Following a successful year of building partnerships with new and existing customers, Proton Motor Fuel Cell has ambitious plans to produce fuel cell systems on a mass level. Formed in 1998, the Bavarian pure-play hydrogen firm develops, produces and distributes systems based on polymer electrolyte membrane technology for the industrial, automotive, maritime, stationary and rail sectors.

Proton Motor, which claims to offer the world's most powerful hydrogen fuel cell made of graphite bipolar plates, up to 71KW, has pioneered technology in several sectors in Germany.

“Demand for our hydrogen fuel cell technology has been increasing exponentially” Nahab, Proton Motor

It introduced the world’s first fuel cell system for a ferry in 2009. The first fuel cell forklift truck at Munich Airport in 2001. And, together with Skoda Electric, the first ‘triple hybrid’ bus deploying batteries, super-capacitors and fuel-cells in 2009.

The share price of its UK-listed parent company Proton Motor Power Systems has increased by c.138pc in the past 12 months—in line with a trend seen among leading pure-play hydrogen companies as investors bet on the future green hydrogen economy.

Faiz Nahab, chief executive officer of Proton Motor Fuel Cell, tells Hydrogen Economist the firm, which is based in Puchheim near Munich, has a “clearly defined development roadmap” for this decade. This will involve transitioning from medium-volume production to series production, which it will achieve through “cooperation with licensees and through joint ventures”.

In 2020, the firm expanded its shipbuilder client base by winning a contract from KST, a European shipbuilder, and a follow-on order from Italian shipbuilding group Fincantieri, one of the world’s largest. It was also appointed a preferred supplier of fuel cell systems by German electric power supply system builder Frerk Aggregatebau.

Proton Motor also received its first order from Shell New Energies, for a fuel cell hybrid system intended to power portable hydrogen refuelling units. This unit will be used in a joint-venture pilot project, between Shell and a major European truck manufacturer, that involves refuelling hydrogen trucks on a test track.

Production growth

Proton Motor’s medium-term production target is 5,000 fuel cell stacks in the 36KW electrical output class. “In the long term, we are aiming for higher quantities,” says Nahab. “Demand for our hydrogen fuel cell technology has been increasing exponentially. It has been steadily growing to high level in recent years.”

Unlike some of the larger companies involved in the hydrogen sector, Proton Motor is not looking to acquire other pure-play hydrogen firms. Instead, it wants to partner with pure-play companies or larger strategic partners.

The global hydrogen fuel cell vehicle market is expected to grow from $15.6bn in 2020 to $26.5bn by the end of 2025, a compound annual growth rate of 11.23pc, according to a hydrogen fuel cell vehicle report by market analysis firm Market Research Future.

5,000 – Medium-term 36KW fuel cell stack production target

Germany is phasing out nuclear power completely and has been progressively converting its energy supply away from and fossil fuels towards renewable energies. Almost 43pc of its electricity now comes from wind, sun, water or biomass. In the future, hydrogen is expected to complement these renewables.

“The technology of the future is gaining momentum,” says Nahab. “Politics is setting the course by developing—and in some cases already adopting—regional, national and European hydrogen strategies to give hydrogen a key role as an energy carrier for achieving climate goal.

“Over the next few years, we will see where optimisation can be achieved so that mass production does not take place on other continents [than Europe].”

The hydrogen issue is becoming socially acceptable through political bodies, although Nahab admits that Germany—despite its technological leadership—“has some catching up to do compared to other countries”.

138pc – Proton Motor share price increase during last 12 months

The German federal government’s Covid-19 stimulus package mentioned specific points on the development of a hydrogen economy in Germany, and its national hydrogen strategy was officially adopted on 10 June by the Bundestag.

Nahab believes Proton Motors, a German brand with a UK-listed holding company, is “well-positioned in light of Brexit”.

He is also confident the firm will benefit from even stronger integration into the European internal market, and from tenders from EU funding programmes following the launch of the European Green Deal in July 2020.

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Author: Stephanie Baxter