REG - Clean Power Hydrogen - Operational Update

Clean Power HydrogenAnnouncement

24/08/2022 08:15

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RNS Number : 0544X  Clean Power Hydrogen  24 August 2022

 

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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.

 

 

 24 August 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
operational update on the commissioning process and delivery of its initial
MFE220 units. As previously announced, CPH2's early-stage commissioning
highlighted certain engineering and scale up issues, which led to delays in
the delivery of these units whilst design modifications were completed and
implemented. The impact of these changes has been further exacerbated by
delays in the global supply chain in physical goods, as many other businesses
have experienced in the current economic climate.

 

CPH2 is continuing to work to remedy these issues and to finalise the revised
design and engineering processes. While the Company still expects to deliver
the first two contracted units to its customers before the end of the year,
the performance of these units will be subject to further optimisation as the
revised design and engineering processes are finalised. Accordingly, sales
income from these units will now be realised in 2023 alongside the other
contracted units.

 

CPH2 recognises the importance of delivering its first MFE220 units as working
'in the field' and is deploying significant time and resources to achieve
this. Whilst the Group's revenues in FY2022 will be lower than originally
expected as a result of these delays, the impact of this reduction is more
than off-set at a cash level by the recently signed GHFG Ltd licensing deal,
with the Company's cash position expected to be ahead of forecast, helped by
tight budgetary control, reduced operating expenses and license royalty
income.

The Company is encouraged by the strong pipeline of incoming demand for it's
products, both via direct sale and licensing deals, with additional contracts
and orders expected to be finalised once the first MFE220 unit has completed
it's Factory Acceptance Testing ("FAT") and is in operation at the customer's
site. The Group's immediate focus is on delivering these first units and
finalising a revised design and engineering pathway to address all scale-up
issues identified and to optimise the performance of the MFE220 units.

 

The Company is in the final stages of agreeing the contractual arrangements,
that were highlighted in its admission document, with KCA Deutag and expects
to make an announcement shortly.

 

Jon Duffy, Chief Executive Officer of CPH2, commented:

 

"While the engineering and scale up issues brought about delays in the
commissioning of the MFE220 units have been frustrating, we are confident that
we will still deliver these units to our customers in an acceptable time
frame, allowing testing and commissioning on site by the end of the year.
Financially we will realise the income from these units in 2023, however we
remain well funded and confident on increasing income further as we deliver
working units to our customers."

 

 

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
 Lily Pettifar

 

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