08
2026
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06
Clean Power Hydrogen Exits Manufacturing After 1MW Electrolyser Testing Failure
Author:
Fuel Cells Works
- Clean Power Hydrogen Plc has announced a significant operational setback following an incident during factory acceptance testing of its MFE220 1MW unit, which caused substantial damage rendering the electrolyser irreparable. The company has decided not to recommence testing and will instead focus on alternative, non-manufacturing commercial strategies, leveraging its intellectual property and existing assets. Working capital remains constrained, and trading in the company's shares is suspended pending further updates on ongoing discussions with capital providers.
Clean Power Hydrogen Plc (AIM: CPH2), the UK-based green hydrogen technology and manufacturing company, provides a further update following the announcement on 29 May 2026 regarding the incident at the Company's test site during the third and final stage of the factory acceptance testing ("FAT3") of its MFE220 1MW unit.
As previously announced, an incident occurred during a standard shutdown procedure which caused damage to the electrolyser and, in line with CPH2's health, safety and environmental protection processes, all operations were suspended at that point.
A subsequent inspection at the test site and review of all available data indicate that the damage to the unit is significant and that it will not be possible to repair the system to allow the testing process to continue. The Company's insurers were immediately informed at the time of the incident and have visited the test site to begin their assessment. The exact cause of the incident remains under investigation and that process is expected to continue.
Based on the preliminary review completed to date, the Company's Chief Technical Officer and Chief Operations Director have advised the Board that, in their opinion, the MFE220 unit will require substantial redesign to ensure that the mixed gas system can be operated safely in all conditions. Whilst the Board retains confidence in the potential of the technology, it has concluded that the Company does not currently have the financial, engineering or technical resources required to undertake such a programme at this time. Accordingly, the Board has decided not to recommence activities relating to FAT3 for the MFE220 electrolyser and instead will pursue alternative, non-manufacturing, commercial strategies.
The Board believes that the Company's existing intellectual property, including six patent families across twelve countries, licensees, copyrights, designs, schematics, commercial relationships and more than a decade of accumulated technical knowhow have significant commercial value. As such, the Company is now actively evaluating options to maximise the value from its intellectual property and related assets, including potential commercial, licensing and strategic alternatives, which will be in the best interests of shareholders and other stakeholders.
The Company's working capital remains constrained and there remains material uncertainty over continuing operations whilst discussions with capital providers remain ongoing. Accordingly, trading in the Company's shares on AIM remain suspended pending further updates.
Source: Fuel Cells Works
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