Clean Power Hydrogen on Tuesday said that it has signed its first license agreement with GHFG Ltd for the construction of 2 gigawatts of MFE electrolysers over a period of up to 20 years.

CPH2 is a green hydrogen technology and manufacturing company based in Doncaster, England. It has developed a proprietary membrane-free electrolyser.

It began trading on London’s AIM market back in February of this year, at a price of 45 pence per share. Shares are currently 11% behind the IPO price; trading 8.1% higher at 40.00 pence each in London on Tuesday afternoon.

GHFG is a joint venture between renewable power producer Alternus Energy Group PLC and Eric Whelan, the chief executive officer of Dublin-based developer Soleirtricity Ltd.

Under the agreement, GHFG will produce the CPH2 MFE electrolysers at a new facility in Ireland. It plans to start production in 2023. Each electroyser produced by GHFG will be installed alongside and powered from solar energy projects owned and operated by Alternus.

CPH2 will receive an upfront license fee and thereafter a technology fee per unit and service and maintenance licences during the unit’s life. The upfront fee is expected to be received in full by the end of CPH2’s current financial year and to be recognised as revenue over the life of the contract.

‘The licensing of the CPH2 proprietary technology offers the company the potential to significantly increase revenue in the short term without the need for additional capital expenditure,’ the company added.

CPH2 Chief Executive Officer Jon Duffy said: ‘By 2030, our goal is to produce approximately 1GW at CPH2 facilities and 3GW under licence. Our licensing model will help facilitate our growth strategy and accelerate market penetration to scale the business globally by providing a long-term revenue stream for CPH2, without the need for major upfront capex.’

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