French electrolyser maker McPhy has said that without projects being finalised and further public funding, it only has enough cash to finance its operations until “the course of Q3 2025.”
It comes as the firm reported FY 2024 revenues of €13.1m ($16.7m) – down 30% on 2023.
McPhy attributed the decline primarily to the lack of revenue recognition from the 20MW Djewels green hydrogen plant in the Netherlands, as well as deductions related to compensation for the termination of historical refuelling station contracts.
Despite the revenue decline, McPhy saw a 115% increase in orders from 2023, reaching €28.1m ($29.3m). This growth expanded its backlog by 25%, bringing it to €29.8m ($31.1m).
However, throughout 2024, McPhy burned through €24m ($25.1m) in cash, reducing its cash position to around €39m ($40.7m) at the end of the year.
McPhy says this means that without revenue recognition for the Djewels project, the receipt of €13m ($13.6m) in ICPEI funding, and the remaining €11m ($11.5m) payment for its refuelling business sale to Atawey, it could run out of cash by the end of Q3 2025.
However, if McPhy does not receive payments from Atawey, its available funds would last only until the end of Q2 2025.
“This situation generates significant uncertainty regarding the group’s ability to continue as a going concern,” McPhy’s results said.
McPhy added that it is exploring solutions to “extend its cash horizon and support its operational requirements.”
The update comes a month after the company slashed its FY 2024 revenue guidance to around €11m from €18-22m ($18.8-22.9m), citing project delays and the scrapping of legacy refuelling developments.
However, McPhy has also said the downward revision of its revenues came from the “partial termination of a legacy mobility contract to supply stations.”
In July, Atawey acquired McPhy’s hydrogen refuelling business, along with a network of 70 stations in operation, under construction or in planning, for €12m ($12.2m), as it dedicated its focus to electrolyser manufacturing.
Read more:Atawey secures McPhy’s HRS network of 70 stations
As part of the deal, however, McPhy contracts relating to projects in progress on July 16, 2024, remained the responsibility of McPhy.
The development follows a similar path to other hydrogen technology players, which have been taking drastic steps to survive amid project delays and dwindling financing options.
PART ONE | Hydrogen electrolyser consolidation: The wave reshaping the industry
There is a black hole of consolidation out there, beginning to suck all things related to hydrogen electrolyser value chains into it.
Horizontal and vertical integration within electrolyser production and deployment will accelerate towards the end of this decade. When several of the larger dominoes topple in rapid succession, it will rapidly escalate into a race to the finish line.
We may find that we are 80% through this consolidation play by 2030…
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