FTSE 100 engineering firm Johnson Matthey (LON: JMAT) is nearing a deal to build a £60m hydrogen fuel cell factory in the UK, according to the Telegraph.
The newspaper reports that the company is expected to announce a deal in coming days, driving a boom in the fuel being used in cars, buses and trains.
London-listed Johnson Matthey had no comment on the hydrogen plans.
The firm, over 200 years old with a market cap of £3.7bn, is expected to create hundreds of jobs at the hydrogen gigafactory, to be built at its existing site in Royston, Hertfordshire.
The Telegraph reports that it hopes to sell £200m of the technology by the end of the 2025 financial year.
Johnson Matthey is best known for making catalytic converters for cars and the new facility will make components for fuel cells which will generate electricity, which will in turn power a motor.
The firm pulled out of battery development last year in order to focus on hydrogen, having been in the process of a £200m investment.
It ultimately saw CEO Robert Macleod replaced by Liam Condon.
Hydrogen has applications in heavy goods transport, as well as a substitute for diesel in trains and ships.
The UK Government is also considering introducing a blend of hydrogen into Britain’s gas network to help decarbonise residential heating.
JMAT shares are up 9% over the last five days to £20.70.