Johnson Matthey’s 2025 CCUS Pivot: Why Divesting Blue Hydrogen for a Catalyst-First Strategy is a Masterstroke
Industry Adoption: Johnson Matthey’s Strategic Shift from Integrated Projects to High-Value Catalyst Supplier
Between 2021 and 2024, Johnson Matthey (JM) positioned itself as a central technology licensor for the burgeoning blue hydrogen economy. The company’s strategy centered on its LCH™ technology, an autothermal reforming (ATR) process capable of up to 99% carbon capture. This led to significant commercial traction, with JM’s technology being selected for cornerstone UK decarbonization projects like bp’s H2Teesside, Equinor’s H2H Saltend, and Kellas Midstream’s H2NorthEast. During this period, JM pursued an integrated solutions model, forming deep partnerships with EPCs and carbon capture specialists like Honeywell and 8 Rivers to offer end-to-end project technology packages. The aim was to capture a substantial part of the value chain in large-scale, capital-intensive industrial decarbonization hubs. Concurrently, its catalyst technologies for sustainable aviation fuel (SAF) and methanol, such as the FT CANS™ and methanol synthesis tech, secured wins in projects like DG Fuels’ Louisiana plant and Sweden’s Project Air, but the strategic emphasis remained on the holistic LCH™-based hydrogen offering.
The year 2025 marked a radical and decisive inflection point. In May, Johnson Matthey announced the sale of its entire Catalyst Technologies business, including the flagship LCH™ blue hydrogen technology, to Honeywell for £1.8 billion in cash. This move was not a retreat but a strategic masterstroke, pivoting the company away from the risks and capital intensity of large-scale project development. The change is stark: JM has transformed from a primary licensor of integrated blue hydrogen plants to a more agile and focused “arms dealer” for the energy transition. The new strategy leverages its core competency in high-performance catalysis. This is immediately evident in its post-divestment commercial activity. Its eMERALD™ technology, which converts CO₂ to e-methanol, was selected for Reolum’s massive 140,000 tons-per-year plant in Spain. Similarly, its FT CANS™ technology, co-developed with bp, was chosen for USA BioEnergy’s $2.8 billion SAF biorefinery. This pattern reveals a strategic shift from lumpy, project-based revenue streams to a more scalable and potentially higher-margin model of supplying critical, consumable catalysts to a diverse and growing global portfolio of Carbon Capture and Utilization (CCU) projects.
Table: Johnson Matthey’s Key Investments & Divestments in CCUS (2025 – Present)
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| Sale of Catalyst Technologies | May 2025 | Agreed to sell the entire Catalyst Technologies business, including its LCH™ blue hydrogen technology, to Honeywell for £1.8 billion. This strategic divestment reshapes JM into a more focused business centered on PGM services and high-value catalyst supply. | Johnson Matthey is selling its catalyst business to … |
| Hydrogen Internal Combustion Engine (H2ICE) Facility | 2025 | Opened its first testing facility for hydrogen-powered engines in Gothenburg, Sweden. This investment supports the development of after-treatment catalysts, reinforcing its focus on supplying components for hydrogen applications rather than hydrogen production itself. | Johnson Matthey opens its first H2ICE facility in Gothenburg |
| HyNet CCUS Project | Ongoing | As a key technology provider (prior to the sale), JM was involved in the government-backed HyNet North West project, which received initial phase funding of £7.48 million. This highlights JM’s legacy involvement in foundational UK CCUS infrastructure. | Industrial Fuel Switching and Hydrogen Supply |
Table: Johnson Matthey’s Strategic Partnerships in CCUS (2021 – Present)
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| Honeywell, GIDARA Energy, SAMSUNG E&A | June 2025 | Joined a technology alliance to offer an end-to-end solution for waste-to-SAF production. JM provides its Fischer-Tropsch expertise, positioning itself as a key technology provider within a broader consortium, post-divestment. | Honeywell, Johnson Matthey, Gidara Energy and Samsung … |
| Oxylus Energy | May 2025 | Collaborating on a DOE-funded pilot project to convert CO₂ into chemical products. This partnership aligns with JM’s new focus on enabling innovative CCU pathways through its catalysis expertise. | Carbon to Value Initiative’s Year 4 Startups Turn … |
| Carbon Iceland | March 2025 | Signed an MOU to accelerate sustainable methanol production, combining JM’s catalyst and process technology with Carbon Iceland’s green methanol project development plans. | Carbon Iceland and Johnson Matthey Partner to Scale … |
| 8 Rivers Capital | March 2025 | Signed an LOI to combine JM’s LCH™ technology with 8 Rivers’ project expertise for clean fuel projects. This agreement occurred just before the announcement of the LCH™ technology sale. | 13 Types of Commercial Agreements Shaping Climate Tech |
| bp (FT CANS™) | Ongoing | Ongoing partnership to license their jointly developed FT CANS™ technology for converting biomass and waste into SAF, central to JM’s refined strategy in renewable fuels. | What Is BP Doing for Sustainability? Key Initiatives and … |
| Noya | Oct 2024 | Partnered with DAC startup Noya to scale up the manufacturing of its proprietary sorbents, marking a strategic entry into the carbon removal sector beyond industrial point-source capture. | Johnson Matthey and Noya sign agreement aiming to ‘shift … |
| Honeywell | Dec 2022 | Initial strategic partnership to offer an integrated solution combining JM’s LCH™ with Honeywell’s carbon capture technology, laying the groundwork for the eventual acquisition. | Johnson Matthey and Honeywell partner to advance lower … |
Geography: Johnson Matthey’s Global Pivot from UK Hydrogen to Worldwide CCU Enablement
Between 2021 and 2024, Johnson Matthey’s CCUS activities were geographically concentrated in the United Kingdom’s industrial clusters, particularly Teesside and the Humber. This was a direct result of its strategy to deploy the LCH™ blue hydrogen technology in government-supported decarbonization hubs. Key project selections, including H2Teesside (bp), H2H Saltend (Equinor), and H2NorthEast (Kellas Midstream), anchored its presence firmly in the UK’s emerging hydrogen economy. While projects in other regions existed, such as the Project Air initiative in Sweden and the DG Fuels SAF plant in Louisiana, USA, the strategic and commercial center of gravity was undeniably the UK’s large-scale blue hydrogen ambitions.
From 2025, following the divestment of its blue hydrogen business, JM’s geographic footprint has undergone a significant expansion and diversification. The focus has shifted from a UK-centric model to a global, application-driven approach. Spain has emerged as a key market with the selection of JM’s eMERALD™ technology for Reolum’s 140,000-ton e-methanol plant. The US market presence has been reinforced and refocused on high-value products, evidenced by the selection of its FT CANS™ technology for USA BioEnergy’s 65-million-gallon SAF facility in Texas. Furthermore, a new partnership with Carbon Iceland to scale sustainable methanol production adds another strategic European geography. This geographic broadening reflects JM’s pivot to becoming a global supplier of specialized catalysts for the fast-growing e-fuels and SAF markets, targeting regions with strong renewable energy resources and demand for decarbonizing transport sectors like shipping and aviation.
Technology Maturity: Johnson Matthey’s Evolution from Project Licensor to Scaled Catalyst Provider
In the 2021–2024 period, Johnson Matthey successfully advanced its LCH™ technology from a proven concept to a commercially selected solution for gigawatt-scale, pre-FID (Final Investment Decision) blue hydrogen projects. The licensing agreements with bp, Equinor, and Kellas Midstream represented a critical commercial validation phase, demonstrating market confidence in the technology’s high-efficiency carbon capture capabilities (up to 99%). During this time, other technologies in its portfolio, like the bp co-developed FT CANS™ and its CO₂-to-methanol processes, were also moving towards commercialization with selections in projects like DG Fuels and Project Air. However, the corporate narrative and strategic thrust were overwhelmingly focused on marketing the integrated LCH™ system as the cornerstone of industrial decarbonization.
The period from 2025 to today marks a clear shift in technology maturity and focus. The sale of the LCH™ technology to Honeywell signals its transition to a fully commercialized, bankable asset now being scaled by a major industrial player. For Johnson Matthey, this divestment has sharpened its focus onto scaling its other mature technologies. The eMERALD™ (CO₂ to methanol) and FT CANS™ (syngas to SAF) technologies have moved decisively into large-scale commercial deployment. Their selection for the 140,000 tons/year Reolum plant and the 65 million gallons/year USA BioEnergy facility, respectively, validates them as go-to solutions for the burgeoning e-fuels market. JM has effectively transitioned from proving out a single, complex integrated system to monetizing a portfolio of high-readiness, high-value catalyst technologies. The launch of its new Reverse Water Gas Shift (RWGS) technology in October 2025 further underscores this refined strategy, innovating on key process steps to enhance the efficiency of the CCU-to-fuels value chain.
Table: SWOT Analysis of Johnson Matthey’s CCUS Strategy Evolution
| SWOT Category | 2021 – 2024 | 2025 – Today | What Changed / Resolved / Validated |
|---|---|---|---|
| Strengths | Deep expertise in catalysis and process technology, demonstrated by the development of the highly efficient LCH™ technology. Strong partnerships with industrial majors like bp and Equinor for large-scale project deployment. | Core competency in high-performance catalyst manufacturing for high-value applications (e-methanol, SAF). Established technology provider status, evidenced by FT CANS™ and eMERALD™ selections. Strong balance sheet following £1.8bn cash injection. | The 2025 divestment validated the value of JM’s LCH™ technology (£1.8bn sale price) while allowing the company to refocus on its absolute core strength: catalyst R&D and manufacturing, rather than complex project integration. |
| Weaknesses | Hydrogen Technologies business unit was unprofitable, reporting a £50 million operating loss in FY 23/24. Business model was exposed to the high capital risk and long timelines of large-scale projects awaiting FID. | Less direct involvement in the overall project execution risk for blue hydrogen. Potential gap in offering a single, integrated “blue” solution, as LCH™ now belongs to a competitor (Honeywell). | The sale to Honeywell directly resolved the weakness of capital intensity and operating losses associated with the project-based hydrogen business. JM shed balance sheet risk for a significant cash infusion. |
| Opportunities | Capitalize on government support for UK hydrogen clusters by becoming the dominant technology provider. Addressable market for low-carbon syngas solutions estimated at £1-2 billion. | Become the leading catalyst supplier (“arms dealer”) to a broad range of global CCU, e-fuel, and SAF projects, capturing high-margin, recurring revenue. Leverage partnerships (e.g., with SAMSUNG E&A) to integrate its catalyst technology into diverse end-to-end solutions. | The pivot validated a new, more scalable opportunity. Instead of betting on a few massive projects, JM can now supply its “crown jewel” catalysts to dozens of projects globally, as seen with Reolum (Spain) and USA BioEnergy (USA). |
| Threats | Slower-than-expected development of the hydrogen economy, leading to reduced investment pace. Reliance on a few major projects (H2Teesside, H2H Saltend) reaching a positive FID, which is subject to policy and market risk. | Competition from other catalyst providers in the rapidly growing SAF and e-methanol markets. Honeywell, now owning LCH™, becomes a formidable integrated competitor in the blue hydrogen space. | The threat of slow hydrogen project FIDs was mitigated by divesting the business most exposed to it. The company now faces more direct competition in the catalyst space but has diversified its market risk across various CCU applications and geographies. |
Forward-Looking Insights: JM’s Future as the “Intel Inside” of the Energy Transition
Johnson Matthey’s decisive actions in 2025 signal a clear path forward. The company has deliberately traded the capital-intensive, high-risk world of integrated project development for the more focused, scalable, and potentially more profitable role of a premier catalyst and component supplier. This strategic pivot is not a retreat but a calculated repositioning onto more defensible and lucrative ground.
In the year ahead, market actors should expect Johnson Matthey to aggressively pursue further technology licensing and catalyst supply agreements in the sustainable aviation fuel (SAF) and e-methanol sectors. The commercial wins with USA BioEnergy and Reolum are likely the first of many, as JM solidifies its position as an indispensable technology partner for decarbonizing aviation and shipping. A key signal to watch will be the financial performance of its Clean Air division, which now houses these growth technologies. Achieving predictable, high-margin revenue from catalyst sales will be the ultimate validation of this new strategy. Furthermore, watch for JM’s role in the ecosystem developing around its former LCH™ technology. It’s plausible that JM will become a critical catalyst supplier to the very blue hydrogen projects that Honeywell now leads, demonstrating a successful transition from project owner to a vital “arms dealer” in the global energy transition. The trend is clear: specialization and a focus on core competencies are gaining traction over vertical integration as the decarbonization market matures.
Understanding these strategic shifts is critical for anyone navigating the energy transition. To conduct your own deep-dive analysis on companies like Johnson Matthey or track developments across the CCUS landscape, explore a dedicated market intelligence platform. Discover how Enki can provide the data and insights you need to stay ahead.
Frequently Asked Questions
Why did Johnson Matthey sell its successful blue hydrogen (LCH™) technology?
Johnson Matthey sold its Catalyst Technologies business, including the LCH™ technology, as a strategic pivot to move away from the high capital risk, long timelines, and operating losses (£50 million in FY 23/24) associated with developing large-scale integrated projects. The £1.8 billion cash sale allowed the company to de-risk its business model and focus on its core competency: high-performance catalyst manufacturing.
What is Johnson Matthey’s new strategy after the divestment?
Johnson Matthey’s new strategy is to act as a focused, high-value catalyst supplier—an “arms dealer” for the energy transition. Instead of licensing entire plants, it now supplies critical, consumable catalysts for a diverse and global portfolio of Carbon Capture and Utilization (CCU) projects, particularly in the rapidly growing Sustainable Aviation Fuel (SAF) and e-methanol markets.
Is Johnson Matthey still involved in the hydrogen market?
Yes, but in a different capacity. While it sold its blue hydrogen *production* technology, the company remains involved in hydrogen *applications*. For example, it opened a new testing facility for hydrogen-powered internal combustion engines (H2ICE) in 2025, focusing on developing and supplying components like after-treatment catalysts for vehicles that use hydrogen.
What are the key technologies JM is focusing on now?
Post-divestment, Johnson Matthey is focusing on its portfolio of mature catalyst technologies for high-value applications. Key examples from the article include its eMERALD™ technology for converting CO₂ to e-methanol, selected for a large plant in Spain, and its FT CANS™ technology, co-developed with bp, for producing SAF, which was chosen for a major biorefinery in the US.
How did this strategic shift change Johnson Matthey’s geographic focus?
The shift transformed the company’s geographic focus from being heavily concentrated in the UK’s blue hydrogen hubs (like Teesside and the Humber) to a diversified, global footprint. The new strategy targets regions worldwide with strong demand for decarbonizing transport, evidenced by new major projects in Spain (e-methanol) and the USA (SAF), as well as partnerships in Iceland (sustainable methanol).
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