CPH2 has inked its first license agreement with GHFG for the 20-year construction of 2 gigawatts (“GW”) of MFE electrolysers.
Under the terms of the license agreement, GHFB will produce CPH2 MFE electrolysers in a new plant in Ireland beginning in 2023. Under the terms of this arrangement, each electrolyser manufactured by GHFG will be installed alongside and powered by solar energy projects owned and maintained by Alternus.
Under the terms of the arrangement, CPH2 will get an upfront licence cost, a technology charge per unit, and then service and maintenance licences throughout the life of the unit. The upfront license fee is anticipated to be received in full by the end of the current fiscal year and will be recognized as revenue during the contract’s duration.
The licensing of CPH2’s proprietary technology presents the company with the opportunity to dramatically boost revenue without incurring extra capital expenses. Given the business model’s potential low cost and short lead time, the Directors feel it is a great opportunity to build market share and increase worldwide market penetration by employing the high margin, low capex licensing strategy to support additional R&D.
CPH2, situated in Doncaster, aims to produce 4GW per year by 2030, with 1GW produced at its own facilities and the remainder manufactured under license by other companies, including GHFG. Through the agreement, GHFG has access to CPH2’s breakthrough MFE technology while retaining autonomy over its production and delivery timelines.
Jon Duffy, Chief Executive Officer of CPH2, commented:
“We are pleased to have signed our first licensing agreement with GHFG. CPH2’s vision and values are closely aligned with our new partners, Alternus and Soleirtricity, and I am pleased to be able to share our innovative technology with them through our licence model. A core component of our business model is licensing out production to other companies, whilst also producing a certain number of units ourselves. 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.”
Eric Whelan, Chief Executive Officer of GHFG Ltd, , commented:
“Soleirtricity has a long-standing successful relationship with Alternus which has focused on the solar industry to date. Through this joint venture, GHFG will be responsible for the production of electrolysers to match the deployment of new Alternus solar projects where the addition of green hydrogen generation makes sense. It will also provide more direct control over the supply chain. Green hydrogen installations will allow Alternus to diversify into additional revenue streams from its growing market penetration in key markets across Europe and beyond. It will also best exploit entry to another large and critical market in clean energy. Energy produced from the Alternus solar assets will be optimised to produce 100% green hydrogen, which is a critical component in the decarbonisation of transport and heavy industry. We look forward to broadening our contribution to a net zero future with all parties involved in this exciting new partnership”.
