Yahoo Finance Hydrogen company lines up £50m Aim float
A Doncaster-based maker of equipment to produce hydrogen will join the stock market to capitalise on booming demand for the clean-burning gas.
Clean Power Hydrogen Group (CPH2) said its electrolysers can produce hydrogen in a cheaper and more sustainable way by ditching the membranes typically used in the process.
It is expecting to join Aim, London’s junior market, next month to raise £50m. An announcement about its intention to float is expected today.
Founders Nigel Williamson and Joe Scott spent several years working on research and development before moving into commercial production over the latest two years.
The company sold its first unit in Northern Ireland last year and is aiming to hit 4 gigawatts of electrolyser production by 2030 as a global brand.
Hydrogen does not produce carbon emissions when burned and governments around the world are hoping it can help replace fossil fuels to tackle global warming, with billions pouring into the sector.
Jon Duffy, the chief executive, said: “Governments, large and small corporations – every target they put out has a hydrogen element to it.”
Increasing production will be a key challenge. Hydrogen needs to be split from other elements, either from water using electrolysis or from natural gas using heat.
Production from natural gas itself produces carbon emissions, however, so producing it using electrolysis with renewable energy is increasingly preferred.
Electrolysers normally use membranes to isolate hydrogen and oxygen during the process, but CPH2’s electrolysers use cryogenics to do this instead.
Mr Duffy said this made Clean Power Hydrogen’s product cheaper and also cut down on waste and water usage.
The process is also relatively straightforward, meaning it can licence the process as well as selling its electrolysers directly.
The funds raised on Aim will go towards upgrading the company’s facilities, building supply chains, research and development, patenting and other costs.
As well as its factory in Doncaster, it is likely to build a second factory in Northern Ireland.
The company has not disclosed a valuation. Cenkos is acting as sole broker and Nomad.
