H-Power (AIM:HPOW) announced it has agreed Heads of Terms with Protium Green Solutions to supply one of its HY5 decentralised ammonia crackers, opening up a new product revenue line for the AIM-listed hydrogen technology company.
The initial deployment is expected to begin in the second half of 2027 and run for two years, subject to planning and permitting approvals and a definitive agreement.
The HY5 is H-Power's commercial-scale cracker, designed to produce up to 500 kg of fuel-cell-grade hydrogen a day at or close to the point of demand, reducing the cost and complexity of transporting hydrogen over long distances.
Under the proposed terms, H-Power will supply the unit along with installation, commissioning, training and ongoing engineering support, while Protium will operate it.
The deal extends a relationship that began in June, when Protium contracted to buy 5,000 kg of fuel-cell-grade green hydrogen produced from cracked ammonia at H-Power's Dunsfold pilot facility in Surrey, a sale the company described at the time as the UK's first commercial bulk sale of hydrogen from cracked ammonia.
That arrangement also established a virtual hydrogen depot at Dunsfold, letting Protium collect H-Power-produced hydrogen for distribution through its own network.
Today's agreement moves the relationship from hydrogen supply and distribution to the deployment of H-Power's HY5 hardware itself, and sets a framework for further HY5 units at other Protium sites, subject to demand and additional commercial agreements.
"This agreement is another important milestone in the reset of H-Power from a technology-led business into a commercially focused products company," said chief executive John Wilson, adding that the company now has "LC30 product sales and hydrogen sales underway" alongside the new HY5 route.
Christopher Jackson, chief executive of Protium, said the deal reaffirms "our strong interest in the role that distributed ammonia cracking can play as an additional source of cost competitive, unsubsidised, green hydrogen supply for Protium's customers."
The agreement follows H-Power's progress elsewhere in its commercial pipeline, including a TÜV SÜD attestation of conformity for its LC30 fuel-cell generator in August, which cleared a CE certification requirement tied to a 15-unit replenishment order from Speedy Hire.