McPhy has entered into a partnership agreement to develop carbon-free hydrogen (H2) in France and around the world with French electric utility company EDF Group.

The industrial and commercial partnership agreement is a new milestone for EDF in terms of its contribution to the energy transition with its expansion into carbon-free H2 solutions to develop in the medium term a carbon-free and competitive H2 fuel offering.

Cédric Lewandowski, EDF Group’s Senior Executive Vice-President in charge of Innovation, Strategy and Planning, commented, “We are delighted to announce this link-up with McPhy, a leading player in H2 and a group with which we have been working for several years. This partnership represents a first step that will enable EDF to speed up its expansion into this burgeoning new market that will create new jobs in France and around the world.”

Pascal Mauberger, Chairman and CEO of McPhy, added, “We are very pleased to have sealed this partnership with EDF Group, a world leader in low-carbon energy. The deal represents a key new milestone in McPhy’s development. With the additional financial resources EDF Group is bringing and its support, we will be able to accelerate the pace of our expansion, ramp up our business development and move into new markets.”

“We wish to thank EDF Group for the trust it has shown in our technology and our production infrastructure for hydrogen-based solutions. From a personal perspective, I am very proud to be leading this new stage in McPhy’s development.”

Financial terms

EDF’s investment will take place through a reserved capital increase by McPhy totalling around €16m ($18.8m) at a price of €5.10 ($6.12) per share (representing a discount of 4.2% compared with the average closing price for the last three months, of €5.32 ($6.26), and of 15% compared with the current price per share of €6 ($7.06)), representing 3,137,250 new McPhy shares, around 21.7% of its share capital, and 20.4% of its voting rights. The capital increase remains contingent upon satisfaction of the conditions precedent, including shareholder approval at McPhy’s general meeting on 26 June 2018, and the approval visa of the French financial market authority (AMF) upon the prospectus related to the capital increase. This should be finalized within days of this approval being obtained.

In addition, the appointments of two board members named by EDF Nouveaux Business will be proposed at McPhy’s general meeting on 26 June 2018.