30 April 2024

Hydrogen Future Industries plc

("HFI" or the "Company")

Interim Results for the Six-Month Period Ended 31 January 2024

Hydrogen Future Industries plc (AQSE: HFI), a developer of a proprietary wind-based green hydrogen production system featuring an advanced aerodynamic wind turbine and a high-performance electrolyser, presents its unaudited interim results for the six-month period ended 31 January 2024 (the "Period").

Period Highlights

·    Intermittent testing of the 1-metre diameter wind turbine prototype and Anion Exchange Membrane Water Electrolyser was conducted throughout the Period

o  Data collected from wind turbine testing to date have been consistent with those collected in the 15,000 hours of computational fluid dynamics and wind tunnel testing and suggest an increase in energy production of upwards of 270% compared to open rotor wind turbines

o  Electrolyser test cells demonstrated exceptional efficiency of up to 97%

·    Ongoing preparation during the Period for a feasibility study to demonstrate the production of green hydrogen from contaminated water created during mining processes

o  Objective to demonstrate the technology can produce green hydrogen for use on site at $2 per kg, which equates to an electrical energy supply of approximately $0.12 per kilowatt-hour

·    Announced the appointment of Neil Ritson, an energy sector professional with a career spanning over 40 years, as Non-Executive Chairman in September 2023

Neil Ritson, Non-Executive Chairman, commented:

"HFI's 1-metre prototype wind turbine demonstrated exceptional durability and performance in the Period and is now being prepared for its next phase of energy performance trials and objective third-party assessment.

In parallel, testing of the Company's novel electrolyser achieved exceptional efficiency of up to 97% during the Period and a strategy is underway to expedite the development of a commercial scale electrolyser.

These two HFI technologies are required for the successful generation of clean and affordable energy from green hydrogen, and we are looking forward to making further progress towards this goal in the remainder of the year."

Enquiries:

Inside Information

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company accept responsibility for the contents of this announcement.

About Hydrogen Future Industries

Hydrogen Future Industries was established to invest in projects and companies focused on the Hydrogen Economy. We are developing a proprietary wind-based hydrogen production system, incorporating hydrogen compression and storage. Hydrogen Future Industries is at the forefront of green hydrogen production with its integrated system that marries an advanced ducted wind turbine with a state-of-the-art Anion Exchange Membrane Water Electrolyser (AEMWE). This innovative pairing is designed to optimise renewable energy for the efficient production of hydrogen.

 Click here for more information about Hydrogen Future Industries.

About HFI wind turbine technology

The HFI wind turbine is at TRL (Technology Readiness Level) 6-7, showcasing an advanced design with superior aerodynamics and rotor blade technology that generates three times the energy of a traditional open rotor design. The aim is to generate energy at a cost below $30/MWh and a unit CAPEX of $700,000/MW. This innovation represents a smaller, quieter, and more efficient alternative to existing wind energy generation technology. The turbine's unique features include a smart hydraulic drive that improves efficiency and reduces the cost of energy production, the ability to generate energy over a broader range of wind speeds, and versatile energy output in hydraulic, DC, or AC forms without the need for additional AC to DC rectifiers for hydrogen production. Significantly, the turbine can be raised and lowered for optimal wind capture, reducing maintenance and installation costs, as servicing can be performed at ground level.

About HFI Anion Exchange Membrane Water Electrolyser (AEMWE) technology

At TRL 4-5, the HFI Anion Exchange Membrane Water Electrolyser (AEMWE) presents a step forward in power efficiency, longevity, and cost-reduction for green hydrogen production. Testing has confirmed a cell efficiency of 97%, notably higher than the 80-85% of rival technologies. Constructed without platinum group metal catalysts, the AEMWE utilises more affordable and accessible materials, resulting in a projected cost that is 50% lower per kW than the PEM electrolyser. It is designed to deliver high efficiency even with variable energy supply typical of renewable sources, and it features a unique system where individual cells can be replaced without halting hydrogen production. The AEMWE's catalysts are chemically attached to the electrodes, preventing wash-off and ensuring durability. The ongoing patent applications aim to protect the unique intellectual property developed around this technology.

Visit our website: www.hydrogenfutureindustries.com

Follow us on social media:

LinkedIn: @Hydrogen Future Industries

X (formerly Twitter): @HydrogenFI

Caution Regarding Forward Looking Statements

Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company's current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not a guarantee of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Company's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The Company cautions security holders and prospective security holders not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.

Chairman's Statement

Introduction

I am pleased to present the unaudited interim results for the period to 31 January 2024 (the "Period"). The primary activities of the Company during the Period were the ongoing testing of its wind turbine and electrolyser technologies to demonstrate that the technologies, when combined, can produce green hydrogen at $2 per kg. In this regard, HFI began collaborating in the Period with a major mining company on a working mine site to undertake a feasibility study.

Development activities

Wind turbine development & mining sector feasibility study

Intermittent testing of the 1-metre diameter wind turbine prototype over extended periods was conducted throughout the Period in Montana, USA. Initial data are consistent with those collected in the 15,000 hours of computational fluid dynamics and wind tunnel testing and suggest an increase in energy production of upwards of 270% compared to open rotor wind turbines.

The 1-metre prototype wind turbine has demonstrated exceptional durability and performance in the face of some of the harshest environmental conditions in Montana. With temperatures falling to approximately -50° Celsius, and wind gusts reaching 70 mph, the turbine is now undergoing a comprehensive overhaul. The strip down and mechanical analysis of the turbine aims to enhance the turbine through the installation of cutting-edge carbon fibre rotor blades and a new yaw control system designed and engineered by the HFI development team. Accompanying these improvements is a sophisticated array of telemetry equipment, for the energy performance trials and an objective third-party assessment.

The test site in Montana is adjacent to a tailings facility operated by a major mining company. The Company has agreed to collaborate on a feasibility study, the first stage of which includes the data collection from the prototype wind turbine testing detailed above and the sharing of mine site processing samples. The objective of the feasibility study is to demonstrate that the technology can produce green hydrogen for use on site at $2 per kg, which equates to an electrical energy supply cost of approximately $0.12 per kilowatt-hour. The full complement of HFI technologies is required for the successful generation of clean and affordable energy from green hydrogen in remote mining locations. Discussions are underway with key engineering groups to scope services and equipment to demonstrate the viability of HFI's system on mine sites.

Electrolyser development

Concept testing of the Company's novel electrolyser continued throughout the Period in California, USA, led by quantum-physicist, Dr Nicholas Blake, a consultant to HFI. The series of tests undertaken in the Period achieved an exceptional efficiency of up to 97%.

The Company is now undertaking to expedite the development of its inaugural commercial scale electrolyser and develop new intellectual property and an assembly of electrodes, whilst also advancing efficiency leaps and cost-reduction strategies. Notably, HFI's electrodes are evolving to operate effectively without the need for expensive platinum group metals, marking a significant stride towards sustainable cost efficiencies which is one of the project's primary objectives.

University Collaboration

We were delighted to announce on 7 December 2023 that we had signed a Memorandum of Understanding ("MoU") with the University of Bristol ("UoB") to collaborate to advance respective technologies, secure funding for joint research and development, and accelerate commercial opportunities. UoB is a leading research university with several active research and development projects related to hydrogen. In particular, UoB has identified HFI's technology as having synergies with its Hydrogen Depleted Uranium Storage project, a unique hydrogen storage system designed to help balance fluctuations in the supply of energy from renewable energy sources, such as wind and solar, as well as provide nuclear powerplant sites with a load following capability.

MoU with Australian renewable energy microgrid partner

In January 2024, HFI signed an MoU with an Australian renewable energy microgrid partner, Capricorn Clean Energy Limited. Considering Australia's ambitions to become a global hydrogen leader, the country has been identified by HFI as a target market for the initial deployment of its patented green hydrogen production system. The MoU aims to facilitate the identification of local project and partnering opportunities, particularly those related to the Australian Renewable Energy Agency's ("ARENA") Regional Microgrids Programme ("RMP") established in August 2023 to support the development and deployment of renewable energy microgrids. ARENA has committed up to A$125 million in funding toward the RMP, which is split into two streams as follows: a) Regional Australia Microgrid Pilots; and b) First Nations Community Microgrids.

We believe the Company's energy system is well placed to provide on-demand economical green energy through microgrids across Australia.

Corporate activities

Board Changes

In September 2023, I joined the Board as Non-Executive Chairman. I have been an energy sector professional for over 40 years, including 20 years in various technical and managerial positions with British Petroleum, and I am encouraged by what I am seeing at HFI. When you pair the performance of our wind turbine with that of our novel electrolyser in development, the potential for cheap hydrogen production at scale is incredibly exciting and could change the clean energy landscape as we know it.

In conjunction with my appointment, David Ormerod stepped down as a Non-Executive Director to focus on his other commitments in Australia and Daniel Maling transitioned from Executive Chairman to the role of Executive Director (now Chief Commercial Officer) enabling him to devote more time to driving the commercial and business development elements of the business strategy.

Tower Group Investment

Further to the Company's investment for a 20% stake in Tower Green Holdings Limited ("Tower") announced on 16 January 2023, Tower has continued to make significant progress in building its position as the hydrogen infrastructure developer for Southwest England. During the Period, Tower attracted widespread media coverage for its Appledore project, which seeks to develop onshore hydrogen production and refuelling infrastructure in north Devon to supply offshore wind support vessels. Tower will continue to develop these proposals throughout 2024 and its position as the provider of maritime hydrogen refuelling projects in support of offshore wind and other clean maritime operations in the region.

Tower has also built a pipeline of other infrastructure projects throughout the southwest, including a road mobility project in Devon, with real estate and partnerships secured to supply hydrogen directly to industrial off-takers and to the strategic road network. Further project announcements are expected to be made throughout the year.

Financial Review

Financial highlights for the Group for the six months ended 31 January 2024 are stated below:

·    Cash and cash equivalents at period end were approximately £263,000

·    Loss before taxation for the period was approximately £432,000

·    Administrative expenses down 54% from the corresponding period to £94,000

·    The Group held net assets at period end of approximately £624,000

Subsequent to Period end, the Company completed three equity placements totalling £612,000. The proceeds from the placements will further the development of HFI's key technologies and advance the mining sector feasibility study.

Conclusion

HFI's 1-metre prototype wind turbine has demonstrated exceptional durability and performance and is now being prepared for its next phase of energy performance trials and an objective third-party assessment.

In parallel, testing of the Company's novel electrolyser achieved exceptional efficiency of up to 97% and a programme is now underway to expedite the development of a commercial scale electrolyser.

These two HFI technologies are required for the successful generation of clean and affordable energy from green hydrogen, and we are looking forward to making further progress towards this goal in the remainder of the year.

Neil Ritson

Non-Executive Chairman

29 April 2024