UK-based technology company Johnson Matthey has signed a strategic partnership agreement with US hydrogen and fuel-cell firm Plug Power to help meet growing demand for fuel cells and electrolysers. As part of this agreement, Johnson Matthey will supply Plug with membrane electrode assembly components, such as catalysts, membranes and catalyst-coated membranes (CCMs).

The firms will co-invest in a CCM factory in the US, which at an initial 5GW and scaling to 10GW will be the largest such facility in the world. The factory is expected to start operations from 2025.

Johnson Matthey and Plug aim to use incentives from Inflation Reduction Act in the US and RepowerEU in Europe to push for exponential growth. Plug targets revenue of $1.4bn this year, $5bn by 2026 and $20bn by 2030.

$20bn – Plug’s 2030 target revenue

“Plug is proud to expand our relationship with [Johnson Matthey], a highly respected and skilled supply partner with a proven track record,” says Plug CEO Andy Marsh.

“This partnership will help us strengthen our supply chain and underpin our ability to deliver on the growing demand for our fuel cells and electrolysers. With a partner like [Johnson Matthey], Plug is in a strong position to be the global leader of the green hydrogen economy.”

Johnson Matthey is expected to bring security of supply and recycling capabilities for critical minerals to the partnership. The firm has 2GW of manufacturing capacity, with plans to expand to 5GW by H1 2024 with the startup of its 3GW factory in the UK.

Plug recently disclosed it had exited a 2GW electrolyser factory partnership with Australia’s FFI due to unfavourable project economics.

Reviewing options

Other electrolyser firms are mulling the future of their technology partnerships.

UK-based ITM is reviewing strategic options for Motive Fuels, its joint venture with trading firm Vitol, including the sale of the business or discontinuing activities in an effort to save £28mn ($34.4mn) for rerouting to the company’s core electrolyser business. The firm has seen losses spiral, with an adjusted Ebitda of £54.1mn in the six months up to October last year. The majority of revenue from sale of its electrolysers to strategic investor Linde for installation at the Leuna chemicals complex has been deferred due to delays and a change in delivery model.

ITM has signed sales contracts for two 100MW electrolysers to Linde, to be installed at a site operated by utility RWE in Lingen, Germany. The two firms were pre-selected as technical providers for the project by RWE in 2021. The project is scheduled to bring its first electrolyser online in 2024 and its second in 2025, pending allocation of EU Important Projects of Common European Interest status.

Meanwhile, membrane-free electrolyser firm Clean Power Hydrogen (CPH2) has opted to strengthen its existing partnerships with New Zealand-based cryogenic systems firm Fabrum with a ten-year manufacturing agreement. CPH2 aims to leverage the agreement to roll out its technology in Australia and New Zealand, having already shipped its first MFE220 unit to Fabrum's facilities, where it will be fitted out with the remaining components and commissioned for use.

CPH2 had an order from Octopus Hydrogen for a 1MW project last year cancelled owing to delays in delivery and technology still in development.

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Author: Polly Martin