REG - ITM Power PLC - Gigastack Testing Platform UK Government Contract

ITM PowerAnnouncement

19/05/2022 10:15

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RNS Number : 1091M  ITM Power PLC  19 May 2022

19 May 2022

 

ITM Power plc

("ITM Power", "the Group" or the "Company")

 

Award of UK Government Contract to Develop 5 MW Gigastack Testing Platform

 

ITM Power (AIM: ITM), the energy storage and clean fuel company, announces
that the Company has been awarded a contract by The Department for Business,
Energy and Industrial Strategy (BEIS), under its Net Zero Innovation Portfolio
Low Carbon Hydrogen Supply 2 Competition, to accelerate the commercial
deployment of ITM Power's 5 MW Gigastack platform and its manufacture. The
award for the Gigatest project is for £9.3m and follows initial designs
developed through previous BEIS funding competitions.

 

The 5 MW Gigastack platform sits at the heart of the Group's technology
roadmap.  Development commenced in 2019 with the completion of a feasibility
study funded by the BEIS Low Carbon Hydrogen Supply Competition. This was
followed by a second phase, also funded by the BEIS Low Carbon Hydrogen Supply
Competition and covered two streams: a Front-End Engineering Design (FEED)
study for a 100 MW deployment at Philips66 and Orsted in the Humber region and
the development and validation of the Gigastack platform.  The second phase
concluded in 2021.

 

As announced in the half year results in January, the testing programme for
the 5 MW Gigastack platform includes both component level and full-scale
evaluation.  Gigastack is 2.5 times larger than ITM Power's previous
state-of-the-art stack platform and it will undergo rigorous testing in
representative conditions to validate the performance through real-world
conditions, ensuring the technology is ready for large-scale
commercialisation.  This 4th-generation stack has multiple competitive
advantages including lower capital costs and a smaller system footprint.
These advantages will enhance the stack's ability to operate under flexible
conditions when coupled to renewable energy sources, producing green hydrogen
at low cost.

 

Gigatest will also enable the deployment and validation of key manufacturing
equipment at the existing Gigafactory and the second, more automated facility
on which construction commences later this year.  This validation will
contribute to the subsequent initiation of semi-automated mass-production of
electrolyser stacks.

 

Graham Cooley, CEO, said: "The UK Government has put green hydrogen at the
centre of its plans to achieve its legislated Net Zero targets.  This was
underlined by the recent doubling of green hydrogen to 5 GW in the Energy
Strategy published last month.  Awards under competitions like this will
ensure that the UK remains a world leader in energy transition technology and
manufacture, creating jobs, new supply chains and valuable high-tech exports."

 

Greg Hands, Energy Minister at BEIS, added: "The UK is truly leading the world
in hydrogen innovation thanks to the exciting efforts of companies like ITM
Power.

"The government support which they have received today will help to boost the
development of hydrogen as the clean, affordable, homegrown superfuel of the
future."

 

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.

 

Department for Business, Energy & Industrial Strategy

This funding has been made available from the Government's £1 billion Net
Zero Innovation Portfolio, which aims to support innovation in the supply of
hydrogen. This competition looks to provide funding for projects that can help
develop a wide range of innovative low-carbon hydrogen supply solutions.

 

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