H-Power reports narrower loss, strikes fuel cell sale deal

(Sharecast News) - H-Power reported a narrower first-half loss on Wednesday and said it was beginning to build commercial momentum, alongside a separate agreement to sell two LC30 fuel cell generators to TAMGO for trials in Saudi Arabia.

The AIM-traded company, formerly AFC Energy, said revenue rose to �253,000 in the six months ended 30 April from �17,000 a year earlier, reflecting hydrogen sales and revenue from its joint development agreement with Komatsu.

Its loss after tax narrowed to �5.8m from �10.1m, while cash absorbed by operations fell to �7.5m from �10.7m despite capitalised development spending rising to �4.0m from �3.1m.

H-Power ended the period with total available cash of �17.4m, including �8.2m of cash and cash equivalents and �9.2m of short-term investments, with �3.2m of R&D tax credits expected in the second half.

H-Power said it had signed a 5,000-kilogram hydrogen sale agreement with Protium, described as the UK's first bulk green hydrogen sale from cracked ammonia.

The deal follows the grant of a permit variation by the UK Environment Agency allowing hydrogen produced from the company's Dunsfold ammonia cracker facility to be sold to customers.

The company said hydrogen sales from cracked ammonia had started from Dunsfold, with Protium set to use the site as a virtual depot to supply customers in south-east England.

The hydrogen will be produced by converting bio-ammonia into 99.97% ISO 14687 Grade D green hydrogen.

H-Power also said Speedy Hire had placed a replenishment order for 15 LC30 hydrogen fuel cell generators for the Speedy Hydrogen Solutions joint venture, subject to CE certification, which remains on track for August.

The joint venture is expected to meet, or exceed, its target utilisation of generators by October 2026 following increased demand and a commercial offer at price parity with diesel.

In a separate announcement, H-Power said it had signed an agreement to sell two LC30 units to TAMGO, its exclusive distribution partner for fuel cell generators in Saudi Arabia and Gulf Cooperation Council countries.

The units will undergo field-follow trials in Saudi Arabia during the hottest part of the year, followed by customer trials, product demonstrations and marketing campaigns across the region.

H-Power said the LC30 was rated to operate in temperatures from minus 20C to plus 50C, making it suitable for Saudi Arabia and the wider Gulf region.

The company said development of its HY5 decentralised portable ammonia cracker, capable of producing up to 500 kilograms of hydrogen per day, remained on track.

It said the product was expected to provide the lowest-cost bulk fuel cell-grade hydrogen available to UK industrial customers without government subsidy by the end of calendar 2026.

H-Power also said it had signed a joint development agreement with Komatsu, with an initial contract value of about $2m, to integrate its ammonia cracking technology with Komatsu diesel internal combustion engines.

Chief executive officer John Wilson said the company had continued to make "considerable progress" in line with board expectations during the first half and after the period ended.

"Together with our strong balance sheet and a building order book, we remain confident of delivering scalable commercial success and creating significant value for our shareholders and stakeholders," he said.

Wilson said the TAMGO agreement demonstrated the partner's commitment to the LC30 product and had the potential to unlock significant demand across Saudi Arabia and the wider Gulf region.

Rami Elayan, general manager of TAMGO, said the acquisition of the LC30 units represented "the next step" in introducing hydrogen-powered solutions to Saudi Arabia, following the deployment of fuel cell technology during Extreme E and Extreme H events in the kingdom in 2025.

At 0845 BST, shares in H-Power were up 5.89% at 13.55p.

Reporting by Josh White for Sharecast.com.

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