Clean fuel firm ITM Power to expand its manufacturing capacity

The Sheffield-based energy storage firm is the world’s leading hydrogen electrolyser manufacturer. Hydrogen electrolysers convert water into liquid hydrogen, which is vital for the UK's renewable power infrastructure.

In a trading update for the six months to October 31, the firm said it had a record power backlog of 499 MW on December 1, up 61 per cent since September.

Dr Graham Cooley, CEO of ITM Power, said: "Today's update provides a compelling endorsement of how fast our markets are growing and our decision to raise further funds to increase capacity domestically and internationally to take full advantage of this growth.

"Together with our partners, we believe we can gain a material market share as a result of our experience, expertise and capacity to help industry to decarbonise using green hydrogen."

The group raised £250m in November to boost its expansion plans. It has also acquired a site in Sheffield for its second 1.5 GW UK factory.

The first overseas factory of 2.5 GW will follow once a site has been identified to create 5 GW of capacity by the end of 2024.

The Refhyne II consortium, of which ITM is a member, was awarded a grant of £28m by CINEA (the European Climate, Infrastructure and Environment Executive Agency) for the development of a 100 MW electrolyser at Shell's Energy and Chemicals Park in Rhineland.

The project will undergo an engineering design phase which will be followed by a final investment decision expected in late 2022 with delivery then scheduled for 2024.

Revenue rose from £200,000 to £4.1m in the half year period and the group made a gross loss of £2.4m, down from a loss of £2.8m. It is still in the pre-profitable stage of development.

Looking forward, ITM said it is maintaining its guidance of 33-50 MW, with revenue expected to be heavily weighted to the second half.

It expects to see continued growth in its tender pipeline and power backlog.