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37 min ago 2 min read
Clean Power Hydrogen (CPH2) is in talks to hand over manufacturing of its electrolyser to Irish developer Hidrigin after its flagship membrane-less system was damaged beyond repair in testing.
Under a binding term sheet, Hidrigin would become CPH2’s exclusive manufacturing partner in the UK, Ireland, the US, Canada, and Mexico, and production of the systems would be carried out by agricultural machinery maker Jones Engineering Manufacturing.
If completed, the agreement would give Hidrigin exclusive manufacturing rights in territories that CPH2 had previously earmarked for licensed production with .
It comes as CPH2 pivots towards a licensing business model after its inaugural 1MW was severely damaged after a ignited during factory acceptance testing.
The companies have agreed on a nine-month exclusivity period to negotiate the partnership, which would also see any improvements to CPH2’s membrane-less electrolyser design jointly owned.
The term sheet has a long stop date of 31 July.
Hidrigin, registered as Lisheen H2 Energy Park, has already signed a license agreement to manufacture up to 2GW of CPH2’s systems in Ireland, integrating into its own solar and wind projects.
CEO of the Irish project developer, Eric Whelan, said the firm “acknowledges” the testing failure but continues to believe in the potential of the electrolyser technology.
As part of the new term sheet, Hidrigin will also allow CPH2 to keep £750,000 ($988,410) it had paid for a 1MW electrolyser unit, by replacing the original contract with a convertible loan.
It will carry 10% annual interest and is secured against CPH2’s assets. It can be converted into shares at a 46% discount to the price of future fundraising, subject to a conversion price cap of £0.037 ($0.049) and a floor of £0.01 ($0.013).
The deal is conditional on CPH2 raising at least £3m ($3.95m) in new equity, alongside final legal agreements and other conditions.
On 22 June, the company said it was in talks with investors and brokers to secure more capital, with its cash balance set to be used by the middle of next month.
