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KCA Deutag unit to build hydrogen tech under new CPH2 licensing deal

© Shutterstock / Juergen PrieweHydrogen market.

Hydrogen technology firm CPH2 has signed a licensing agreement with a division of KCA Deutag, enabling the engineering group to build and sell electrolysers across Europe and the Middle East.

CPH2 agrees a licencing deal for its membrane-free electrolyer.

The deal validates the company’s approach to scaling up.

Further deals should accelerate as the appetite for affordable hydrogen solutions continues to grow.

Doncaster-based CPH2 has developed membrane-free electrolyser (MFE) technology, which uses cryogenic separation to deliver pure hydrogen and pure oxygen as separate gases.

Under the new agreements, KCA unit Bentec will have access to build and sell the company’s IP-protected MFE units across several European and Middle East markets.

Bentec is itself part of Kenera Energy Solutions, a new business within the KCA Deutag group which focuses on the company’s hydrocarbon and energy transition services.

Deals and licenses

Under the deal, Kenera will have license to manufacture up to 30 of the company’s MFE220 units for CPH2 at its manufacturing facility in Germany. Each 1-MW model is capable of producing around 450kg of hydrogen per day.

In addition, CPH2 has granted Kenera a non-exclusive license to sell and manufacture CPH2 products in Germany, Scotland, Azerbaijan, Denmark and Norway, up to a maximum of 150 MFE units per year.

Kenera has also secured an exclusive license to sell and manufacture CPH2 units across the Middle East, up to a maximum level of 2GW. Markets include Oman, Saudi Arabia, United Arab Emirates, Qatar, Kuwait and Iraq.

CPH2 said the deal would combine its technology with Kenera’s international client base and manufacturing sites, and will enable a faster rollout of the MFE technology as the market for hydrogen grows.

The licensing arrangements will be effective for ten years following the completion of the manufacture the initial 30 MFE units.

Kenera is already a significant investor in CPH2, having backed the company during its IPO.

CPH2 chief executive Jon Duffy said the deal would provide “valuable and immediate manufacturing capacity” for MFE technology.

Investment in the hydrogen business

“I am particularly pleased to have additionally signed two sales licensing sub-agreements, which are a capital efficient production method for CPH2, and will enable a much faster scale up and market penetration of our innovative and disruptive hydrogen electrolyser technology. Interest in this technology continues to grow and our pipeline of opportunities is constantly developing,” he added.

CPH2 said the deal was a “validation” of its IP-based strategy, which allows it to “offer proprietary technology to manufacturing partners and resulting in a low-cost business model” that also supports quick entry to new markets.

The agreement also provides for ongoing collaboration and support between the two companies, including training and additional resourcing where required, as well as cost and profit-sharing arrangements, backed up by minimum sales targets in exclusive territories.

Kenera head of commercial Ally Hogg added: “This collaboration follows our investment into this exciting and ambitious high growth hydrogen business. The relationship with CPH2 adds to our clean energy portfolio and we look forward to actively collaborating with their team as we expand our business in the energy transition space and create value for our stakeholders by delivering our innovative technological solutions, manufacturing and after-sales expertise.”

CPH2 recently announced the appointment of James Hobson as finance director, responsible for the scaling up of the companies manufacturing and licencing approach.

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