H-Power agrees ammonia cracker supply with Protium

H-Power has signed heads of terms with Protium Green Solutions for the supply of its HY5 decentralised ammonia cracker, designed to produce up to 500kg of fuel-cell-grade hydrogen per day. The proposed two-year deployment would begin in the second half of 2027, subject to planning and permitting approvals and execution of a definitive supply agreement.

Under the proposed arrangement, H-Power would supply the HY5 and provide installation, commissioning, training and continuing engineering support. Protium would operate the equipment, using the hydrogen produced to serve its customers. Protium would be responsible for running the cracker after H-Power completes installation and commissioning.

The two companies already have a commercial relationship involving hydrogen supplied from H-Power’s facility at Dunsfold in Surrey. In June, Protium committed to purchase 5,000kg of fuel-cell-grade hydrogen produced from cracked ammonia. The parties also established a virtual hydrogen depot at Dunsfold, from which Protium can collect hydrogen for distribution through its network.

Supplying the HY5 would extend that relationship from purchasing finished hydrogen to operating H-Power’s production technology at another location. Protium would receive access to the reactor equipment needed to convert ammonia into hydrogen closer to its intended customers, while H-Power would provide the engineering services necessary to introduce and support the system.

The HY5 uses ammonia as a hydrogen carrier. Ammonia contains hydrogen and nitrogen, with the chemical formula NH3. Heating it under suitable conditions allows the compound to decompose into hydrogen and nitrogen, with two ammonia molecules producing three hydrogen molecules and one nitrogen molecule. The reaction requires a controlled thermal process and suitable downstream treatment to produce hydrogen at the intended purity.

Ammonia cracking changes the form in which hydrogen is transported and supplied. Rather than moving all of the finished hydrogen from a central production facility to the customer, ammonia can be delivered to a cracking installation, where the hydrogen is released for use. The arrangement substitutes a local conversion process and ammonia handling infrastructure for part of the finished hydrogen distribution requirement.

The proposed installation would require suitable equipment for receiving and storing ammonia, feeding it into the reactor and managing the resulting gas stream. The design must also account for the energy consumed during cracking and the treatment needed to meet the hydrogen quality required by downstream equipment. The published HY5 capacity is a maximum design output rather than a guarantee of production during every operating hour.

Fuel-cell-grade hydrogen requires control of impurities that can impair electrochemical performance. The gas leaving an ammonia cracking reactor contains nitrogen alongside the hydrogen, while residual ammonia must also be managed. Purification equipment and gas quality monitoring are therefore important parts of delivering a product suitable for the intended fuel cell application.

The exact purification arrangement depends on the reactor and system design. Its performance determines the quality and quantity of hydrogen available for delivery, while auxiliary equipment consumes additional energy during operation. The completed installation must be commissioned against the specified hydrogen production and purity requirements before it can be relied upon to supply customers.

Hydrogen fuel cells produce electricity through an electrochemical reaction involving hydrogen and oxygen. Their electrical output depends on the quantity and quality of hydrogen supplied, the efficiency of the fuel cell and the power conversion equipment connected to it. H-Power’s HY5 produces hydrogen, while its separate LC30 product is a fuel cell generator rated at 30kW of electrical output.

Installing the HY5 at or near a customer site would also change the operational responsibilities associated with hydrogen supply. Protium would need personnel trained to operate the cracker and associated equipment, while maintaining appropriate feedstock deliveries and product handling arrangements. H-Power’s proposed training and engineering support would help establish those operating capabilities before the unit enters service.

Ammonia handling requires appropriate industrial safety arrangements because the substance is toxic and must be contained and monitored. Site design needs suitable storage, isolation, ventilation and emergency procedures, together with the permissions governing the planned activity. These requirements form part of the development work preceding the proposed deployment and will be assessed through the relevant planning and permitting processes.

Thermal and electrical systems must be coordinated during operation. The cracking process requires heat, while instrumentation, controls and auxiliary machinery support the reactor and its gas treatment equipment. The selected site and detailed engineering design will determine the installation’s energy supply arrangements and electrical demand.

Producing hydrogen closer to customers can alter distribution costs, storage requirements and the amount of transport infrastructure needed. The final economics will depend on ammonia procurement, conversion energy, equipment utilisation, maintenance and the logistics of delivering both the feedstock and finished hydrogen. The site-specific balance of those costs will determine the commercial viability of the proposed installation.

The heads of terms also provide a framework under which Protium could consider additional HY5 units at other locations as demand develops. Each expansion would require further commercial agreement, suitable sites and the relevant regulatory approvals.

H-Power chief executive John Wilson identified equipment supply as a further part of the company’s commercial model alongside hydrogen sales and its LC30 generator business. Protium chief executive Christopher Jackson also supported expanding the companies’ existing relationship through decentralised ammonia cracking. The proposed installation would extend that existing commercial relationship into customer-operated hydrogen production equipment.

Before that can happen, the parties must agree the definitive contract, select and prepare the deployment location and obtain the necessary permissions. H-Power would then undertake supply, installation and commissioning, with Protium assuming operation of the completed equipment. The present timetable targets commencement of the initial two-year arrangement in the second half of 2027.