New milestones have been reached in McPhy’s development, the French company revealed as it announced its 2018 half-year results.

The dedicated hydrogen (H2) solutions provider’s revenue settled at €3.5m ($4m), compared with €5.5m ($6.4m) in the first six months of 2017. The figure for the first half of 2017 included €2.8m ($3.3m) in revenue under the HEBEI contract.

Despite delays to competitive tenders temporarily affecting revenue growth and operating income, McPhy maintains its business momentum, especially in very large-scale electrolysis platform projects (from 10 to 100 MW) for industry, which the impact should be substantial on revenue.

During the first half of the year, McPhy logged an order in the clean mobility market for a second H2 station with an electrolyser from CNR and ENGIE GNVERT in Lyon. It also inked a deal for its first H2 station for buses in the Hauts de France region, lifting to 11 the number of McPhy H2 stations in France, and to 30,500km in clean mobility the daily potential of all its stations.

As a result of revenue trends in the first half of 2018, combined with a significant R&D effort, McPhy’s operating performance fell back 34% compared with the first six months of 2017.

McPhy held €18.6m ($21.7m) in cash at 30th June (2018) following the capital transactions completed in the first half of the year. Its stronger balance sheet will provide a springboard for it to speed up the pace of its growth, energise its business development and conquer new markets, the company explained.

Further business expansion

During the first half of 2018, the expected ramp-up in the H2 market predicted in the Hydrogen Council’s “Scaling Up” report clearly materialised. The French Government also undertook to support the development of a carbon-free H2 sector as part of the energy transition. In 2019, a budget of €100m ($116.6m) will be devoted to rolling out carbon-free H2 in the industry, mobility and energy sectors across France.

The large-scale deployment of these new clean H2 applications and technologies will be made possible largely through water electrolysis. With its industry-leading Augmented McLyser technology, McPhy has established an undeniable lead in the sector, and its product range is getting more efficient and competitive all the time.

Its “qualified commercial pipeline” currently stands at €80m ($93.3m). This business indicator does not include very large-scale electrolysis platform projects (from 10 to 100MW).

McPhy is reiterating its forecast of business growth on the basis of the current highly supportive market conditions and its robust balance sheet.

Pascal Mauberger, Chairman and CEO of McPhy, commented, “Our performance during the first six months of 2018 showed that McPhy is powering ahead. We demonstrated this by reaching several key milestones in our development, despite a delay to competitive tenders temporarily affecting our revenue growth and our operating income.”

“Our technological advances and our cutting-edge industrial infrastructures have established our leadership credentials with major industry players and enabled us to forge key partnerships.”

“We launched in April a whole new generation of electrolysers under our technology partnership with De Nora. They represent a genuine technological breakthrough that substantially strengthens our competitive advantage.”

“We have also strengthened our offering in clean mobility with a range of dedicated refuelling stations for 700-bar vehicles. Positive tests were conducted alongside Toyota and will enable us to finalise the architecture for the first of the series in October this year.”

“By the way, we signed in June an industrial and commercial partnership with EDF, a world leader in low-carbon energies to develop carbon-free H2 in France and around the world. With the additional financial resources and backing of the EDF group, we will speed up the pace of our growth, energise our business development, and conquer new markets.”

“On the sales front, we logged an order from CNR and ENGIE for a second refuelling station in Lyon. We also recorded an order for a 200 kg per day capacity bus recharging station with an electrolyser for the Lens-Béthune urban area.”

“We are reiterating our confidence in McPhy’s medium-term growth prospects on the strength of our positioning, our robust balance sheet and the tremendous prospects for the carbon-free hydrogen market, including the French deployment plan announced by the French minister Nicolas Hulot on 1st June (2018).”