Industry: Green Hydrogen and electrolyzer
Share price: 21 NOK at time of publication
Market cap: 1176 MNOK
Comparable peers: Green hydrogen systems, Next hydrogen, Aker Clean hydrogen
Hydrogenpro is taking further steps to rollout their electrolyser production globally. This is an important step for the company and we look foward to closely following the development. An estimate from us is that the revenues from selling equipment to projects from this factory will at full capacity land at about 180 million USD and about 50 % of that would be fair to count from electrolyser sales originating from this specific factory.
17 November 2021: HydrogenPro AS (OSE: HYPRO) has reached an agreement with Tianjin HQY Hydrogen Machinery Co., Ltd. (“THM”) to create a joint venture, which will allow HydrogenPro to utilize THM’s electrolyser technology globally.
The first step of the joint venture is to set up a 300MW annual electrolyser production capacity in Tianjin, China, thereby completing the first major step of HydrogenPro’s global technology and fabrication plan. THM will transfer employees, fixed assets and intellectual property to the joint venture, which will be 75 percent owned by HydrogenPro and 25 percent by the current owners of THM. “
This transaction gives HydrogenPro full control over IP and core electrolyser technology that is key to our global fabrication plan. The joint venture will be very cost-effective and serve clients all over the world until our global fabrication set-up is completed, complying with all regulatory standards in the relevant locations. The next steps will be to establish footprints outside of China, based on technology and experience from the joint venture, to maintain cost leadership and to ensure high local activity in our end-markets,” says Elling Nygaard, CEO of HydrogenPro.
THM has a long-standing history of producing electrolyser components, parts and systems as a supplier to the electrolyser industry in China and has over the past years expanded into assembly and sales of complete electrolysers. HydrogenPro’s total investment cost is approximately NOK 48 million, whereof approximately NOK 8 million has been pre-paid and the remaining capital injection is approximately NOK 40 million (1 RMB = 1.35 NOK).
The board of the joint venture will consist of five representatives, with a majority appointed by HydrogenPro. HydrogenPro board member Jarle Dragvik will be chair of the joint venture board. The production facility will be located in Tianjin and will be equipped with new machines, which have already been purchased. It is expected to be ready for pilot production by the end of 2021.
When fully operational, the facility will have an annual electrolyser production capacity of 300MW, with substantial room for further expansion. “We are very happy that THM’s technology and the hard work we have put into developing it will now be utilized in the new joint venture. We look forward to working with HydrogenPro to reach a global market and further develop the most efficient and competitive electrolyser technology,” says Wang Zhou, CEO of THM. HydrogenPro will leverage its new, improved and cost-leading electrolyser technology for large industrial hydrogen installations, reducing power consumption by 14 percent, thus giving a significant cost advantage compared to other technologies. “
THM’s unique intellectual property and experience in the manufacturing of cost-competitive high-pressure alkaline electrolysers, makes them an ideal partner for HydrogenPro. When combined with our next-generation electrode technology from Denmark, we are able to significantly improve electrolyser efficiency, enabling hydrogen to be produced at the absolute lowest cost in the market for the time being. We regard this moderate investment in state-of-the-art production capacity to be in line with our asset light approach to developing a global supply chain,” Nygaard concludes.
The stock price development above was calculated by taking the opening price at the first day of October and the closing price at the last day of October.
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