Metacon announced that it has signed a supplementary agreement with PERIC, granting Metacon the rights to manufacture the central modules in electrolysis systems. In our view, if manufacturing and sales prove successful, this could help establish a more stable, long-term revenue stream beyond the one-off sales of new electrolysis systems. However, while the supplementary agreement supports the foundation of our estimates, it does not necessitate immediate revisions.

Strengthening the existing license agreement

In early 2024, Metacon signed an exclusive license agreement with PERIC, allowing it to manufacture electrolysis systems under its own name and brand while leveraging PERIC’s technology. The new supplementary agreement expands on this by also granting Metacon the rights to manufacture the "stacks", the core modules within electrolysis systems responsible for splitting water into oxygen and hydrogen. Additionally, the agreement extends the first phase of the overall license from five to eight years from the start of production.

Supplementary agreement opens potential for aftermarket revenues

The commercial logic behind Metacon’s existing agreement is to leverage PERIC’s proven technology and manufacturing methods to produce locally made electrolyzers for the European market. The goal is to manufacture these systems at a lower cost than other European-made alternatives while meeting the required quality and regulatory standards.

In our view, this supplementary agreement could strengthen Metacon’s business model by introducing a recurring aftermarket revenue stream. As Metacon will now also produce the stacks, components that require periodic service or replacement, which could create a more predictable long-term revenue source beyond the initial sale of electrolysis systems. While this agreement supports our estimates, it does not create immediate pressure to change estimates due to the early stage of the company's European Gigafactory.

In a broader context, Metacon’s investment case remains centered on scaling up its business to improve revenue visibility and achieve positive cash flow. In practical terms, this means demonstrating a sustained order intake and ensuring consistent order-to-delivery conversion. In our view, a deeper collaboration with a reputable partner like PERIC adds credibility with potential customers and can help Metacon achieve a broader commercial scale. This was evident in the Motor Oil order, which we believe was heavily influenced by Metacon's partnership with PERIC.