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(Sharecast News) - Clean Power Hydrogen said on Friday that it had suspended work on factory acceptance testing for its MFE220 1MW electrolyser after concluding that damage from a recent test-site incident was too severe to repair and that the unit would require substantial redesign.
The AIM-traded green hydrogen technology company said the incident occurred during a standard shutdown procedure in the third and final stage of factory acceptance testing, causing damage to the electrolyser and prompting the suspension of all operations under its health, safety and environmental protection processes.
CPH2 said a subsequent inspection and review of available data showed the damage was significant and that the system could not be repaired to allow testing to continue.
Its insurers were informed immediately and had visited the test site to begin their assessment, while the exact cause of the incident remained under investigation.
The company said its chief technical officer and chief operations director had advised the board that the MFE220 unit would require substantial redesign to ensure the mixed gas system could be operated safely in all conditions.
While the board said it retained confidence in the potential of the technology, it concluded that CPH2 did not currently have the financial, engineering or technical resources needed to undertake such a programme.
As a result, the board decided not to recommence FAT3 activities for the MFE220 electrolyser and would instead pursue alternative, non-manufacturing commercial strategies.
CPH2 said it believed its intellectual property, including six patent families across 12 countries, licensees, copyrights, designs, schematics, commercial relationships and more than a decade of technical knowhow, had significant commercial value.
It said it was now evaluating options to maximise value from those assets, including potential commercial, licensing and strategic alternatives.
The company added that working capital remained constrained and that there was material uncertainty over continuing operations while talks with capital providers continued.
Trading in CPH2's shares on AIM remained suspended pending further updates.
Reporting by Josh White for Sharecast.com.
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