Johnson Matthey PLC (LSE:JMAT) has signed a strategic partnership with Germany's Enapter, a specialist in AEM electrolysis of hydrogen, that it believes will help drive down the cost of green hydrogen.
The FTSE 100 group will also invest €20mln in Enapter for a 4.31% stake.
The partnership will include collaborating on the joint development of advanced components for Enapter's anion exchange membrane (AEM) electrolysis stacks, with JMAT using its expertise in catalysis to supply specialised catalysts.
AEM technology, which is the least mature of the electrolyser technologies but also is being developed by London-listed AFC Energy and Germany's Evonik.
AEM attempts to combine the best of both alkaline and more common polymer membrane (PEM) approaches and JAMT said Enapter's technology is "highly efficient", using standardised and modular AEM electrolysers that allow green hydrogen production "at lower associated costs for various applications".
Intended uses include electricity storage, production of synthetic gas or methane, hydrogen refuelling and e-fuels, as well as for industry.
Analyst Adam Collins at broker Liberum has previously explained Enapter's technology thus: "Instead of using a highly corrosive high concentration mixture of potassium hydroxide for the electrolyte...the AEM system uses only 1% concentration and only on the anode side with cathode being moisture free. Risks of oxygen and hydrogen crossover, which limit efficiency and hydrogen purity... are mitigated by use of a polymer membrane and differential pressures for hydrogen and oxygen. There is no need for expensive PGMs for catalysts and titanium for bipolar plates as needed in PEM systems."
However, he noted that while designed to be more efficient than alkaline electrolysers, "AEM systems still have significantly lower water splitting capability than PEM due to the decreasing conductivity of the membrane and its sensitivity to carbon dioxide poisoning".
Johnson Matthey said both parties will jointly investigate opportunities for the recycling of production scraps and components from end-of-life products.
Chief executive Liam Condon said: "Our ambition is to become the global leader in green hydrogen technologies and to diversify our technology base in this booming market, both in the electrolyser and fuel cell markets. This strategic partnership is at the heart of our strategy as we focus our resources on growth areas targeted at climate change solutions."
Enapter boss Sebastian-Justus Schmidt added said the partnership "recognises Johnson Matthey's pioneering work in material chemistry and its industrialisation, and enables us to continue enhancing the efficiency and performance of our products".