HoT agreed to supply HY5 ammonia cracker

H-Power enters into Heads of Terms (the “Agreement”) with Protium Green Solutions Limited ("Protium") for the supply of a HY5 ammonia cracker

Agreement establishes H-Power's HY5 product revenue route, one of the Company's core commercial routes to growth and demonstrates the ability to produce cost competitive hydrogen without the need for government subsidy.

Builds on an established commercial relationship with Protium, which has already committed to purchase 5,000kg of hydrogen produced by H-Power

The HY5 will give Protium access to H-Power's proprietary ammonia-cracking reactor technology, designed to produce up to 500kg of fuel-cell-grade hydrogen per day at or close to the point of demand

Initial two-year contract is expected to commence in the second half of 2027, subject to planning and permitting requirements and execution of a definitive agreement

Heads of Terms provide a framework for potential further HY5 supply to other Protium sites, subject to further commercial agreement

H-Power plc (AIM: HPOW), a hydrogen products and services company using ammonia to produce hydrogen and convert hydrogen into clean off-grid power, announces that it has entered into Heads of Terms with Protium for the supply of a HY5 ammonia cracker.

The Agreement establishes H-Power's HY5 product revenue route, one of the core commercial routes through which the Company expects to scale revenue. It builds on revenue already being generated through LC30 product sales and hydrogen sales.

The initial HY5 deployment is expected to commence in the second half of 2027 for a period of two years. Deployment remains subject to the receipt of the necessary planning and permitting approvals and execution of a definitive agreement.

Under the proposed agreement, H-Power will supply the HY5 and provide installation and commissioning services, training for Protium personnel and ongoing engineering support. The unit will be operated by Protium.

Building on an established commercial relationship

The Agreement extends the existing commercial relationship between H-Power and Protium.

In June 2026, Protium contracted to purchase 5,000kg of fuel-cell-grade green hydrogen produced from cracked ammonia at H-Power's Dunsfold facility. The companies also established a virtual hydrogen depot at Dunsfold, enabling Protium to collect H-Power-produced hydrogen for distribution through its own network.

The Agreement develops that relationship from the purchase and distribution of hydrogen produced by H-Power to the deployment of H-Power's HY5 product at or close to the point of hydrogen demand.

It also demonstrates the progression of H-Power's commercial model: from selling hydrogen produced using its ammonia-cracking technology to supplying the HY5 product itself.

HY5 supporting Protium's hydrogen supply model

The HY5 will give Protium access to H-Power's proprietary ammonia-cracking reactor technology through a customer-sited product designed to produce up to 500kg of fuel-cell-grade hydrogen per day.

By converting ammonia into hydrogen at or close to the point of demand, the HY5 is designed to reduce the cost and complexity associated with transporting and storing hydrogen over long distances, giving Protium a more flexible route to supplying its customers.

The Heads of Terms also establish a framework for the companies to expand their HY5 relationship beyond the initial unit to other Protium sites subject to demand, further commercial agreements and relevant approvals.

John Wilson, CEO of H-Power plc, commented:

"This agreement is another important milestone in the reset of H-Power from a technology-led business into a commercially focused products company.

"We now have LC30 product sales and hydrogen sales underway, and this agreement establishes the HY5 product revenue route we have set out as another core part of our commercial model.

Protium is already a commercial customer of H-Power, having committed to purchase 5,000kg of hydrogen produced using our ammonia-cracking technology. The next step in that relationship is to supply the HY5, giving Protium access to our proprietary reactor technology so that hydrogen can be produced closer to where its customers need it.

This is exactly what the reset of H-Power was designed to achieve: turning our technology into defined products, contracted customer demand and repeatable revenue. The Heads of Terms also provide a framework to develop further HY5 contracts with Protium as demand grows."

Christopher Jackson, CEO of Protium, commented:

"As a company Protium has always been at the forefront of pioneering technology deployments in the UK hydrogen sector, and today’s announcement further underscores that market leading reputation. We are delighted to share this announcement on how Protium is continuing to develop our partnership with H-Power, and to re-affirm our strong interest in the role that distributed ammonia cracking can play as an additional source of cost competitive, unsubsidised, green hydrogen supply for Protium’s customers.”