TPG.L Regulatory News (TPG)

8 June 2020

TP Group plc

("TP Group", "the "Company" or the "Group")

First production of ultra-high purity oxygen using new modular system

TP Group (AIM: TPG), the providers of mission-critical solutions for a more secure world, is pleased to provide an update on its development programme to build modular gas production equipment announced 16 April 2020.

TP Group engineers at the Portsmouth technology centre have completed the first phase of the project by commissioning a single modular system (the "System") that produced both oxygen and hydrogen at ultra-high purity levels.

Under trial conditions, the System produced 5 normal cubic metres of oxygen from just 10 litres of water each hour over a ten-hour test period. This would equate to approximately 6 litres of liquid oxygen per hour. It also produced approximately one kilogramme of fuel-cell grade hydrogen per hour at a pressure of 10 bar. The System was able to produce gas within a minute of startup and with an intelligent built-in control system was able to run automatically throughout the test.

This trial has met all the objectives of the first phase of the programme and TP Group is already engaged with third parties to specify field-deployable systems for the next phase of development.

The Group believes that there are many potential applications for the Systems, although it is not expected that this programme will have a material impact on the financial performance of the Group this year. The ultra-high purity oxygen product has applications in medical facilities, analysis and testing laboratories, nuclear energy, space, semiconductors and other ultra-clean manufacturing processes. Fuel-cell grade hydrogen has widespread potential in the emerging renewable energy field. Gases like this are typically available in bottled form and this system would provide a self-contained and local source that is independent of the external supply chain.

Phil Cartmell, Chief Executive Officer of TP Group, commented:

"It is very encouraging to see such positive results so quickly from this development programme. Our Portsmouth business has decades of experience in building highly reliable electrolyser-based solutions for demanding applications. In just six weeks they have risen to an initial challenge from the COVID-19 outbreak to successfully test a field-deployable system capable of supplying medical-grade oxygen on demand. They have taken existing equipment available within the technology centre and, with minimal external expense, configure it in new ways to prove that such systems can be built and perform.

"Their experience in building rugged systems that can be deployed and commissioned quickly in remote locations opens up many new market opportunities. In addition, the ultra-high purity of the gases produced offers the potential for the Group to transfer these proven technologies and expand into new market sectors. The potential of this development is a very exciting addition to the future prospects of TP Group."

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Notes to Editors

TP Group delivers complex equipment, software and services for mission-, business- and safety critical applications in defence, space, intelligence & security and energy sectors. With more than 400 people in 6 European countries, it serves global customers through long-term contracts. The Group's shares have been traded on AIM since July 2001.