Losses have widened at ITM Power as the energy storage and clean fuel company warned of production delays and announced the departure of its chief executive.

The Sheffield-based firm, which produces electrolysers that convert water into liquid hydrogen, said it was scrapping its target to have 5 gigawatts of electrolyser production capacity in place by 2024, and had shelved plans to open a second UK factory in Sheffield because of cost escalation, supply constraints and time delays.

ITM Power, which employ over 430 people, now plans to increase capacity to 1.5GW per year by 2023 at its Sheffield factory, up from previous plans for 1GW. Its remaining capacity will now come mainly from factories in continental Europe instead of the UK.

In its full-year results released on Wednesday, the company said: "We are amending our ambitions for the timing of our target to have 5 GW of production capacity. We have also reviewed our plans to open a second UK factory at Aviation Park, given the current business climate and cost escalation.”

Dr Graham Cooley - chief executive of ITM Power. Picture: Shaun Flannery Photography Ltd

Pre-tax losses almost doubled to £46.7mn on revenues of £5.6mn in the year to the end of April. The setbacks follow delays to the delivery of its new electrolyser technology to German industrial gas company Linde’s Leuna plant.

ITM Power said its chief executive, Dr Graham Cooley, was stepping down after 13 years in the role, leading the company through significant growth and development.

It added that the search has begun for a new chief executive. Dr Cooley will remain in position until a successor is appointed, and thereafter assume a senior strategic role in the Company, reporting to the chairman and the new chief executive.

Dr Graham Cooley said: “It has been a privilege to lead ITM Power through its transition from an R&D (research and development) business to a world leading electrolyser manufacturing company. As we seek to become a global manufacturing powerhouse, now is a good time for me to step aside and hand over to someone with more experience in this area.”

Sir Roger Bone, chairman of ITM Power, added: “Graham’s contribution to this company’s growth, over many years, is immeasurable. We are pleased that he has agreed to remain with the company in a strategic role so that we may continue to benefit from his knowledge, wisdom, experience and relationships.

“On behalf of the board, all of ITM Power’s staff and shareholders, I thank him for his efforts and vision in helping to create the business we are today.”

Looking ahead, the company said continued investment in capability and capacity would see losses increase in the near term, with an improved position in the medium term.

Losses widen at ITM Power as CEO steps down