REG - Clean Power Hydrogen - Agreement with KCA Deutag Group

Clean Power HydrogenAnnouncement

05/09/2022 07:00

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RNS Number : 1903Y  Clean Power Hydrogen  05 September 2022

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05 September 2022

 

Clean Power Hydrogen Plc

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

Agreement with KCA Deutag Group

CPH2, the UK-based green hydrogen technology and manufacturing company that
has developed the IP-protected Membrane-Free Electrolyser ("MFE") for the
production of hydrogen, is pleased to announce that it has entered into a
Technology Cooperation Agreement (the "Agreement") with Bentec GmbH, an
operating company entity of Kenera Energy Solutions ("Kenera").

Kenera is a newly formed business unit within leading drilling, engineering
and technology company KCA Deutag Group. Kenera has been formed as the
platform from which the KCA Deutag Group shall grow its offering within
hydrocarbon and energy transition markets and is a significant investor in
CPH2.

Highlights:

•              Pursuant to the terms of the Agreement, Kenera
will manufacture up to 30 MFE220 units for CPH2 at its manufacturing facility
in Germany.

•              In addition, CPH2 has granted Kenera a
non-exclusive license to sell and manufacture CPH2 products in Germany,
Scotland, Azerbaijan, Denmark and Norway up to a maximum of 150 MFE units per
annum.

•              CPH2 has also granted Kenera an exclusive
license to sell and manufacture CPH2 products across the Middle East up to a
maximum level of 2GW (including Oman, Saudi Arabia, United Arab Emirates,
Qatar, Kuwait and Iraq).

The Agreement brings together CPH2's innovative MFE technology, which uses
cryogenics to separate oxygen from hydrogen, and Kenera's international client
base and industry-leading manufacturing capabilities.

The manufacturing arrangements set out in the Agreement will allow an
acceleration of the roll out of the Company's technology as the market for
hydrogen grows rapidly.

The licensing arrangements, which will be effective for a period of ten years
following the completion of the manufacture of an initial 30 MFE units, are a
validation of the Company's intellectual property strategy which allows CPH2
to offer proprietary technology to manufacturing partners and resulting in a
low-cost business model designed to allow efficient market penetration.

The conclusion of the negotiations with Kenera is the culmination of multiple
workstreams that commenced in advance of the Company's successful IPO in
February 2022. KCA Deutag chose to invest in the Company at IPO and the
collaboration between parties since this point has positioned both parties to
take advantage of the rapidly growing hydrogen market, which is forecast to
require investment of up to €10 trillion globally by 2050.

The detailed terms of the Agreement provide for ongoing collaboration and
support between CPH2 and Kenera, including provision of training and
additional resourcing where required, as well as cost and profit-sharing
arrangements, backed up by minimum sales targets in exclusive territories.

Jon Duffy, CEO of CPH2 said:

"We are delighted to enter into this agreement with Kenera, whose parent
company, KCA Deutag, is  not only an investor in CPH2, but is also one of the
leading energy sector manufacturing businesses in the world, adding valuable
and immediate manufacturing capacity. I am particularly pleased to have
additionally signed two sales licensing sub-agreements, which are a capital
efficient production method for CPH2, and should will enable a much faster
scale up and market penetration of our innovative and disruptive hydrogen
electrolyser technology. Interest in this technology continues to grow and our
pipeline of opportunities is constantly developing."

Ally Hogg, Head of Commercial for Kenera, commented:

"This collaboration follows our investment into this exciting and ambitious
high growth hydrogen business. The relationship with CPH2 adds to our clean
energy portfolio and we look forward to actively collaborating with their team
as we expand our business in the energy transition space and create value for
our stakeholders by delivering our innovative technological solutions,
manufacturing and after-sales expertise."

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) 20 3 757 4980
 Billy Clegg
 Owen Roberts
 Fergus Young

 

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

Notes to editors

About 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. 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.

About Kenera

Kenera is a business unit within leading drilling, engineering and technology
company KCA Deutag. It expands the group's offering in hydrocarbon and energy
transition markets and consolidates the skills, competencies and experience of
the existing KCA Deutag group with those of Bentec - its land rig and oilfield
equipment manufacturer, and RDS - its UK-based engineering and design
specialist. Kenera has three dedicated segments covering innovative services,
technology & engineering and manufacturing.

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