H-Power has agreed heads of terms with hydrogen supplier Protium Green Solutions for a proposed HY5 ammonia-cracking unit capable of producing up to 500kg of fuel-cell-grade hydrogen a day. The initial arrangement envisages a two-year deployment beginning in the second half of 2027, but equipment supply and operation remain subject to planning approval, permits and execution of a definitive agreement.
The HY5 is designed to convert ammonia into hydrogen at or close to where the hydrogen will be used. Under the proposed terms, H-Power would provide the unit together with installation, commissioning, training and ongoing engineering support. Protium would operate the system. The companies have also left open the possibility of additional HY5 units at other Protium sites, although each further deployment would require its own commercial agreement and relevant approvals.
Ammonia offers a different logistics route from transporting hydrogen directly. Its molecules contain nitrogen and hydrogen, and catalytic cracking separates the feed into a hydrogen-rich gas and nitrogen. The basic reaction can be expressed as two molecules of ammonia producing one nitrogen molecule and three hydrogen molecules. Converting ammonia into usable hydrogen also requires appropriate heating, gas handling and purification rather than simply releasing hydrogen from a stored tank.
Hydrogen intended for fuel cells requires control of contaminants that can impair cell performance. Residual ammonia in particular must be managed after cracking, alongside any other constituents relevant to the specified fuel quality. The announced HY5 capacity is a design maximum for fuel-cell-grade hydrogen; the actual output of an installation would depend on operating conditions, uptime, feed availability and the system’s performance against its agreed specification.
Locating conversion near a customer changes the logistics required to supply hydrogen. Ammonia can be transported to the site and cracked there, reducing the volume of finished hydrogen that must travel from a distant production facility. The receiving site must instead accommodate ammonia deliveries and storage, the thermal demands of cracking, purification equipment and appropriate safety systems. Project economics will depend on those facilities as well as feedstock and distribution costs.
Ammonia is toxic, so storage and processing require containment, detection, emergency arrangements and equipment suitable for the site. Cracking also involves elevated temperatures and process gases, making engineering safeguards and operating procedures central to installation and commissioning. Protium’s site design will need to integrate those controls with the HY5’s utilities, hydrogen handling and permitting requirements before production can start.
The proposed supply follows an established relationship between the two companies. In June, Protium committed to purchase 5,000kg of hydrogen produced using H-Power’s ammonia-cracking technology at Dunsfold. A virtual hydrogen depot there allows Protium to collect hydrogen for distribution through its own network. That arrangement concerns hydrogen supplied from H-Power’s existing operation; the HY5 terms concern a separate customer-operated cracker.
The HY5’s nameplate capacity of 500kg a day gives Protium a substantially larger potential supply stream than the earlier 5,000kg hydrogen purchase commitment. Actual annual production will depend on operating days, maintenance intervals, ammonia availability and customer offtake. The initial proposed term is two years, and realised volumes will be established through the completed commercial arrangement and the unit’s operating performance.
The model would also change which organisation performs day-to-day production operations. H-Power would remain the equipment supplier and technical support provider, while Protium would operate the unit and coordinate hydrogen delivery to its customers. Installation and commissioning would need to demonstrate that the equipment works with the site utilities, controls, safety systems and intended offtake arrangements before ordinary commercial operation could begin.
The upstream production route for the ammonia will influence the hydrogen’s overall carbon footprint. An ammonia cracker converts the delivered chemical feedstock into hydrogen, while the energy used to manufacture and transport that feedstock is determined elsewhere in the supply chain. The two companies envisage the equipment as part of a green hydrogen supply model, with project-specific emissions dependent on the ammonia source and the energy required for conversion.
H-Power’s commercial activities already include hydrogen sales and its LC30 fuel-cell generator product. The proposed HY5 supply would add an equipment-and-support revenue stream, with Protium carrying out hydrogen production at the customer site. Contract value and service terms will be set by the definitive agreement, which is needed before the planned sale and deployment proceed.
Protium and H-Power will now work towards the final supply contract and site permissions. Subject to those steps, the first HY5 installation is planned for the second half of 2027 and an initial two-year term. Commissioning would establish the unit’s actual production performance and operating requirements, while further supply to Protium sites would depend on subsequent agreements.
