UK-based electrolyser manufacturer CPH2 has announced its intention to float on AIM—a specialised unit of the London Stock Exchange catering to smaller companies.

Unlike most electrolysers, which use membranes to separate hydrogen and oxygen, CPH2 manufactures a membrane-free electrolyser (MFE), which instead divides the water splitting process into two phases.

Membrane failure is often the cause for malfunctions in alkaline and proton-exchange-membrane electrolysers, meaning MFE technology can improve system reliability, according to its advocates. MFEs also do not use platinum group metals in their production, sheltering manufacturers from any supply crunches in the markets for those materials.

Both these factors combine to contribute to a lower anticipated levelised cost of hydrogen for the end-customer, according to CPH2. The technology also makes any subsequent liquefaction of hydrogen easier because the end-product is manufactured at a lower temperature, reducing cooling costs.

4GW – Firm’s targeted production capacity in 2030

The firm intends to raise approximately £50mn ($68mn) through the placing of shares on the exchange. The new capital will help the group achieve its goal of reaching a 4GW production capacity by 2030, according to CEO Jon Duffy.

“Our approach to electrolyser technology is based on challenging long-held market views… and the result is a lower-cost, simple, much more durable electrolyser to separate hydrogen and oxygen from water,” he says.

Meeting the 4GW target would be equivalent to a 10pc market share of the projected EU market of 40GW by 2030.

CPH2 says its existing blue-chip customer base and orderbook of 4MW for delivery in 2022 provide a good platform for enabling this targeted growth.

The company says—if admitted—it will be awarded the London Stock Exchange’s ‘Green Economy Mark’ for companies that derive 50pc or more of their annual revenues from low-carbon products and services.

“Following admission, the group intends to regularly disclose key non-financial performance indicators aligned to their approach to ESG and to the expectations of stakeholders and which will include metrics on carbon emissions, health and safety, diversity and community investment,” the firm says in its application statement.

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Author: Tom Young