REG - ITM Power PLC - 24 MW Sale to Yara

ITM PowerAnnouncement

28/01/2022 07:00

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RNS Number : 9118Z  ITM Power PLC  28 January 2022

28 January 2022

 

ITM Power PLC

("ITM Power" or the "Company")

 

24 MW Sale for Ammonia Production

 

ITM Power (AIM: ITM), the energy storage and clean fuel company, is pleased to
provide details of the sale of a 24MW electrolyser to Linde Engineering
contained in the Company's Half Year Report issued yesterday. The electrolyser
is to be installed at a site operated by Yara Norge AS ("Yara") located at
Herøya outside Porsgrunn, about 140 km southwest of Oslo. The site covers an
area of approximately 1.5 square kilometres and is the largest industrial site
in Norway. The Porsgrunn site produces 3 million tons of fertiliser per year.

 

The hydrogen required for ammonia production is currently produced from SMR
(steam methane reforming). Yara intends to start replacing this grey hydrogen
with green hydrogen produced from renewable energy and electrolysis. The 24MW
system supplying 10,368 kg/day of hydrogen will account for approximately 5%
of the plant's consumption and serve as a feasibility study for future
upscaling. Yara has received a grant of up to NOK 283m (£23.6m), pending ESA
approval, from Enova SF, a Government funding body to invest in green
solutions for hydrogen used for industrial purposes in Norway.

 

The electrolyser equipment is due to be ready for shipment from ITM Power in
Q4 2022 with revenue realised in the Company's 2022/2023 financial year.

 

The Porsgrunn plant is one of Norway's largest sources of CO(2) emissions
outside the oil and gas industry, emitting around 800,000 tonnes per year. The
electrolysis plant will be powered by renewable energy and provide enough
hydrogen to produce 20,500 tonnes of ammonia per year which can be converted
to between 60,000 and 80,000 tonnes of green fertiliser. This will reduce the
plant's CO(2) emissions by approximately 41,000 tonnes. The site is expected
to supply its first green ammonia-based products in mid-2023.

 

Dr Graham Cooley, CEO of ITM Power, said: "Decarbonisation of industry is
critical to achieving the commitments of countries to reduce greenhouse gas
emissions. Globally, the largest use today of hydrogen produced from
hydrocarbons is in the production of ammonia for fertilisers. This use has to
be curtailed and eventually eliminated.  We are very pleased to be working
with forward-thinking producers such as Yara and the Norwegian Government to
address this issue."

 

John van der Velden, Senior Vice President Global Sales & Technology,
Linde Engineering, added: "This project showcases Linde Engineering's market
leadership in electrolysis projects. Given the growing demand from the
fertilizer industry for green hydrogen, this plant is a step towards further
upscaling and increasing the size of these projects worldwide."

 

Magnus Ankarstrand, President of Yara Clean Ammonia, said: "The project aims
to supply the first green ammonia products to the market as early as mid-2023,
both as fossil free fertilizers, as well as emission free fuel for ships.
Green ammonia is the key to reducing emissions from world food production and
long-distance shipping. With this project, we move from intention to actions
together with Linde Engineering and local contractors."

 

For further information please visit www.itm-power.com
(http://www.itm-power.com/)  or contact:

 

 ITM Power plc
 James Collins, Investor Relations                 +44 (0)114 551 1205

 Justin Scarborough, Investor Relations            +44 (0)114 551 1080

 Investec Bank plc (Nominated Adviser and Broker)  +44 (0)20 7597 5970
 Jeremy Ellis / Chris Sim / Ben Griffiths

 Tavistock (Financial PR and IR)                   +44 (0)20 7920 3150
 Simon Hudson / David Cracknell / Tim Pearson

 

About ITM Power PLC:

ITM Power manufactures integrated hydrogen energy solutions for grid
balancing, energy storage and the production of renewable hydrogen for
transport, renewable heat and chemicals. ITM Power PLC was admitted to the AIM
market of the London Stock Exchange in 2004. In October 2019, the Company
announced the completion of a £58.8m fundraising, including an investment by
Linde of £38m, together with the formation of a joint venture to deliver
renewable hydrogen to large-scale industrial projects worldwide. In November
2020, ITM Power completed a £172m fundraising, including a £30m investment
by Snam, one of the world's leading energy infrastructure operators. In
January 2021, the Company received an order for the world's then largest PEM
electrolyser of 24MW from Linde. In October 2021, the Company, with Linde,
announced the deployment of a 100MW electrolyser at Shell's Rhineland
refinery, following the start-up of an initial 10MW facility at the site. In
November 2021, ITM Power raised £250m to accelerate expansion.

 

ITM Power operates from the world's largest electrolyser factory in Sheffield
with a capacity of 1GW (1,000MW) per annum, with the announced intention to
build a second UK Gigafactory in Sheffield with a capacity of 1.5GW expected
to be fully operational by the end of 2023. The Group's first international
facility, expected to have a capacity of 2.5GW per annum, is intended to be
operational by the end of 2024, bringing total Group capacity to 5GW per
annum. Customers and partners include Sumitomo, Ørsted, Phillips 66, Scottish
Power, Siemens Gamesa, Cadent, Northern Gas Networks, Gasunie, RWE, Engie,
GNVert, National Express, Toyota, Hyundai and Anglo American among others.

 

About Yara

Yara is the world's leading supplier of mineral fertiliser and has a market
share of approx. 8%. Together with Yara Sluiskil in the Netherlands, Yara
Porsgrunn is the biggest of Yara International's production units. The
production of fertiliser at the Porsgrunn works helps satisfy the nutritional
needs of more than 35 million people. The company's products are delivered all
over the world, the biggest market being Asia, which buys over 25% of NPK
(complex fertiliser) capacity each year.

 

Yara Porsgrunn consists of several factory units: a modern ammonia factory
with a capacity of 530,000 tonnesper year, three nitric acid factories with a
capacity of 1.3mt acid per year, two modern complete fertiliser (NPK)
factories with a total capacity of about 2.0mt NPK per year and a calcium
nitrate factory with a capacity of about 1mt per year. Yara Porsgrunn has
about 450 employees and is the biggest production unit in Herøya Industrial
Park.

 

Yara Porsgrunn also has plants which provide food producing and industrial
companies with carbon dioxide (CO2), argon gas, nitrogen gas, oxygen gas,
liquid fertiliser and odour control solutions

 

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