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Sees 200 mln stg sales from hydrogen-focused business
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Firms to jointly invest in CCM manufacturing facility
(Adds CEO comments, background)
By Aby Jose Koilparambil
Jan 31 (Reuters) - Johnson Matthey said on
Tuesday it was partnering in hydrogen technology with U.S.-based
Plug Power until at least 2030, as the British company
hones its focus on its green hydrogen-related business.
Companies globally are increasing investments in green
hydrogen, a zero-carbon fuel made by using renewable power from
wind and solar to split water into hydrogen and oxygen, in their
quest for energy which does not add to global warming.
Green hydrogen has been identified some as a potentially
important way of decarbonising transport, by powering vehicles
with only water as a by-product, as countries are looking to
meet their net zero goals.
Johnson Matthey is a leading supplier of catalyst coated
membranes (CCMs), which are a key component of fuel cells which
use hydrogen fuel to generate electricity.
The London-based firm said it would supply a substantial
portion of Plug's demand for components of fuel cells and
electrolysers, to be used for green hydrogen production.
"The rationale for the partnership is driven by the push
towards renewable energy, largely due to the regulatory
incentives provided in the United States and partly due to the
energy crisis in Europe," Johnson Matthey Chief Executive Liam
Condon told Reuters.
The FTSE 100 firm, which makes catalytic converters
for vehicles and refines the platinum group of metals used
mainly by automakers, said last year it was exiting its battery
materials business due to tough competition and low returns.
It said it is targeting 200 million pounds ($246 million)in
sales from its hydrogen technology business by 2025, compared
with just 25 million pounds last year, and expects "significant
sales growth" thereafter.
Johnson Matthey said the companies would jointly invest in
up to 10 gigawatt new CCM manufacturing capacity in the United
States, which would begin production in 2025.
The company, which did not disclose specific financial
details about the partnership, said the capital expenditure for
the facility was included within its 1 billion pound, three-year
capex outlook outlined in 2022.
($1 = 0.8121 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by
Rashmi Aich, Subhranshu Sahu and Alexander Smith)
