Key Points
- UK-based hydrogen technology company Clean Power Hydrogen plc (CPH2) has announced a new product development roadmap aimed at capitalising on growing hydrogen markets in the Middle East and Asia.
- The company’s board has approved investment from existing financial resources to develop new products and services, with the strategy designed to improve its commercial prospects in changing global market conditions.
- CPH2 plans to develop two electrolyser products: MFE Neo, a small-scale modular membrane-free electrolyser, and CSX Eco, a lower-cost cell-separated electrolyser.
- The revised engineering package for MFE Neo is expected to become available to manufacturing partners and licensees from December 2027, with preliminary designs anticipated approximately six months earlier.
- The engineering package for CSX Eco is expected to be available from May 2027, while an ultra-high-purity version is targeted for the first quarter of 2029.
- CPH2 intends to develop and manufacture a new electrolysis stack at its Doncaster facility, with deliveries to other manufacturers expected to begin in March 2028.
- The company estimates that more than 170 electrolyser manufacturers worldwide could potentially use its proprietary electrolysis stack.
- A new chargeable industrial design and consultancy service, MFE Plant Solutions, is scheduled to launch in January 2027.
- The consultancy service will target industries including steel, glass, brick manufacturing, sustainable aviation fuel, green ammonia and other industrial chemical processes.
- CPH2’s international strategy follows changes in the UK hydrogen funding environment, including the government’s cancellation of £500 million in capital grants, partly replaced by £300 million in conditional loans and equity.
- Chief Executive Officer Richard Scott said the company was targeting well-capitalised industries with substantial hydrogen requirements that do not depend on government subsidies.
- CPH2 stated that it has sufficient capital to deliver its product roadmap throughout 2027.
Why Is CPH2 Targeting Hydrogen Markets in the Middle East and Asia?
Clean Power Hydrogen plc (CPH2), a UK-based hydrogen technology developer headquartered in Doncaster, has announced a new product development roadmap designed to expand its commercial opportunities in the Middle East and Asia. The company plans to develop two new electrolyser solutions, manufacture proprietary electrolysis stacks and introduce industrial engineering consultancy services as it responds to changing conditions in the global hydrogen market. The strategy represents a renewed commercial direction for the business, with the company seeking to make its technology available through international licensing arrangements and manufacturing partnerships.
As reported by the FCW Team of FuelCellsWorks in its 10 November 2026 coverage, CPH2’s board has approved investment from the company’s existing resources to advance a product roadmap that builds on its established research, intellectual property and technology development capabilities.
The company believes that demand for hydrogen production technology is developing most rapidly in the Middle East and Asia, while commercial demand in the UK remains challenging. Its proposed capital-light business model, which focuses on global technology licensing, is intended to help it reach markets where hydrogen deployment offers stronger commercial opportunities.
According to the company’s announcement, the International Energy Agency’s (IEA) Global Hydrogen report, published in June 2026, recorded 25% growth in low-emission hydrogen volumes during 2025 and projected similar growth throughout 2026.
The announcement comes as CPH2 adjusts its strategy to reflect international market conditions and the changing availability of government support for hydrogen development in the UK.
How Have Changes in UK Hydrogen Funding Influenced CPH2’s Strategy?
The UK hydrogen sector has faced changes in its public funding environment following the government’s decision on 28 October 2026 to cancel £500 million in capital grants for the hydrogen industry.
CPH2’s announcement stated that the cancelled grants were partly replaced by £300 million in conditional loans and equity. It also highlighted uncertainty surrounding the Hydrogen Allocation Round 2 (HAR2) contract-for-difference mechanism, which was described as progressing without identified funding.
The company clarified that it was not directly affected by these funding changes. Nevertheless, the revised roadmap reflects its assessment that international markets could provide more attractive opportunities for its technology and commercial activities.
In her report for Energy Voice, news editor Erikka Askeland also highlighted the company’s decision to look beyond the UK following changes to government support. Askeland reported that CPH2 was seeking opportunities in the Middle East and China, while delays to hydrogen policy development and future support arrangements were adding to the challenges facing the domestic sector.
The Energy Voice report also referred to earlier difficulties experienced by the company, including a testing incident at its Doncaster facility that resulted in the suspension of trading on the London Stock Exchange earlier in 2026. The company subsequently refinanced and adopted a revised approach to its products and commercial model.
CPH2’s latest announcement indicates that its response will involve developing products for different cost and performance requirements rather than concentrating on a single electrolyser design.
What Is CPH2’s New MFE Neo Membrane-Free Electrolyser?
One of the central developments in the roadmap is MFE Neo, a small-scale modular membrane-free electrolyser that will remain the company’s core product.
CPH2 said its membrane-free electrolysis technology has benefited from approximately a decade of advanced research and development. The company intends to build on its patented technology and accumulated intellectual property to develop a product suited to changing requirements in the global hydrogen market.
The development programme also addresses the technical issues associated with the late-stage testing incident involving the company’s MFE220 electrolyser earlier in 2026.
According to the company’s announcement of 10 November, research and design work began following the incident, with international partners supporting the programme. The work includes modelling gas thermodynamics, fluid flow, heat transfer and mass transfer mechanisms to identify the design changes required for future configurations.
The company stated that these changes would reflect the conclusions of its technical root cause analysis and support the safe management of its membrane-free electrolysis technology.
CPH2 expects preliminary designs for MFE Neo to become available approximately six months before the revised engineering package. The full package is anticipated to be available to manufacturing partners and licensees from December 2027.
The proposed licensing arrangements are also expected to provide opportunities to generate revenue through engineering packages.
The company believes MFE Neo could offer a lower lifetime levelised cost of hydrogen (LCoH), alongside high-purity hydrogen and oxygen production. It also intends to avoid the use of expensive membrane materials containing platinum, iridium and per- and polyfluoroalkyl substances (PFAS), which are sometimes described as forever chemicals.
These performance and cost advantages represent CPH2’s stated development objectives rather than independently confirmed commercial outcomes.
How Will the CSX Eco Electrolyser Compete With Chinese Manufacturers?
Alongside MFE Neo, CPH2 is developing a second product called CSX Eco, a robust, lower-cost electrolyser based on proprietary cell separation technology.
The product is intended to address a different part of the market, particularly customers seeking lower initial investment requirements and competitive operating economics.
According to the company’s announcement, CSX Eco will use elements of CPH2’s existing intellectual property to develop a simpler electrolyser design. The company intends to avoid platinum, iridium and PFAS-based materials in this product as well.
A key objective is to compete on price and efficiency with alkaline electrolysers imported from China.
In its report for Energy Voice, Erikka Askeland highlighted CPH2’s assessment that European hydrogen projects have historically placed considerable emphasis on advanced technologies, while Chinese manufacturers have concentrated on simpler, lower-cost systems that can be effective in particular technical and funding conditions.
CPH2 believes that these lower-cost product types account for a larger share of the market. Its strategy is therefore to offer solutions that address both advanced technology requirements and projects where lower upfront capital expenditure is a priority.
The company expects the CSX Eco engineering package to become available to manufacturing partners and licensees from May 2027.
It is also developing an ultra-high-purity version of the product, designed to supply hydrogen and oxygen for applications requiring particularly high gas purity. This version is expected to become available from the first quarter of 2029.
The development of CSX Eco will provide CPH2 with an additional product offering as it seeks to serve customers with different technical requirements and investment budgets.
Where Will CPH2 Manufacture Its New Electrolysis Stack?
Another important part of the roadmap involves the development and manufacture of a new electrolysis stack at the company’s Doncaster facility.
The stack will form a central component of the CSX Eco electrolyser and will be based on CPH2’s existing stack technology.
The company intends to incorporate proprietary cell separation technology designed to extend the component’s operating life and support longer warranties.
CPH2 plans to use the new stack in its own electrolyser products while also making it available to other manufacturers through original equipment manufacturer (OEM) arrangements.
The company expects the first deliveries to begin in March 2028, with manufacturing taking place directly at its Doncaster factory.
According to CPH2, more than 170 electrolyser manufacturers worldwide could potentially benefit from this type of component. The company believes that providing an established stack solution could help manufacturers avoid the costs, development risks and limited economies of scale associated with designing their own systems.
As reported by Fiona Craig for ADVFN on 10 November 2026, the proposed manufacturing programme will create an additional commercial opportunity beyond CPH2’s own electrolyser products.
The development also maintains a manufacturing element within the company’s revised, capital-light strategy, while creating the possibility of supplying technology components to a wider international customer base.
What Is CPH2’s MFE Plant Solutions Consultancy Service?
CPH2 is also planning to expand its activities beyond electrolyser manufacturing and technology licensing through a new service called MFE Plant Solutions.
The proposed service will provide chargeable engineering design and consultancy support to industrial customers seeking to improve hydrogen production costs, operational reliability and the integration of hydrogen and oxygen into larger industrial facilities.
The company intends to use its existing proprietary technologies and engineering capabilities to develop solutions for applications where hydrogen is required as part of wider industrial processes.
Target industries include steel production, particularly direct reduced iron (DRI) processes, glass manufacturing and brick production.
Other applications identified by CPH2 include sustainable aviation fuel (e-SAF), green ammonia, methanation and chemical processes involving Fischer-Tropsch synthesis and reverse water gas shift (RWGS) technology.
These processes can require the integration of hydrogen and oxygen into complex industrial production systems. CPH2 intends to help customers improve efficiency, reduce carbon-related costs and maintain continuity of production.
The company expects MFE Plant Solutions to become available from January 2027.
Its proposed activities will include structured design engagements, bespoke research and analysis programmes, and engineering support for larger hydrogen-related facilities.
The service is intended to provide an additional commercial revenue stream alongside technology licensing and the planned supply of electrolysis stacks.
It also broadens CPH2’s potential customer base by allowing the company to work with industrial operators that require hydrogen integration expertise rather than purchasing an entire electrolyser system.
Which Industries Is CPH2 Targeting for Its International Expansion?
CPH2’s revised commercial strategy is intended to reach industries with substantial hydrogen requirements and the financial capacity to invest in industrial technology without depending entirely on government subsidies.
Chief Executive Officer Richard Scott identified petrochemical refining, defence, semiconductors, pharmaceuticals, sustainable aviation fuel, methanol, ammonia and water treatment as potential areas of demand.
In his statement accompanying the announcement, Scott said: “Today marks a turning point for CPH2.”
He explained that board approval of the future product roadmap had positioned the company for renewed commercial activity and that its evolving products were being developed from innovations achieved in previous years.
Scott also emphasised the importance of addressing hydrogen demand wherever it develops internationally, rather than restricting the company’s opportunities to a single geographical market.
He said that CPH2 could now target growing, well-capitalised sectors that have compelling requirements for hydrogen but do not rely on government subsidies.
The chief executive further highlighted the company’s membrane-free technology and its plans to develop small modular units for an evolving market. He also referred to the development of a simpler, lower-capital-cost electrolyser and specialist services for industrial-scale applications and plants.
The sectors identified by Scott reflect a broad range of potential uses for hydrogen, from chemical manufacturing and industrial processing to energy-intensive applications and high-purity gas requirements.
However, the announcement did not confirm new customer orders or specific commercial contracts associated with the latest roadmap.
How Much Funding Does CPH2 Have for Its Product Development Programme?
CPH2 stated that it has sufficient capital to deliver the product roadmap throughout 2027.
The company’s decision to use existing resources for the programme is consistent with its stated intention to operate through a capital-light business model supported by international licensing arrangements and technology partnerships.
The development schedule also spreads the planned commercial activities across several years.
MFE Plant Solutions is expected to begin operating in January 2027, followed by the anticipated availability of the CSX Eco engineering package in May 2027.
Preliminary MFE Neo designs are expected approximately six months before the full engineering package becomes available in December 2027.
The Doncaster-manufactured electrolysis stack is expected to enter initial deliveries in March 2028, while the ultra-high-purity CSX Eco version is targeted for the first quarter of 2029.
In her ADVFN report, Fiona Craig noted that CPH2 had not provided revenue forecasts or confirmed customer orders linked to the new roadmap. The commercial potential of the programme will therefore depend on successful product development, licensing arrangements, manufacturing progress and customer demand.
The company has outlined its intended development timetable and funding position, but the proposed dates and commercial opportunities remain subject to the progress of the relevant engineering and development programmes.
What Does CPH2’s Product Roadmap Mean for the Hydrogen Industry?
CPH2’s announcement reflects the changing competitive environment in the international hydrogen technology market, where manufacturers are seeking to balance performance, reliability and capital costs.
The company is pursuing several complementary commercial activities rather than relying exclusively on the sale of complete electrolyser systems.
MFE Neo will continue the development of its membrane-free technology, while CSX Eco is intended to provide a lower-cost alternative for customers with different investment requirements.
The planned Doncaster stack manufacturing operation could extend CPH2’s reach into the wider electrolyser supply chain by making proprietary components available to other manufacturers.
Meanwhile, MFE Plant Solutions could establish a separate service business focused on engineering, research and industrial integration.
The company’s decision to prioritise opportunities in the Middle East and Asia also demonstrates how UK technology developers are responding to differences in regional hydrogen demand and funding conditions.
For the wider industrial sector, the development of more affordable electrolyser technology and specialist hydrogen integration services could support efforts to incorporate lower-emission production processes into energy-intensive industries.
Nevertheless, the success of CPH2’s roadmap will depend on its ability to address the technical challenges identified during earlier testing, meet its proposed engineering milestones and secure commercial relationships with manufacturers and industrial customers.
For organisations examining hydrogen technology, industrial decarbonisation and the integration of emerging energy systems, developments such as these also demonstrate the growing importance of technical expertise and effective environmental planning. This is particularly relevant to professional learning in Environmental and Agriculture, where understanding environmental technologies, sustainable industrial practices and low-emission production systems is increasingly important.
CPH2’s latest roadmap therefore marks a significant strategic development for the Doncaster-based company as it seeks to establish a broader international presence through product innovation, technology licensing, component manufacturing and industrial engineering services.