McPhy, specialist in equipment for the production, storage and distribution of hydrogen (H2), has announced its revenue for 2017.

McPhy’s revenue increased by 34%, crossing the €10m ($12m) threshold. This growth was primarily driven by the European zone (up 84%), a market with strong growth and in which McPhy is well positioned due to its historic anchorage. The group offers unparalleled expertise in the development and engineering of large electrolysis systems in Germany, a solid industrial infrastructure in Italy and an engineering and prototyping capacity for storage systems and H2 stations in France. Lastly, this solid level of performance was obtained despite the postponement of several important contracts, expected in the second half of 2017, to the fiscal year 2018.

In June 2016, McPhy announced the entry into force of a contract for €6.4m ($7.8m) for the delivery of 4MW H2 generation units (Power-to-Gas) in Hebei (China). Revenue recognition for work in progress started in the second half of 2016 and was followed by the delivery of the units in the first half of 2017.

5% of the contract remain to be done in fiscal year 2018. Excluding the impact of this contract, the revenue growth for the other activities would have been 65%.

As of 31st December 2017, McPhy has a net cash position of €5m ($6m).

“2017 was marked by a turning point that confirmed the reality and the ramp-up of the clean Hmarket.”

Pascal Mauberger, Chairman and CEO of McPhy

Accelerating worldwide development of clean hydrogen

2017 was marked by a turning point in the development of clean H2 throughout the world. This was exemplified by studies conducted by the Agence Internationale de l’Energie (AIE) and the H2 Council, which confirm that H2 is indispensable in order to exit a carbon economy and to respond to the challenges of public health and the perils of climate change. According to the Hydrogen Council study, the annual demand for H2 could represent globally 18% of the total energy demand by 2050. By this horizon, H2 could generate a revenue of $2,500bn and create more than 30 million jobs. In the near term, $25bn should be invested on a yearly basis between 2018 and 2030, of which 2/3 in the production equipment and in the implementation of the decarbonised H2.

Activity growth

McPhy’s ‘qualified sales pipeline’ has doubled over the last 12 months and today stands at more than $80m ($98m), which thereby illustrates the acceleration of the H2 market. This market indicator does not take into account the massive scale electrolysis platform projects (from 10 to 100 MW), for which the impact on revenue will be quite significant.

McPhy has at its disposal an offer which is perfectly poised on these markets thanks to the McLyzer generators. McPhy is in the process of developing a new generation of electrolyzers that are more compact, responsive and efficient. These new units will strengthen its range of large capacity electrolyzers, thereby offering electricity networks the flexibility they need to absorb intermittent renewable energy supply.

Pascal Mauberger, Chairman and CEO of McPhy, stated, “2017 was marked by a turning point that confirmed the reality and the ramp-up of the clean H2 market. McPhy’s performance this year shows that we were able to identify and develop very early on the advanced technology that responds to the colossal needs of the market, brought by the necessary transition to a decarbonised society. Today, our know-how is acknowledged and translates into commercial and industrial success internationally for all our activities, as was proven by the delivery of 4MW H2 generation units (power-to-gas) in Hebei (China), and the first exported H2 stations. Our qualified sales pipeline has doubled in one year and is set at over €80m ($98m). We are determined more than ever to continue to seize these opportunities.”