over-subscribed Placing by Cenkos Securities plc
("Cenkos") for a total of 67,717,818 Ordinary Shares at 45p per Ordinary Share
(the "Placing Price"), raising gross proceeds of £30.5m (before expenses)
(the "Placing").

 

Cenkos is acting as Nominated Adviser and sole broker in relation to the
Admission.

 

Placing Statistics:

 

 Placing Price per Ordinary Share                                      45 pence
 Gross proceeds of the Placing                                         £30,473,018
 Free float                                                            59.4%
 Gross proceeds of the Placing receivable by the Group                 £30,000,000
 Gross proceeds of the Placing receivable by the selling shareholders  £473,018
 Number of Ordinary Shares in issue immediately following Admission    265,419,967
 Market capitalisation of the Group at the Placing Price               £119.4 million

 

 

Jon Duffy, Chief Executive Officer of CPH2, said:

 

"Today's listing and over-subscribed placing, delivered in difficult stock
market conditions, is an important milestone for CPH2 and will assist the
rapid growth of the Group. The funds raised will further strengthen the
Group's financial position and will enable CPH2 to build out our Doncaster
manufacturing operation. 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,
targeting 4GW production capacity by 2030, an opportunity further advanced by
the move onto the public markets.

 

"The Group is now in a position to continue significant investment into its
research and development capacity and enhance our intellectual property
position whilst establishing a stock of completed units to deliver the
substantial and continually growing opportunity pipeline.

 

"I am delighted we have been awarded the London Stock Exchange's Green Economy
Mark at Admission, which recognises companies that derive 50% or more of their
total annual revenues from products and services that contribute to the global
green economy.

 

"I am grateful for all the hard work of our team, and I would like to thank
our new and existing shareholders for their support. We are confident in our
ability deliver on the opportunities ahead and I look forward to providing
updates on our progress as our business develops."

 

 

For more information, please contact:

 

 Clean Power Hydrogen Plc                    via Camarco
 Jon Duffy, Chief Executive Officer

 Cenkos Securities plc - NOMAD & Broker
 Neil McDonald                               +44 (0)131 220 9771
 Peter Lynch                                 +44 (0)131 220 9772
 Adam Rae                                    +44 (0)131 220 9778

 Camarco PR                                  + 44(0) 203 757 4980
 Owen Roberts
 Monique Perks
 Billy Clegg

 

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.

 

In addition to a contracted orderbook of 4MW for delivery in 2022, the Group
has an established pipeline of new opportunities at varying stages of
development, including active discussions with current and quoted customers in
respect of potential orders in excess of 160MW.

 

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.

 

Key Strengths

 

·      Flexible route to market - In addition to the Group being a
developer and seller of the MFE technology through traditional product sales
channels, the intellectual property protection obtained by the Group enables
it to pursue international joint venture and licensing arrangements.
Resultingly, the Group has the potential to offer a low-cost business model
combined with the potential to scale in the short term.

 

·      Opportunity to penetrate a very fast-growing 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. This requires investment of up to c. €47bn
towards electrolysers producing 10 million tonnes/year of renewable hydrogen.
The Group aims to become a globally recognised and highly-profitable designer,
manufacturer and licensor of its MFE technology and is targeting 4GW
production capacity by 2030. Meeting this target would be equivalent to a 10
per cent. 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.

 

·      High-calibre customer base - The Group has an existing blue-chip
customer base and a contracted orderbook of 4MW of unit production for
delivery in 2022, providing an excellent platform for future growth. Beyond
this, the Group has an established pipeline of new opportunities at varying
stages of development, including active discussions with current and quoted
customers in respect of potential orders in excess of 160MW.

 

·      Acting as a disruptive fast follower - In a rapidly-developing
market place, the Directors believe CPH2 is well placed to benefit from the
favourable commercial and regulatory drivers as hydrogen becomes increasingly
central to the delivery of global 'net zero' commitments.

 

·      Lowering the cost - The Group's product design underpins its
ambition to offer end customers the lowest Levelised Cost of Hydrogen ("LCOH")
on the green hydrogen market and to help establish hydrogen as a viable source
of power in the future. When coupled with renewable electricity as a power
source, the CPH2 electrolyser is capable of producing cheap, green hydrogen
and medical grade oxygen.

 

 

CPH2's ISIN is GB00BP371R64 and its SEDOL is BP371R6.

 

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

 

 

Notes to Editors

 

Clean Power Hydrogen plc ("CPH2") is a rapidly-growing UK-based green hydrogen
technology and manufacturing group. The Group designs and manufactures
hydrogen production units and is focused on the commercial production of green
hydrogen in a simple, safe, and sustainable manner

 

CPH2 has advanced the development of hydrogen as a green energy by
demonstrating a new form of production. CPH2 has developed unique,
IP-protected Membrane-Free Electrolyser™ ("MFE") technology - an efficient,
cost-effective and reliable means of producing hydrogen - which is disrupting
the traditional electrolyser market and accelerating the progress towards a
zero-carbon future.

 

CPH2 is listed on the AIM market of the London Stock Exchange ("LSE") (AIM:
CPH2) and was awarded the Green Economy Mark by the LSE, which recognises
listed companies that derive more than 50% of their revenues from the green
economy.

 

Cenkos Securities plc, which is authorised and regulated by the Financial
Conduct Authority in the UK, is acting exclusively for the Group and no one
else in connection with Admission. Cenkos Securities plc will not regard any
other person as its client in relation to Admission and will not be
responsible to anyone other than the Group for providing the protections
afforded to its clients, nor for providing advice in relation to the contents
of this announcement or any transaction, arrangement or other matter referred
to herein.

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