The GRHYD project has a key role in the strategy of the Hauts-de-France region’s 3rd industrial evolution, under the coordination of ENGIE, represented by its ENGIE Lab CRIGEN research center linked up with 10 other partners: AREVA H2Gen, CEA, CETIAT, Dunkirk Urban Community, ENGIE Ineo, GNVERT, GRDF, INERIS, McPhy, and STDE. The demonstrator receives the support of the French state as part of the Future Investments Program run by ADEME (French Environment and Energy Management Agency), and accredited by the
Tenerrdis competitive industry cluster. Its inauguration marks the start of the demonstration with the injection of the first hydrogen molecules into the local natural gas grid, at a level of 6% to begin with (and up to a maximum of 20%), for supplying the 100 households and the health center’s boiler in the “Petit Village” district of Cappelle-la-Grande. The aim of this two-year phase is to validate the technical and economic relevance of converting electricity into a new gas via a combination of hydrogen and natural gas.

Power-to-Gas is a solution for the future for transforming electricity from renewable energy into hydrogen gas. Once converted, this energy can be stored and transported in the natural gas grid. And it has enormous potential: ADEME assesses the potential energy of hydrogen produced from electricity via Power-to-Gas in France by 2035 at around 30 TWh per year.

By helping to bring about the emergence of a new way of recovering and storing renewable energy, the demonstrator exemplifies the hydrogen plan launched June 1, 2018 by Nicolas Hulot [French Environment Minister], and the importance of scaling up the business sector in France. The country benefits from cutting-edge industrial players right across technologies where the demonstrators are essential. The innovative aspect of the GRHYD project lies in the rates of incorporation for injecting hydrogen into gas distribution grids compared with those of other projects: hydrogen injection into gas grids is also being tested in Fos-sur-Mer and other European countries, such as in Germany and soon in the United Kingdom.

1st Power-to-Gas demonstrator in France / 11 partners / budget of 15 million euros / 5 years of study, authorization and demonstration / 3 containers installed containing cutting-edge technologies: one for electrolysis, one for storage, and one for injection into the hydrogen grid / 100 homes and the health center boiler supplied by a new gas made up of hydrogen and natural gas.

McPhy, a unique expertise in the hydrogen solid-state storage

“Ligthing or heating our homes, our companies, moving people and merchandises, producing the goods and services necessary to our daily comfort…: energy shapes the world we live in.
For more than ten years, McPhy helps transform energy, by accelerating the widespread adoption of clean energy thanks to the hydrogen vector.
Whether it is for decarbonizing the energy mix, for industrial use or for the transportation sector: hydrogen has shown itself to be an efficient, reliable and competitive solution to succeed in energy transition.
We are proud to provide our expertise in the hydrogen solid-state storage to the GRHYD project, hence contributing – alongside our partners – to the success of this unique initiative, which is opening up the future of Power-to-Gas in France.”
Pascal MAUBERGER, McPhy’s Chairman and CEO

This station has a provisional refueling capacity of 20 kg/day in hydrogen but should increase rapidly to 80 kg/day. This scale corresponds to the immediate needs of current vehicles in the south of Paris. The definitive installation will produce hydrogen on site with an electrolyser powered solely by renewable energy. The hydrogen station is designed, manufactured and integrated by McPhy, a leader in production, storage and hydrogen distribution equipment that serves the energy transition.
The entire project has been given financial support from the European Fuel Cells and Hydrogen Joint Undertaking (FCH JU).

With a stream of more than 25 000 vehicles per day, the Rungis Market, which offers free motorway toll to all clean vehicles that use the station for refueling, is a strategic location for the development of green mobility for freight transport in Ile-de-France.

As the quality of air is a major public health issue, accelerating the development of green mobility is even more important given that the transport sector is responsible for 35% of the carbon emissions in France.

ENGIE positions itself as a forerunner in this revolution. The Group develops solutions that cover the full range of green mobility technologies, adapting to all uses of the personal vehicle freight transport. ENGIE owns, through its subsidiary GNVert, more than 150 alternative fuel stations in France.
ENGIE is also an international leader on the recharging infrastructures market for electronic vehicles, with a presence in 30 countries and 980 cities around the world.
Mobility is not the only area of application for renewable hydrogen, notably in the area of large-scale energy storage. For ENGIE, renewable hydrogen is one of the missing links needed to construct a more sustainable energy system. This conviction led the Group to create in the beginning of 2018 a business unit with a global vocation dedicated to this market in the making.

This partnership represents a first step that will enable EDF to speed up its expansion into this burgeoning new market that will create new jobs in France and around the world.

Cédric Lewandowski, EDF Group’s Senior Executive Vice President in charge of Innovation, Strategy and Planning, commented: “We are delighted to announce this link-up with McPhy, a leading player in hydrogen and a group with which we have been working for several years. This partnership represents a first step that will enable EDF to speed up its expansion into this burgeoning new market that will create new jobs in France and around the world.”

With the additional financial resources EDF Group is bringing and its support, we will be able to accelerate the pace of our expansion, ramp up our business development and move into new markets.

Pascal Mauberger, Chairman and Chief Executive Officer of McPhy, added: “We are very pleased to have sealed this partnership with EDF Group, a world leader in low-carbon energy. The deal represents a key new milestone in McPhy’s development. With the additional financial resources EDF Group is bringing and its support, we will be able to accelerate the pace of our expansion, ramp up our business development and move into new markets. We wish to thank EDF Group for the trust it has shown in our technology and our production infrastructure for hydrogen-based solutions. From a personal perspective, I am very proud to be leading this new stage in McPhy’s development.”

Founded in 2008 and listed on Euronext, McPhy is a leading player in hydrogen. Its full range of solutions comprises electrolyzers, hydrogen refueling stations and storage facilities. McPhy covers the entire value chain from R&D through to engineering, manufacturing, production, operations and maintenance. McPhy possesses a highly skilled team of over 80 staff located mainly in France, Italy and Germany that meets the needs of the fast-expanding markets of carbon-free hydrogen for industry and mobility. By joining forces with EDF, which is set to become its core shareholder, McPhy is gaining additional resources that will help it finance its expansion. It will be able to leverage the benefits of EDF’s position in its strategic markets in Europe, the United States and China and count on its active support. The aim is for McPhy to ramp up its business development and win new customers in France and around the world.

EDF’s goals lie in the development of a carbon-free and competitive range of hydrogen solutions, primarily for industrial and mobility clients, by drawing on its industry partners and the momentum built up by specific regions. The Group has already been active on the R&D front for more than 15 years in hydrogen, including electrolyzers and vehicle refueling stations, at its EIFER research center in Karlsruhe. In the continuity of its involvement to reduce the economy’s carbon footprint and the Hydrogen plan announced by the French minister for the environmental transition on 1 June, EDF group’s contribution to the energy transition has now gained a whole new dimension. By joining forces with McPhy, a leading player in hydrogen production, storage and distribution equipment, it will be able to play its part in developing carbon-free hydrogen.

McPhy’s firm roots in France and beyond represent a crucial advantage. In France, McPhy is actively involved in rolling out hydrogen-based solutions. These include industrial projects, such as a 1 MW unit for GRTgaz in Fos-sur-Mer, and also mobility projects. Out of the 20 or so hydrogen stations in France, it has supplied equipment for 13. The company has also achieved commercial success on a number of fronts outside France. For example, it won a contract in China to deliver hydrogen production equipment for Jiantou Yanshan Wind Energy’s 4 MW unit.

Thanks to McPhy’s expertise, EDF will be able to offer its customers new services reducing their carbon footprint while enhancing their competitiveness. These skills in producing and marketing carbon-free hydrogen also dovetail perfectly with EDF Group’s strategy in electromobility. Through this partnership, EDF is stepping up its commitment to fight global warming (2). EDF considers electrolytic hydrogen as a crucial means of reducing the carbon footprint of economic sectors (industry, mobility) when it is manufactured using carbon-free electricity, as it is the case with EDF’s low carbon mix combining nuclear power and renewable energy (3).

EDF’s investment will take place through a reserved capital increase by McPhy totalling around €16 million at a price of €5.10 per share (representing a discount of 4.2% compared with the average closing price for the last three months, of €5,32, and of 15% compared with the current price per share of €6.00), representing 3 137 250 new McPhy shares, around 21.7% of its share capital, and 20.4% of its voting rights. The capital increase remains contingent upon satisfaction of the conditions precedent, including shareholder approval at McPhy’s general meeting on 26 June 2018, and the approval visa of the French financial market authority (AMF) upon the prospectus related to the capital increase. This should be finalized within days of this approval being obtained.

In addition, the appointments of two board members named by EDF Nouveaux Business will be proposed at McPhy’s general meeting on 26 June 2018.

(1) EDF Nouveaux Business Holding’s acquisition of a shareholding in McPhy’s capital is subject to receipt of shareholders’ approval at McPhy’s general meeting due to be held on 26 June 2018 and the approval visa of the French financial market authority (AMF) upon the prospectus related to the capital increase.
(2) According to a recent study by the Hydrogen Council with McKinsey, hydrogen could account for close to one-fifth of the total energy consumed by 2050, reducing CO2 emissions by 20%, or 55 million tons.
(3) According to IFP Energies Nouvelles, 96% of hydrogen is manufactured from fossil fuels to date.

This technology will be deployed at the future bus depot in Houdain, currently under construction. The SMT AG will equip it with a hydrogen refueling station capable of recharging buses equipped with fuel cells. The future Bulle 6 line will be the first in France exclusively operated with hydrogen buses.

This urban mobility project constitutes a decisive step in the third industrial revolution in the heart of the North Region – Pas-de-Calais. Hydrogen represents an essential pillar in the energy transition and the development of renewable energies, by nature intermittent and unpredictable. More than a technological choice that allows bigger environmental gains, the choice of on-site electrolysis production favorizes the development of renewable energies by facilitating the equilibrium of electricity grids and by permitting the valorization of surplus production.

The experience and the expertise acquired by ENGIE through its subsidiary GNVERT, with almost 20 years in the refueling of alternative fuels for most of the passenger transport networks in France, have allowed it to propose a solution that is in phase, during the entire life cycle of the rolling stock, with the environmental issues of the territory, while integrating the stringency levels that the Artois-Gohelle transport authority expects for the operation and security of its transport network. In addition, this project integrates perfectly into the energy vision advocated by ENGIE of a world in 3D: with energy that is decarbonated, decentralized and digitized.

The technological choices have also turned to national actors by selecting hydrogen production and distribution equipment from the McPhy company, a major actor in the French hydrogen sector which has positioned and confirmed its place both in France and internationally.

We would like to thank ENGIE for its continued confidence, allowing us to set up, in Hauts-de-France, the first McPhy station for hydrogen buses.

Pascal MAUBERGER, McPhy’s Chairman and CEO

Laurent Duporge, President of SMT AG: “This territory, too often reduced to its industrial past, will be the first in France to operate a line exclusively with hydrogen buses, six to be exact! It’s a wonderful example of the choice for environmental development, a technological choice orientated towards the future. It’s up to us to demonstrate renewal in the mining basin.”

Philippe Van Deven, Director-General of GNVERT: “The choice for renewable hydrogen integrates naturally into the energy transition for passenger transport. In addition to the exemplary environmental performance of this ‘zero emission’ solution, hydrogen is the energy carrier that will allow the wider development of renewable energies in France. All the more a real industrial field can be built with the expertise available in France The energy transition isn’t a constraint, it’s an opportunity!”

Pascal Mauberger, Chairman and CEO of McPhy: “We would like to thank ENGIE for its continued confidence, allowing us to set up, in Hauts-de-France, the first McPhy station for hydrogen buses. Thanks to state-of-the-art research and innovation and a first-rate industrial infrastructure, McPhy provides its expertise for the production and distribution of hydrogen. Our McLyzer electrolyzer can produce clean hydrogen on site, intended for the supply of a large capacity McFilling with a high service rate. The transportation sector is the midst of a revolution. By opting for hydrogen mobility, the SMT AG conciliates user comfort for its passengers, service continuity, and the participation in reducing air pollution and improving public health.”

By bringing to market the only alkaline electrolyzers offering this level of performance, McPhy is taking the technological lead in its sector, with an increasingly efficient and competitive product range.”

Pascal Mauberger, McPhy’s Chairman and Chief Executive Officer, made the following comments: “McPhy is strongly committed to providing companies in the energy, transport and industry sectors with the leading-edge technology they need to leave fossil fuels behind. We are delighted to announce a major technological advance and the launch of our “Augmented McLyzer” range, that enable us to support our clients as they build up scale: producing hydrogen on a large scale and at a competitive price, thereby helping to meet the challenge of transitioning to a low-carbon economy. By bringing to market the only alkaline electrolyzers offering this level of performance, McPhy is taking the technological lead in its sector, with an increasingly efficient and competitive product range.” 

KEY FIGURES OF OUR 100 MW PLATFORM

25 modules of 4 MW

Same architecture concept than the 20 MW cluster

A total footprint below 4 500 m2

20 000 Nm3/h of hydrogen, more than 42 tons per day

30 bar: high pressure production

Fast dynamic response time

High energy efficiency

 “Augmented McLyzer” is a genuine technological breakthrough based on a modular architecture allowing capacities of 4, 20, 100 MW and more, thereby enabling McPhy to support its clients as they build up scale.

The electrolyzers feature the latest developments in electrolysis technology. The unique combination between De Nora’s advanced electrodes and McPhy’s high pressure (30-bar) electrolysis technology allows to double the amount of hydrogen produced by the electrolysis cells, with a significant increase of energy efficiency. Density has been more than doubled, so that 20 MW of capacity (see below) – i.e. more than 8.5 tons of clean hydrogen per day – can be installed in less than 900 m², from high-voltage power to pure hydrogen delivery.

The new multi MW architecture presented today integrates these augmented electrolysis cells, with the same stack size, meeting the needs of industrialists that want to produce hydrogen on a large-scale using electricity, at a competitive cost compared with polluting technologies.

McPhy electrolyzers are designed to be used in automatic mode and to require little maintenance. They are also known for their very fast response time and their durability.

McPhy is now starting large-scale production of these high-density stacks for the growing needs of the energy, industry and transport sectors.

More and more, major industrial companies from chemical, refinery, steel or other industrial sectors, are engaged in developing clean manufacturing to contribute to a new low-carbon industry era.
Water electrolysis is a competitive and attractive strategic technology to reconcile productivity, competitiveness and social responsibility.

Leading industrial companies have already selected the innovative multi MW electrolyzer platform developed by McPhy. This platform enables them to deliver hydrogen at 30 bar, with high energy efficiency, and can contribute to grid services.

Our Clean Factory Revolution takes place in the hall 27, stand C70

& don’t miss our conferences:

• Tuesday 24 April at 3:00 PM | Technical Forum (5 minutes)
  Bertrand AMELOT, EVP Sales and Marketing McPhy: “Elevator pitch – Electrolysis technology”
• Wednesday 25 April at 2:00 PM | Technical Forum (20 minutes)
  Bertrand AMELOT, EVP Sales and Marketing McPhy: “Breakthrough innovation in water alkaline electrolysis and use in large 20/100 MW platform”
• Wednesday 25 April at 2:40 PM | Public Forum (20 minutes)
  Pascal MAUBERGER, McPhy’s Chairman and CEO: “Strategy to scale up and develop hydrogen market and technologies”

Upcoming financial communication 

Results for first-half 2018, 26th July 2018

We demonstrate our commitment to stay at the cutting edge of the hydrogen technology and to meet the market needs.

Pascal Mauberger, McPhy’s Chairman and Chief Executive Officer, stated: “In the very favorable context of the massive deployment of hydrogen, we are delighted to announce the launch of this new generation of electrolyzers thanks to our technological partnership with De Nora. We demonstrate our commitment to stay at the cutting edge of the hydrogen technology and to meet the markets needs for more efficient, competitive and environmental friendly electrolyzers.
This contributes to reinforce our competitive advantage. Our technologies and industrial infrastructure are ready for the “scaling up” that was predicted in the study conducted by the Hydrogen Council.”

“The unparalleled expertise and market position of De Nora in industrial electrochemistry, backed by our strong focus on R&D, together with the excellent collaboration established with McPhy has been the right springboard for developing a solution with unique features that represents a key milestone in innovation of alkaline water electrolysis. It improves significantly the value proposition to clients increasing the technological content while lowering operating costs. After three years of development, we demonstrate our capacity to accelerate the pace of innovation by launching ready-to-use products in line with clients’ expectations. Our factories are ready to manufacture large quantities of electrodes for water electrolysis and are ready for the hydrogen economy revolution” comments Luca Buonerba, De Nora’s Chief Marketing & Business Development Officer.

Come and visit us at the Hannover Messe, hall 27 stand C70, to discover in “avant premiere” our augmented electrolysis technology.

Upcoming financial communication
Results for first-half 2018, 26th July 2018

The installation of this second station in Lyon demonstrates the continued confidence our partners have in McPhy’s clean mobility

Pascal Mauberger, Chief Executive Officer of McPhy stated: “I thank our clients and partners at CNR and GNVERT for their continued confidence by entrusting us with this second installation in Lyon. This new success demonstrates the pertinence of our technologies in meeting both the increasing needs of our clients and the challenges for the transition to low-carbon energy.”

As part of the European project H2ME, funded by the European Joint Undertaking on Fuel Cell and Hydrogen (FCH JU), this new station project demonstrates the relevance of McPhy’s technologies, able to meet the growing needs of customers for large-scale mobility solutions. This station will have 4 times more capacity than the station already deployed at the Port de Lyon in 2016 and will allow CNR and ENGIE GNVERT to deliver 80 kg of clean hydrogen per day, representing a daily potential of 8 000 km of zero-emission mobility.
Furthermore, this project represents the second McPhy station in France connected to an electrolyzer that can produce hydrogen on site and on demand from renewable energy. This station will be equipped with two distribution hubs that can power light-duty and heavy-duty vehicles. It is scheduled to start operations in 2019.

The technologies and the infrastructure of McPhy are ready for the “ramp up” that was announced in the Hydrogen Council study “Scaling up” . In this context, McPhy continues to develop its technologies in order to accompany its clients in the deployment of larger-scale alternative energy solutions and to actively contribute to building the network of hydrogen infrastructures in the French territory.

The 10 McFilling stations installed or in the process of being installed in France represent a daily potential of 29,000 km of zero-emission mobility.

Upcoming financial communication 

Results for first-half 2018, 26th July 2018

This strong growth, coupled with an excellent control of our fixed costs, has led to a significant improvement in our results this year.

Pascal Mauberger, Chairman and Chief Executive Officer of McPhy, stated: “2017 highlighted the huge needs of the market induced by the necessary transition toward a decarbonized economy. In this context, McPhy demonstrated the pertinence of its cutting-edge technologies, proven by the international commercial and industrial success of all our activities. This success has allowed us to cross the threshold of € 10 million in revenue. This strong growth, coupled with an excellent control of our fixed costs, has led to significant improvement in our results this year. We are also delighted and proud to join the ranks of the Hydrogen Council as a “supporting member”. It’s a great opportunity for us to work with our peers in the large-scale deployment of the technologies and uses of hydrogen. Given the strong activity in a lead market and the ongoing ramp-up of our Group, we reaffirm our pursuit of high activity growth in 2018.”

Pascal Mauberger, McPhy’s Chairman and Chief Executive Officer, stated: “Hydrogen is a market with considerable potential. Over the last few years, we have witnessed a revolution in its use. In 10 years, McPhy has positioned itself as a leading company in this promising sector, developing advanced technologies and accruing from a very early stage outstanding references in the markets and geographic areas that drive growth. At the beginning of what is promising to be a new era, our technologies and industrial infrastructure are ready for the “scale up” that was predicted in the study conducted by the Hydrogen Council “Hydrogen, Scaling Up ». »

In the first global initiative of its kind, the Hydrogen Council is determined to position hydrogen among the key solutions of the energy transition.

The Council brings together 38 companies driven by a united vision and long-term ambition for clean hydrogen. These leaders have the ambition to work with and provide recommendations to a number of key stakeholders such as policy makers, investors, international agencies and civil society to accelerate the large-scale deployment of these innovative technologies.

KEY REFERENCES
_ Installation of 13.5 MW of high-powered electrolysis, i.e., 6 tons of clean energy per day
_ Hydrogen refueling stations representing a daily potential of 21,000 km “zero emissions”
_ To the light equipment to the multi MW platform: a complete range of solutions to support the emergence of a zero-emission society

A forerunner in hydrogen technology working for energy transition, McPhy deploys worldwide its solutions for the industry, mobility and energy sectors.
In a decade, this European SME has developed its centers of excellence in France, Italy and Germany ; and has placed itself at the forefront of technological innovation, as witnessed by outstanding references.

“In the very favorable context of the massive deployment of hydrogen, we are delighted and proud to join the ranks of the Hydrogen Council as a “supporting member”. It’s a great opportunity for us to work with our peers in the large-scale deployment of the technologies and uses of #CleanEnergy hydrogen,” concludes Pascal Mauberger.

Our know-how is acknowledged and translates into commercial and industrial success internationally for all units.

Pascal Mauberger, Chairman and Chief Executive Officer of McPhy, stated, “2017 was marked by a turning point that confirmed the reality and the ramp-up of the clean hydrogen market. McPhy’s performance this year shows that we were able to identify and develop very early on the advanced technology that responds to the colossal needs of the market, brought by the necessary transition to a decarbonized society. Today, our know-how is acknowledged and translates into commercial and industrial success internationally for all our activities, as was proven by the delivery of 4MW hydrogen generation units (Power-to-Gas) in Hebei (China), and the first exported hydrogen stations. Our qualified sales pipeline has doubled in one year and is set at over 80 million euros. We are determined more than ever to continue to seize these opportunities.”

McPhy’s revenue increased by 34%, crossing the 10 million euro threshold. This growth was primarily driven by the European zone (up 84%), a market with strong growth and in which McPhy is well positioned due to its historic anchorage. The Group offers unparalleled expertise in the development and engineering of large electrolysis systems in Germany, a solid industrial infrastructure in Italy and an engineering and prototyping capacity for storage systems and hydrogen stations in France. Lastly, this solid level of performance was obtained despite the postponement of several important contracts, expected in the second half of 2017, to the fiscal year 2018.

In June 2016, McPhy announced the entry into force of a contract for 6.4 million euros for the delivery of 4MW hydrogen generation units (Power-to-Gas) in Hebei (China). Revenue recognition for work in progress started in the second half of 2016 and was followed by the delivery of the units in the first half of 2017.
5% of the contract remain to be done in fiscal year 2018. Excluding the impact of this contract, the revenue growth for the other activities would have been 65%.

As of 31 December 2017, McPhy has a net cash position of 5 million euros.

2017 was marked by a turning point in the development of clean hydrogen throughout the world. This was exemplified by studies conducted by the Agence Internationale de l’Energie (AIE) (2.) and the Hydrogen Council (3.), which confirm that hydrogen is indispensable in order to exit a carbon economy and to respond to the challenges of public health and the perils of climate change. According to the Hydrogen Council study, the annual demand for hydrogen could represent globally 18% of the total energy demand by 2050. By this horizon, hydrogen could generate a revenue of 2,500 billion dollars and create more than 30 million jobs. In the near term, 25 billion dollars should be invested on a yearly basis between 2018 and 2030, of which 2/3 in the production equipment and in the implementation of the decarbonized hydrogen.

This economic reality has already positively impacted markets dealt with by McPhy: clean mobility, Power-to-Gas and industry. The Group was able to show that its cutting-edge technologies, developed over many years, are perfectly in line with the market’s needs:

• Clean Mobility: know-how acknowledged by prestigious partners, deployment of stations offering a potential of 21,000 km clean mobility per day;
• Power-to-Gas: the capacity to meet major challenges of energy storage and network regulation. 13.5 MW of high power electrolysis installed or in the process of installation;
• Industry: very competitive technology allowing industrial companies to reconcile economic performance and reduced greenhouse emissions, an anticipated fast-growing market, according to the AIE.

In order to better understand the evolution of the projects currently under negotiation, the Group informs that its “qualified sales pipeline” has doubled over the last 12 months, and today stands at more than 80 million euros, which thereby illustrates the acceleration of the hydrogen market. This market indicator does not take into account the massive scale electrolysis platform projects (from 10 to 100 MW), for which the impact on revenue will be quite significant.

McPhy has at its disposal an offer which is perfectly poised on these markets thanks to the McLyzer generators. McPhy is in the process of developing a new generation of electrolyzers that are more compact, responsive and efficient. These new units will strengthen its range of large capacity electrolyzers, thereby offering electricity networks the flexibility they need to absorb intermittent renewable energy supply.

All of these factors permit us to confirm the pursuit of a high rate of activity growth for 2018.

2017 results – Tuesday 13 March 2018, after market close.

1.Projets for which McPhy considers there is more than a 50% chance of success and implementation
2.Insights series 2017 / Renewable Energy for Industry
3.http://hydrogencouncil.com/hydrogen-scaling-up/