UK-based green hydrogen technology and manufacturing group Clean Power Hydrogen (CPH2) has abandoned plans to manufacture membrane-free electrolysers after a serious testing incident damaged its 1 MW MFE220 unit during factory acceptance testing. The company says the failure is significant enough that the system cannot be repaired to continue the test programme, forcing it to shift away from manufacturing and toward commercial strategies.
The incident happened during the third and final stage of testing, when the unit was being shut down in a standard procedure. CPH2 said the cause is still under investigation, but its technical and operations leaders concluded the design would need substantial redesign before the mixed-gas system could be operated safely in all conditions.
The company says it does not currently have the financial, engineering or technical resources to carry out the redesign, and now faces material uncertainty over its ability to continue as a going concern. Trading in its AIM-listed shares remains suspended, and discussions with shareholders and potential new investors on a capital raise have been paused.
CPH2 says its intellectual property still has significant commercial value, and it is exploring licensing and other options to maximise value for shareholders and stakeholders. The announcement is a sharp reversal for a company that had been hoping to complete factory acceptance testing in May and recently signed a non-binding memorandum of understanding with Siemens to scale up production.
The decision highlights the challenges of bringing hydrogen electrolysis technologies from concept to commercial deployment, particularly when safety concerns, engineering changes and funding pressures converge.
