Clean Power Hydrogen: MFE220 Testing Incident Investigation Update

Clean Power Hydrogen PLC

19 October 2026

 

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 which is part of UK law by virtue of the European Union (withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

19 October 2026 

Clean Power Hydrogen plc

(“CPH2”, the “Company” or the “Group”)

Progress update on investigation into MFE220 testing incident

Clean Power Hydrogen plc (AIM: CPH2), the UK-based hydrogen technology company, provides an update on the investigation into the incident that occurred on 28 May 2026 during the third and final stage of factory acceptance testing ("FAT3") of the Company’s 1MW MFE220 membrane-free electrolyser.

The Company has undertaken an extensive internal technical investigation. Whilst certain technical aspects remain subject to ongoing external verification by specialist subject-matter experts, the Board considers it is sufficiently advanced to provide the following update.

Provisional technical findings

The work completed to date has identified a number of unrelated factors which are likely to have contributed to the incident. No single definitive ignition source has been identified. The investigation has not identified any evidence that the incident originated within the proprietary membrane-free stacks or associated separator vessels.

The primary factors include:

• gas velocity and particle impingement in the vicinity of valve V705, which may have generated sufficient energy to initiate ignition during the standard controlled venting process;
• the specification and configuration of certain check valves, hoses and pipework bends;
• the extent to which supplier quality and the nature of the exposed outdoor test facility contributed to the overall system cleanliness required within the design, at the time of the incident and its contribution to particle contamination within the unit; and
• applicability and adherence to the relevant European Industrial Gases Association (“EIGA”) guidance to the Company’s novel technology and basis of design. This is being assessed as part of the remedial design process.

The board believes that these primary factors, in combination, are highly likely to be responsible for the testing failure. The findings indicate that changes to certain component designs, system-cleanliness protocols, manufacturing control and operating condition monitoring will be required to successfully complete testing.

The Company has commenced remedial research and design work to address these factors, both individually and in combination. Subject to satisfactory test results and Board approval of the final conclusions of the investigation, the Company intends to provide a revised design package for relevant licensees and prospective manufacturing partners.

  Update on Hidrigin arrangements

On 25 June 2026, the Company announced that it had executed a binding term sheet with Lisheen H2 Energy Park Limited ("Hidrigin") in relation to a proposed £750,500 secured convertible loan note (the "CLN"), subject to satisfaction of certain conditions and execution of definitive documentation. Consistent with the previously announced strategic pivot to a capital-light technology development and licensing business, completed electrolyser manufacturing no longer takes place within the Company. As a result, a broader Strategic Partnership and Manufacturing and Technology Development Agreement is in negotiation with Hidrigin.

Following completion of the Company’s oversubscribed fundraising, the Company and Hidrigin agreed not to proceed with the CLN. The Company has repaid a £750,500 interim payment previously received under the legacy MFE220 sales contract. Accordingly, no CLN has been issued or security granted.

Hidrigin’s technology license is now being extended. Agreement has been reached to extend the license to include own-use rights in the United States. Discussions regarding the previously announced territories of the USA, as well as Canada, Mexico and the UK are ongoing, and both sides expect to make positive progress.  There can be no certainty that these discussions will result in a definitive agreement.

Commenting on progress, Richard Scott, Chief Executive Officer of CPH2, said: “The investigation has now progressed sufficiently to identify the most likely causes of the incident and the principal areas requiring remedial work. This is an important milestone. The work completed to date continues to support our previous conclusion that there is no evidence that the incident originated within the proprietary membrane-free electrolyser stacks or the separator vessels.

Independent verification remains in progress. However, given our confidence levels on the detailed and extensive work to date, we have commenced the redesign, research and testing required to address the factors identified. This will result in an improved technology roadmap that will be communicated to the market in due course and forms part of our discussions with prospective Strategic Manufacturing Partners.”

For more information, please contact:

Background on CPH2

CPH2 is the holding company of Clean Power Hydrogen Group Limited which has a decade of dedicated research and product development experience that has delivered global patents in breakthrough hydrogen and oxygen production technology. The Group's strategic objective is to deliver the lowest lifetime LCOH in the market in relation to the production of hydrogen for the growing decentralised and alternative energy markets. CPH2 is listed on the AIM market and trades under the ticker AIM:CPH2.

For more information: https://www.cph2.com

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