Siemens on the scene: a potential scale-up partner for CPH2
Clean Power Hydrogen (AIM: CPH2) has signed a non-binding agreement with Siemens to explore upscaling production and accelerating technology advances. If formalised, Siemens would support product, process and technology development, plus customer introductions and go-to-market strategies.
Why it matters: Siemens is a heavyweight in industrialisation. Even a collaboration at the engineering and commercialisation level can shorten timelines, de-risk manufacturing scale-up and open doors to large customers. It is non-binding for now, so investors should treat it as a strong signal rather than a signed-and-sealed contract.
Commercial traction: four firm orders and a broader pipeline
CPH2 confirms firm orders for four 1MW MFE220 units and says the sales pipeline is strengthening, with a noticeable uptick in the UK, India and the Middle East. Some of these new opportunities are now supported by Memoranda of Understanding (MoUs) or Letters of Intent (LoIs).
Beyond that, the company has entered into non-binding collaboration arrangements with:
- Zero Carbon Consultants to develop supply, installation, commissioning and maintenance for up to 20MW of capacity at its Community Energy Projects wind farm.
- Amman Renewable Energy Company (AREC) as CPH2’s representative in Jordan, Syria, Iraq and Saudi Arabia for potential projects up to 20MW.
- Allround Agritech Solutions Private Limited in India, which is exploring agricultural production solutions potentially requiring up to 20MW.
There are also “additional and credible” negotiations under way in Germany, Austria and Ireland, adding to existing orders in the island of Ireland and New Zealand. Order values, delivery schedules and pricing are not disclosed.
Factory Acceptance Test progress: a clear path to first revenues
The first 1MW MFE220 unit has left the factory for the third and final stage of its Factory Acceptance Test (FAT) at CPH2’s dedicated test-site. FAT is a formal testing process to prove the system performs to specification before shipment and installation.
Level two FAT has already been achieved and signed off by Lagan MEICA Limited (principal contractor to Northern Ireland Water) and ARUP, representing Northern Ireland Water. The final FAT is expected to complete in April 2026, witnessed and signed off by ARUP and Lagan.
Why that’s important: passing FAT should de-risk the subsequent Site Acceptance Test (SAT) at the customer’s location in Q3 2026. SAT is the repeated, on-site test that, when passed, typically triggers revenue recognition. CPH2 flags that this will trigger its first commercial revenues. Until SAT is achieved, cash inflow timing remains exposed to project execution risk.
Performance data: 99.999% hydrogen and 99.7% oxygen
CPH2’s scaled demonstrator, the MFE110, has independently verified hydrogen purity at 99.999 vol%, above fuel cell grade, and oxygen purity at 99.7%, above medical grade. Traditional electrolysers often vent lower-purity oxygen; CPH2’s membrane-free approach seeks to monetise that oxygen as a co-product.
Why it matters: an additional oxygen revenue stream can reduce the levelised cost of hydrogen (LCOH). The company says this aligns with the EU Commission’s published methodology. CPH2 also plans to pursue ultra-high-purity (UHP) oxygen, which, in the right applications, could further improve project economics. The exact price uplift or margin impact is not disclosed, but the direction of travel is favourable for decentralised use cases.
Roadmap: Mark II and a 5MW product targeting 48 kWh/kg H2
Looking ahead, CPH2 expects the second generation of its 1MW unit, the MFE220 Mark II, to complete Front-End Engineering Design (FEED) by December 2026, with final design in 2027 and first build in 2028.
Separately, the company plans to finalise concept design for a 5MW unit in December 2026, complete FEED in 2027, and finalise design in 2028. CPH2 is targeting a market-leading efficiency of 48 kWh per kilogram of hydrogen for this 5MW platform. Targets are not guarantees, but they give a useful benchmark for where the technology is headed.
Key numbers and milestones at a glance
| Firm orders | Four MFE220 units (1MW each) |
| FAT status | Level two achieved and signed off by Lagan and ARUP |
| Final FAT timing | Expected April 2026 |
| First revenues trigger | Post-SAT at customer site in Q3 2026 |
| Hydrogen purity (MFE110) | 99.999 vol% (above fuel cell grade) |
| Oxygen purity (MFE110) | 99.7% (above medical grade) |
| Potential collaborations | Zero Carbon Consultants, AREC, Allround Agritech (each up to 20MW) |
| Mark II (1MW) FEED | By December 2026; final design 2027; first build 2028 |
| 5MW unit | Concept design Dec 2026; FEED 2027; final design 2028; 48 kWh/kg H2 target |
| Geographies in pipeline | UK, India, Middle East, Germany, Austria, Ireland; orders in island of Ireland and New Zealand |
What this means for the investment case
Positives I like
- Independent purity validation strengthens technical credibility and differentiates the membrane-free approach, especially with monetisable oxygen.
- Clear commercial pathway: FAT almost done, SAT lined up for Q3 2026, and a defined roadmap to Mark II and a 5MW platform.
- Expanding pipeline with geographic breadth and sector variety, consistent with decentralised markets like wastewater, curtailed wind capture, data centres, medical and life sciences, and heavy-duty mobility.
- Siemens engagement, if formalised, could accelerate industrialisation and open customer doors that are hard to knock down alone.
Risks to keep in mind
- Non-binding nature of the Siemens agreement and several collaborations. Conversion risk remains until contracts are signed.
- Execution timing: any slippage in final FAT, SAT or commissioning would push revenue recognition to the right.
- Scaling risk: moving from demonstrators and first-of-a-kind units to series production is a complex step-up.
- Financial detail is not disclosed in this update. We do not have visibility on cash runway, margins or unit economics beyond qualitative statements.
CEO colour: the “negative cost hydrogen” ambition
CEO Jon Duffy talks about a “realistic prospect of negative cost hydrogen for the right application.” That is an ambition, not guidance, but it underlines the strategy: where oxygen and other co-products have tangible value, the economics can flip from merely viable to compelling. The company’s focus on decentralised, application-specific markets fits this thesis.
My take: a constructive step toward commercial reality
This is a tidy operational update. Passing level two FAT with sign-off from Lagan and ARUP is meaningful, and the April target for final FAT gives a near-term catalyst. The SAT in Q3 2026 is the key revenue trigger to watch. The Siemens tie-up, though non-binding, is an encouraging signal that industrial partners see potential in CPH2’s membrane-free pathway.
The technology angle – especially monetising high-purity oxygen – could be a genuine competitive lever for decentralised projects. What I still want to see are firmed-up contracts from the pipeline, conversion of MoUs to orders, and more disclosure on commercial terms. If the April FAT lands on time and SAT follows in Q3, the transition from R&D-heavy narrative to revenue-backed execution should sharpen considerably.
