CPH2 signs agreement with KCA Deutag Group

Monday 05 September 2022

CPH2, the UK-based green hydrogen technology and manufacturing company that has developed the IP-protected Membrane-Free Electrolyser ("MFE") for the production of hydrogen, is pleased to announce that it has entered into a Technology Cooperation Agreement (the "Agreement") with Bentec GmbH, an operating company entity of Kenera Energy Solutions ("Kenera").

Kenera is a newly formed business unit within leading drilling, engineering and technology company KCA Deutag Group. Kenera has been formed as the platform from which the KCA Deutag Group shall grow its offering within hydrocarbon and energy transition markets and is a significant investor in CPH2.


    •  Pursuant to the terms of the Agreement, Kenera will manufacture up to 30 MFE220 units for CPH2 at its manufacturing facility in Germany.

    •  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 annum.

    •  CPH2 has also granted Kenera an exclusive license to sell and manufacture CPH2 products across the Middle East up to a maximum level of 2GW (including Oman, Saudi Arabia, United Arab Emirates, Qatar, Kuwait and Iraq).

The Agreement brings together CPH2's innovative MFE technology, which uses cryogenics to separate oxygen from hydrogen, and Kenera's international client base and industry-leading manufacturing capabilities.

The manufacturing arrangements set out in the Agreement will allow an acceleration of the roll out of the Company's technology as the market for hydrogen grows rapidly.

The licensing arrangements, which will be effective for a period of ten years following the completion of the manufacture of an initial 30 MFE units, are a validation of the Company's intellectual property strategy which allows CPH2 to offer proprietary technology to manufacturing partners and resulting in a low-cost business model designed to allow efficient market penetration.

The conclusion of the negotiations with Kenera is the culmination of multiple workstreams that commenced in advance of the Company's successful IPO in February 2022. KCA Deutag chose to invest in the Company at IPO and the collaboration between parties since this point has positioned both parties to take advantage of the rapidly growing hydrogen market, which is forecast to require investment of up to €10 trillion globally by 2050.

The detailed terms of the Agreement provide for ongoing collaboration and support between CPH2 and Kenera, including provision of training and additional resourcing where required, as well as cost and profit-sharing arrangements, backed up by minimum sales targets in exclusive territories.

Jon Duffy, CEO of CPH2 said:

"We are delighted to enter into this agreement with Kenera, whose parent company, KCA Deutag, is not only an investor in CPH2, but is also one of the leading energy sector manufacturing businesses in the world, adding valuable and immediate manufacturing capacity. 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."

Ally Hogg, Head of Commercial for Kenera, commented:

"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."


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