Johnson Matthey PLC Johnson Matthey: Hydrogen Seminar
RNS Number : 3665Z
Johnson Matthey PLC
18 September 2020
Johnson Matthey: Enabling the transition to the hydrogen
Today, Johnson Matthey will hold an investor and analyst call in which
we will provide an insight into the role that hydrogen will play in tackling
climate change, our hydrogen business and its competitive positioning,
and the attractive growth opportunities we see in this area.
Commenting on the hydrogen seminar, Robert MacLeod, Chief Executive said:
"Johnson Matthey has been a leader in hydrogen activities for many years.
We have an established and profitable business across hydrogen production
and fuel cells, with leading technology, strong segment shares and a
long-standing customer base.
In Fuel Cells, we are very excited about the major growth opportunities
where we can apply our catalyst and pgm expertise to decarbonise transportation.
In hydrogen production, we are leveraging our capabilities in grey hydrogen
and methanol process technology and are commercialising blue hydrogen
through the HyNet and Acorn programmes. In green hydrogen production,
we are in testing with leading electrolyser players where we can further
utilise our proton exchange membrane technology.
I am confident that Johnson Matthey is strongly positioned to deliver
significant future growth across hydrogen as the global transition to
net zero accelerates."
Hydrogen will be key in achieving net zero and is a fast growing market
Addressing climate change remains an urgent priority. Across the globe
commitments to net zero are accelerating with 53% of the world's GDP
committing to net zero targets by 2050, up from 16% a year ago. As demand
for cleaner energy increases, achieving net zero will require fundamental
changes across our energy supply chain. Hydrogen will play a key role
as it helps to decarbonise energy and transportation, and the opportunity
is significant. We are seeing increasing momentum with recent policy
announcements in many countries and regions including Germany, France,
South Korea and the European Union, promoting greater adoption of hydrogen.
Johnson Matthey is strongly positioned to benefit in hydrogen
With the need to address climate change and the hydrogen market expected
to grow materially in the coming years, Johnson Matthey has an important
role to play in enabling the transition to the hydrogen economy.
We have been a leader in hydrogen for many years and already have an
established and profitable hydrogen business, with sales of c.GBP100
million annually across fuel cells and hydrogen production technologies.
Across the group, we have core science capabilities in pgm (platinum
group metal) catalysis and recycling, electrochemistry and surface chemistry
that can enable fuel cell and green hydrogen production solutions and
our process technology expertise underpins our success in blue hydrogen.
With our leading technology, strong segment shares and established customer
relationships, we are strongly positioned to benefit from this attractive
Fuel cells will play a key role in the decarbonisation of transportation
We have been active in fuel cells for over 20 years and have a profitable
business, with a strong position in the materials handling market as
well as the emerging transportation sector.
Our business has grown strongly, with a 38% sales CAGR since 2015. Our
customers include major global truck and automotive OEMs and leading
players in the important and fast growing Chinese market. We are positioned
across the fuel cell components value chain, which includes manufacture
of catalyst coated membranes (CCM) and membrane electrode assemblies
(MEA). Together with our pgm expertise, this enables us to deliver high
performance solutions, optimised for specific applications. We have established
manufacturing at scale and our additional capacity in the UK and China
will be completed by the end of 2020/21.
Looking forward, we expect that heavy duty trucks and automotive applications
will be a major opportunity and we are working on platforms due to launch
over the next few years. The addressable market for CCM supply into fuel
cell truck and automotive applications for Johnson Matthey is estimated
to be worth c.GBP1 billion per annum in 2030 and more than GBP10 billion
per annum in 2040(1).
Strong position in hydrogen production technologies
We have a strong presence across different hydrogen production technologies.
In grey hydrogen (production of hydrogen from natural gas), we have technology
for the supply of catalysts and a c.40% segment share(2).
In blue hydrogen (production of hydrogen from natural gas with carbon
capture), we have leading technology which is more efficient, with lower
capital intensity(3) and captures over 95% of produced carbon dioxide
at high pressure and purity, enabling easier transportation and storage.
Our technology is already being commercialised at scale and we are involved
with two high profile and world scale hydrogen projects in the UK - HyNet
and Acorn. Blue hydrogen will be critical in the transition to net zero
and our opportunity is primarily through the licensing of our technology
and the supply of engineering and process catalysts. The addressable
market for blue hydrogen for Johnson Matthey could be worth GBP1.5 billion
to GBP2 billion per annum in 2030 .
The opportunity in green hydrogen (production of hydrogen from electrolysis
of water using renewable energy) is founded on our proton exchange membrane
technology (PEM), our core competency in fuel cells and our expertise
in pgm catalysis and closed loop offerings. We are well positioned in
this space and currently testing with leading electrolyser players. The
addressable market for PEM technology for Johnson Matthey could be worth
GBP2 billion to GBP4 billion per annum in 2030 .
Both blue and green hydrogen production technologies will be critical
in the transition to net zero. With our established hydrogen business,
knowledge of the hydrogen market and our presence across different technologies
we are strongly positioned to benefit from the substantial growth expected
in this market.
1. Based on LMC, KGP, Johnson Matthey, McKinsey and OEM assumptions.
2. Based on Johnson Matthey data.
3. Compared to conventional steam methane reforming technology with carbon
capture and storage. Johnson Matthey Technol. Rev., 2020, 64, (3),
4. Based on total hydrogen demand (Hydrogen Council, "Hydrogen, Scaling
up" report, 2017); average plant size of 160kt p.a. (equivalent to
twice the size of HyNet project Phase 1). Assumes c.30% of the market
is blue hydrogen (Johnson Matthey, IEA, BP).
5. Assumes c.30% of the market is green hydrogen, of which the PEM share
is 30-60% (Johnson Matthey, IEA, BP).
Investor Relations Director of Investor Relations 020 7269 8241
Martin Dunwoodie Senior Investor Relations Manager 020 7269 8235
Louise Curran Investor Relations Manager 020 7269 8242
Media 020 7269 8407
Sally Jones Director of Corporate Relations 020 7353 4200
Simon Pilkington Tulchan Communications
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September 18, 2020 02:00 ET (06:00 GMT)
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