The AIM-listed Sheffield firm said Sheffield City Council and the London Borough of Camden have signed a deal to participate in its Hydrogen On Site Trials (Host) programme.
The local authorities join logistics firm DHL, London Stansted Airport and the Forestry Commission in signing up for the trials.
ITM is currently building its HFuel high-pressure refueller, thanks to support from the Technology Strategy Board and partners Gateway to London and Revolve Technologies. ITM's innovative electrolyser technology creates high-purity hydrogen from electricity and water. Trials will start next year, once HFuel has been built, and will provide each council with two Ford Transit vans run on hydrogen generated by portable refuellers.
ITM chief executive Graham Cooley said: "We are delighted that Sheffield Council and the London Borough of Camden have taken the initiative to become the first local authorities to join the Host programme in order to appraise the potential of ITM's energy storage: clean fuel technology, for decarbonising return to base logistics fleet vehicles and realising local air quality objectives.
"Sheffield and London are important locations for local authority trials of ITM's technology. ITM Power's manufacturing facility is based in Sheffield, where we already have an existing refuelling station on Atlas Way.
"We are keen to see the benefits of the trial extended throughout the local economy. In London, Camden presents the ideal partner for presenting our technology to the capital.
"It's all about producing a clean fuel at the point of use, addressing the important sustainability issue of eliminating the carbon footprint of the fuel supply chain in the inner city.
"The Host trials will form an important role in demonstrating the potential of ITM's HFuel technology to the local authority logistics sector marketplace over the next year and we expect companies from other sectors to be joining the Host scheme in the near future."
The councils get one week's free trial of HFuel and two Transit vans, and an option to lease both HFuel and vehicles for extra weeks. The demonstrations will be run and managed by ITM staff.
Coun Andrew Sangar, Sheffield Council's cabinet member for climate change, said: "Access to low carbon transport technology is an important factor in attracting businesses to the city, with commercial vehicles being a major contributor of carbon emissions.
"ITM's hydrogen refuelling trial firmly puts the city on the map for testing the latest clean fuel technology."
Gloria Esposito, senior sustainability officer at London Borough of Camden, said: "Camden has some of the poorest air quality levels in London and we are committed to improving air quality and making Camden a low carbon borough."