Green demand fuels ITM Power

ITM Power said it is in the right place at the right time
ITM Power said it is in the right place at the right time
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​Clean fuel company ITM Power has reported a significant increase in completed projects in its second half and expects to see a big jump in annual income as a result.

The Sheffield-based firm said its contracts backlog stands at a record level of £45m following an extension of its UK refuelling collaboration agreement with Shell.

The new agreement will run until 2024 and covers the refuelling of all types of hydrogen vehicles - from passenger cars to commercial vehicles, including buses, trucks, trains and ships.​

ITM's chief executive ​Dr Graham Cooley​ said: "ITM Power is undoubtedly in the right place at the right time. ​This trading and pipeline update demonstrates the attractiveness of our products around the world and the hard work of our team. ​

"​Total recognised revenue, our contracts backlog and quotations against tenders are all showing strong growth and the world outlook for green hydrogen demand and electrolysers is very encouraging."​

​Total income is expected to be £17m​, an increase of over 20​ per cent​ year-on-year. ​A loss of around £6.7m ​will be in line with ​b​oard expectations.

Total financial assets​ ​at the year-end were £19.8m, comprising £5.2m of cash, £1.7m of cash on guarantee and deployed working capital of £12.9m.

The group has spent money buying components for the delivery of ​four​ hydrogen refuelling stations (HRS) in the UK, ​a​ bus HRS in France and materials for the Shell 10MW Refhyne project.

The contracts backlog of £45.1m​ is up 26 per cent since February. It includes £29m of projects under contract and a further £16.1m of awards in the final stages of negotiation.

The tender opportunity pipeline also stands at a record level of £330m, an increase since February of £90m (up 38​ per cent​)​, including 46 active commercial tender responses over the last 12 months with an average project size of £7.2m reflecting strong industrial demand for larger systems.

​ITM said its r​efuelling station network availability was consistently above 98​ per cent​ as a result of the close collaboration with the ​c​ompany's partners Shell and Linde.

The ​c​ompany currently has a portfolio of 34 projects and a team of 10 dedicated project managers, including French and German speakers, who work closely with clients to support the delivery of projects to time and budget. ​ITM said m​any of the projects are innovative in terms of technology, integration and deployment environments.

​The firm said a close working relationship with customers enables ​it to capture valuable learning and to develop leading best practice.

​For​ example, one of the ​c​ompany's electrolysers was deployed in an extreme thermal environment and is now being redeployed, under a commercial agreement, and is being analysed to gain data on deployments at operating temperatures above 40​o​C.

ITM ​said it now has experience of deploying in a range of difficult real-world weather environments including extreme heat and dust, high winds, sea spray and freezing temperatures. ​It said t​his experience generates important and valuable data for system design and accurate tender assessment and costing.