TP Group (AIM: TPG ), has commissioned a development programme to build modular gas production equipment in response to rapidly emerging requirements.
The programme was initiated in late 2019, but recent global events have highlighted challenges in logistics, contingency planning, and flexibility in the supply of medical gases leading the Company to accelerate the programme.
The programme, funded by existing cash resources, will produce modular systems for on-site gas production and consumption at hospitals and other facilities. Phase 1 of the programme aims to produce a demonstration system that can be tested for suitability and performance. The next phase will see consultation with customers and partners with development activities commencing in 2H20.
In the longer term the programme will contribute to longer-term sustainability goals reducing carbon usage in both production and transportation. This is particularly key in the UK healthcare sector, where the National Health Service produces roughly five per cent of the UK's greenhouse gasses, and the NHS Sustainable Development Plan aims to eliminate 80 per cent of the 1990 baseline carbon emissions by 2050.
The Company brings over 40 years of innovative gas production using electrolysis to the programme.
Shares in TP Group improved 4% on the back of the news.
Phil Cartmell, Chief Executive Officer of TP Group, commented: "I am very pleased that in these challenging times, the TP Group team has been able to look creatively at both our technologies and capabilities and sought to apply them in new ways that are relevant to the current challenges we face."
"When proven, we anticipate these systems will be able to produce medical and other gases locally at the point of consumption, potentially reducing carbon usage in both production and transportation."
"We have many years of heritage with these technologies and have been highly successful in deploying them across a range of challenging and mission critical environments."