UK hydrogen technology company Clean Power Hydrogen (CPH2) has signed a 20-year deal for the production of 2GW of its patented membrane-free electrolyser under licence by renewables joint venture GHFG at a new facility in Ireland.

Production is expected to start in 2023 under the deal, which is CPH2’s first licence agreement with another manufacturer.

“A core component of our business model is licensing out production to other companies, while also producing a certain number of units ourselves,” says Jon Duffy, CEO of CPH2. “By 2030, our goal is to produce approximately 1GW[/yr] at CPH2 facilities and 3GW[/yr] under licence.”

2GW – Capacity to be produced under licence agreement

Licensing of its technology to other manufacturers offers CPH2 the potential to grow its revenue in the short term without the need for additional capex to scale up its own production capacity, the company says.

Under the agreement, the Doncaster-based company will receive an upfront licence fee, and thereafter a technology fee per unit, followed by service and maintenance licences during the unit’s life. The upfront licence fee is expected to be received in full by the end of the financial year.

GHFG is a joint venture between renewable power producer Alternus Energy Group and Eric Whelan, CEO of Irish developer Soleirtricity. Each electrolyser produced by GHFG under the agreement will be coupled with solar projects owned and operated by Alternus.

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Author: Stuart Penson