The agreement will allow Peregrine to scale its novel electrolyzer technology, which simultaneously produces clean hydrogen and sulfuric acid.
Peregrine Hydrogen, a leader in innovative hydrogen technology, has announced a strategic partnership with OCP Group, a global giant in plant nutrition and phosphate-based fertilizers. The companies have signed a Letter of Intent (LOI) that secures a critical investment from OCP Group to fund the scale-up of Peregrine’s unique hydrogen technology. In addition to the funding, the LOI includes an offtake agreement, committing OCP Group to purchase the products generated by Peregrine’s system.
This collaboration marks a significant step toward making clean hydrogen economically viable for commodity industries. Peregrine's proprietary electrolyzer technology is a game-changer because it addresses a key challenge in green technology adoption: cost. Unlike traditional methods that produce only hydrogen, Peregrine's system co-produces two valuable commodities: clean hydrogen and sulfuric acid. This dual-production approach creates a second revenue stream, significantly lowering the overall cost of the clean hydrogen and making it competitive with conventional, fossil fuel-based production methods.
For OCP Group, the partnership aligns with its ambitious decarbonization strategy. As the world’s largest producer of phosphate-based fertilizers, OCP Group relies on both hydrogen and sulfuric acid for its operations. By integrating Peregrine's technology, the company can secure a supply of clean hydrogen while also producing sulfuric acid, a key input in its phosphate processing, at a lower cost. This move supports OCP's goal of achieving full carbon neutrality by 2040 and sourcing all its industrial electricity from renewables by 2027.
"Our technology is designed to deliver clean hydrogen at a significantly lower cost than what is currently available," said Matt Shaner, CTO of Peregrine Hydrogen. "This partnership with OCP Group provides the essential support and market access we need to deploy our technology at scale and accelerate decarbonization in sectors where cost has been a major barrier."
The partnership is an important endorsement of Peregrine's technology, demonstrating a clear demand for its unique solution. While the initial focus is on the fertilizer industry, Peregrine Hydrogen has broader ambitions. According to CEO Friðrik Lárusson, the company’s co-production technology has applications in a "plethora of industries" beyond fertilizer, including metals, oil, and natural gas. The company plans to expand its work in these sectors, hinting at future announcements.
This deal signals a promising shift in the green hydrogen market, where new technologies are finding ways to overcome cost barriers by creating valuable byproducts.
