Clean Power Hydrogen (AIM:CPH2), the AIM-listed hydrogen technology developer, is targeting up to £7.5 million through a combination of placings, subscriptions and a retail offer to fund a strategic shift away from manufacturing and towards licensing its membrane-free electrolyser intellectual property.
The fundraise comprises a firm placing of £2.54 million, a conditional placing of £0.46 million, a conditional subscription of up to £4 million, a retail offer targeting a minimum of £0.5 million, and a directors' subscription of £10,000, all at an issue price not yet disclosed in the announcement.
The pivot follows a May 2026 incident during the third and final factory acceptance test of CPH2's 1MW MFE220 electrolyser, in which a hydrogen-oxygen mixture ignited, causing structural damage; a full technical report is expected by 31 August.
The board has concluded CPH2 lacks the financial and technical resources to complete MFE220 manufacturing and retesting independently, prompting a binding term sheet with Lisheen H2 Energy Park's Hidrigin unit, under which Hidrigin could become CPH2's exclusive manufacturing partner across the UK, Ireland, the US, Canada and Mexico; that deal has a long-stop date of 31 July.
Proceeds will fund the transition to a capital-light model, targeting monthly cash burn of £210,000 from October 2026, down from a previously forecast £800,000, and are expected to provide runway to June 2027; CPH2 held £4 million in cash at 31 December 2025.
Richard Scott, appointed chief executive officer elect, said the company would focus on "the efficient commercialisation and further global licensing of its intellectual property."
