Capital raise to support commercial progress and technology validation
Clean Power Hydrogen (LSE:CPH2) has announced plans to raise up to £7.5 million through a multi-stage equity fundraising priced at 1.5 pence per share.
The fundraising includes a £2.54 million firm placing, a £0.46 million conditional placing, a proposed subscription of up to £4 million from West Hill clients, a £10,000 directors’ subscription and a retail offer targeting at least £0.5 million. The firm placing is expected to complete in early July, while the remaining elements are subject to shareholder approval later this month.
The proceeds will be used to support the company’s capital-light strategy and continue the development and validation of its membrane-free electrolysis technology following the recent testing incident involving its 1MW MFE220 system.
Membrane-free technology remains central to growth plans
CPH2’s proprietary Membrane-Free Electrolyser technology is designed to eliminate the need for expensive membranes and critical raw materials while producing hydrogen with a purity of 99.999 mol% alongside 99.7% oxygen.
The fundraising follows the company’s investigation into a non-injury incident during final factory testing of the MFE220 unit. Management said the review concluded that the core electrolyser stack was not responsible for the incident and confirmed that the company is seeking a manufacturing partner to complete the remaining testing programme. These steps are expected to be important in rebuilding market confidence, advancing commercialisation and strengthening CPH2’s position within the growing green hydrogen sector.
Financial pressures continue despite improving technical outlook
Clean Power Hydrogen’s investment outlook remains constrained by a weak financial profile, characterised by minimal revenue, widening losses, significant cash burn and a substantially reduced equity base.
Technical indicators have improved, with the shares showing a positive trend and stronger market momentum. However, an elevated Relative Strength Index (RSI) suggests there is an increased risk of short-term share price volatility. Valuation remains difficult to assess given the company’s ongoing losses and the absence of a dividend.
More about Clean Power Hydrogen PLC
Clean Power Hydrogen plc is a UK-based developer of green hydrogen technologies specialising in patented membrane-free electrolysers capable of producing high-purity hydrogen and medical-grade oxygen. Its modular systems are designed for customers requiring advanced electrolysis and gas handling solutions, addressing a global electrolyser market estimated to be worth more than $14 billion.
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