Metacon has signed an agreement to build a “Gigafactory” for the manufacture of its own electrolysis plants
Metacon AB (publ) has, through the wholly owned subsidiary Metacon Technology AB (Metacon Warrant AB and others), entered into an OEM license and manufacturing agreement with PERIC Hydrogen Technologies Co., Ltd. It is the first time in PERIC’s more than 60-year history that a similar agreement has been made. The agreement gives Metacon an exclusive right for a large number of countries in Europe to manufacture complete under its own brand electrolysis plants (Hydrogen Generation Systems, HGS) based on PERIC’s world-leading technology for pressurized alkaline electrolysis modules (stacks). Metacon is now investigating the conditions and financing possibilities for building a factory in Sweden or in another country within the EU. Under the right conditions, this could become the first factory of its kind in Sweden and within a few years one of the largest in Europe. Metacon initially plans for a production volume of up to 0.5 GW per year, which corresponds to 50 – 100 complete electrolysis plants based on 5 and 10 MW electrolysis modules respectively. In the next step, production is planned to be able to scale up to 1 GW per year and more. Metacon will evaluate various forms of financing for the new factory including national and EU support programs .
The agreement means a unique opportunity for Metacon to manufacture, quality-assure and sell its own electrolysis plants based on large pressurized electrolysis modules, which are in high demand by the market, not least in the industrial sector, under its own auspices and under its own brand. The possibility of meeting current and future market needs in Europe with local manufacturing as well as manufacturing under European standards and quality assurance is one of the driving factors behind the investment. PERIC belongs to a very small group of companies in the world that over many years have built up technology and industrial capability to be able to supply larger volumes of large electrolysis plants and electrolysis modules for the rapidly emerging needs of fossil-free green hydrogen. PERIC’s 5 MW electrolysis module has more than 10 years of operating data to lean on, which is one of the longest in the world for this size and makes it perhaps the most proven large-scale pressurized electrolysis module available.
PERIC has also launched a 10 MW electrolysis module, which is the largest in the world today. This is a significant competitive advantage, especially for customers with very large production needs such as in the markets for fossil-free steel, green fertilizer, green ammonia and electrofuels, as large economies of scale can be achieved. For example, this means that a 500 MW electrolysis plant can be built with 50 10 MW electrolysis modules instead of 100 5 MW modules. The importance of reducing the plant’s complexity becomes apparent when you consider that a 5 MW electrolysis module weighs just over 50 tons and a 10 MW module just over 70 tons. The electrolysis modules are also uniquely designed to be able to work together with irregular electricity production from renewable energy sources such as wind and solar power.
Through the agreement, Metacon will be able to build its own electrolysis plants under its own name and brand, initially with certain components from PERIC, including the electrolysis modules (stacks), which in a complete electrolysis plant are supplemented with Metacon’s own produced or purchased components. Metacon will implement the adaptations necessary to meet all European requirements and manufacturing standards and ensure that large parts of the electrolysis plants can be built with local components in order to maximize sustainability aspects and create a strong offer to the European market. The collaboration with PERIC and the opportunity to buy in core components from PERIC gives Metacon the conditions to quickly get started with manufacturing with, in this context, limited initial investments.
This agreement, which has been negotiated between the parties for an extended period of time, gives Metacon similar rights for the European market that are currently being discussed with PERIC under the MoU announced on November 23 regarding an OEM license to PERIC for the manufacture and sale of Metacon’s reformer- based hydrogen generators (HHG systems) for the Chinese market. Together, these agreements will create the conditions for a strong and long-term collaboration and incentives for both companies to market and sell each other’s products in their respective home markets.
The agreement complements Metacon’s strategy which aims to create a unique and world-leading technology portfolio consisting of our own products for all significant ways of producing fossil-free “green” hydrogen including reforming, where we previously own and develop other products for the production of the same green hydrogen independent of the electricity grid . Given the global context and importance that electrolysis has for large-scale industrial projects, the European market thus gains access to another local manufacturer and supplier of electrolysis plants and positions Metacon in a battle next to large and well-known European companies in the industry.
The market for electrolysis plants is expected to grow dramatically in the next few years, and according to the International Energy Agency (IEA), in order to reach the emission targets of greenhouse gases according to the Net Zero Scenario, 2021–2030, it is required that the annual production of electrolysis plants in the world increases from today’s approximately 11 GW to 184 GW for the year 2030. Today’s manufacturing capacity of approx. 4 GW per year in Europe is expected according to the IEA for the year 2030 to increase to approximately 25 GW per year, which based on the EU countries’ national hydrogen plans of an estimated need of 40 GW, is judged to be far below the real need for electrolysis plants. The Swedish investments in green steel, green fertilizer and electrofuels alone have a planned capacity requirement that amounts to a large proportion of the world’s current total production capacity. Since this so-called “supply-demand gap” continues to grow strongly and is expected to do so in the long term, the need for electrolysis plants will be far greater than the total manufacturing capacity.
Converted to a theoretical number of plants of 5 MW, about 8,000 electrolysis plants need to be manufactured per year to meet the targets for the year 2030 in the European hydrogen strategies (about 40 GW per year). With a current price of approximately SEK 40 – 50 million per 5 MW production facility depending on configuration, the value of the addressable forecasted market amounts to more than SEK 400 billion by the year 2030. If Metacon can achieve a production level of 1 GW in 4–5 year term, this means that Metacon can build 100 – 200 electrolysis plants per year depending on size, which at that time should correspond to 1.5–3% of the addressable European market.
Probes have been made with larger stakeholders who have been positive about buying Swedish or EU-made electrolysis plants. Metacon will evaluate the possibility of obtaining financing through national and EU support programs, and will also evaluate other forms of financing for the construction of the new factory.
In addition to its own manufacturing, Metacon will continue to be a reseller of PERIC’s own electrolysis plants on the European market, which ensures continued deliveries without interruption and that customers can freely choose manufacturers.
The work that is now starting involves investigating the conditions in detail and developing plans to be able to start production. This means, among other things, site selection and finding a suitable factory premises or land for establishment, access to labor and access to good communications, logistics and sea transport as well as the possibility to expand.
”With this, Metacon takes a very important step towards being able to achieve our vision of becoming one of the leading European companies in the hydrogen sector. With our own European production based on what is perhaps the world’s most proven large-scale electrolysis technology from PERIC, we also complement our portfolio of other solutions in catalytic reforming, making it altogether unique. If the plans fall into place as planned, the company will also be able to move up into another division in terms of size, finances and turnover .”, commented Christer Wikner, President and CEO, Metacon.
Mr. Yuguan Zhang, CEO, PERIC Hydrogen Technologies commented: “It is with pleasure that I can state that PERIC has now found a partner in Metacon who can establish European production based on PERIC’s leading technology. PERIC is today the market leader in the largest markets in Asia such as China and India and with this collaboration will be able to participate more quickly and with greater force in the European market in a way that is adapted to local requirements and expectations. We are very much looking forward to the continued collaboration with Metacon. ”
For further information, contact Christer Wikner, on phone 0707-647389 or e-mail info@metacon.com
This information is information that Metacon AB (publ) is obliged to make public according to the EU’s market abuse regulation. The information was submitted, through the care of the above contact person, for publication on January 25, 2024 at 10:45 CET.
About Metacon AB (publ)
Metacon AB (publ) develops and manufactures energy systems for the production of fossil-free “green” hydrogen. The products within the Reforming business area are, among other things, based on a patented technology that through so-called catalytic steam reforming of biogas or other hydrocarbons generates hydrogen gas. The development of Metacon’s reforming products is done within the wholly owned subsidiary Metacon S.A in Patras, Greece. The business is focused on catalytic process chemistry and advanced reformers for highly efficient hydrogen production.
Metacon also offers complete electrolysis plants and integrated refueling stations for green hydrogen, a large and globally growing area for small and large scale production of green hydrogen. Electrolysis is a process where you drive a chemical reaction to split water by adding electricity. If the electricity used is non-fossil, the hydrogen will also be fossil-free and climate-neutral. Green hydrogen can be used in, among other things, the transport sector, the basic industry and the real estate sector, with a better environment and climate as a result. www.metacon.com
About PERIC Hydrogen Technologies
PERIC Hydrogen Technologies Co., Ltd. (PERIC) is a wholly owned subsidiary of the Purification Equipment Research Institute of CSSC. PERIC is headquartered in Handan City, Hebei Province. PERIC is mainly engaged in research, design and manufacture of hydrogen generation systems, as well as research and development of hydrogen as an energy carrier. Currently, PERIC Hydrogen Technologies Co., Ltd. 360 professional technicians, 6 commissioning and processing workshops, with a total area of 21,500 square meters. The annual production capacity is approximately 350 hydrogen gas generators of the alkaline type and 120 hydrogen gas generators of the PEM type, and significant scale-up projects of the production capacity are underway.
Until now, PERIC has produced and sold more than 1000 sets of electrolysis hydrogen generation systems and more than 400 sets of hydrogen purification systems, PSA Hydrogen Rich gas purification systems and methanol cracking hydrogen generation systems, with a cumulative production value of more than 3 billion yuan. PERIC has exported to more than 30 countries and regions such as Europe, North America, Middle East, East Asia, South Asia, Southeast Asia and Africa. After more than 60 years of sustained and stable development, a complete range of hydrogen equipment has been built up.
For more information, see:
www.metacon.com | X: @Metaconab | LinkedIn: www.linkedin.com/company/metaconab
