REG - ITM Power PLC - Intention to Purchase Site for Second Giga Factory

ITM PowerAnnouncement

09/11/2021 07:00

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RNS Number : 7750R  ITM Power PLC  09 November 2021

9 November 2021

 

ITM Power plc

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

 

Intention to Purchase Site in Sheffield for the Second UK Giga Factory

Collaboration with University of Sheffield

 

ITM Power (AIM: ITM), the energy storage and clean fuel company, is pleased to
announce that it has reached agreement on Heads of Terms to acquire a site for
the Company's second UK factory in Tinsley, Sheffield, from the University of
Sheffield at a cost of £13.4m. The site is part of the University of
Sheffield Innovation District, and close to the M1 motorway and public
transport links. It is approximately 2 miles from the Group's existing
Gigafactory and Technology Centre at Bessemer Park. The land has outline
planning consent and a full design brief agreed with the City Council. The
acquisition is subject to the grant of full planning permission for the new
factory.

 

As set out at the time of the recent fundraise, ITM intends to build a second
automated factory of some 260,000 sq. ft on the site with a capacity of 1.5 GW
pa and currently expected to be fully operational by the end of 2023 to
complement the existing 1 GW pa capacity at Bessemer Park.  The new factory
will provide the template for the Group's first international facility, which
is expected to have a capacity of 2.5 GW pa, expected to bring total Group
electrolyser capacity to 5 GW per annum by the end of 2024. One of the key
features of the second UK factory will be an enlarged power supply to test
multiple modules of the Company's next generation product concurrently.

 

The overall cost of the new Sheffield factory is expected to be in the region
of £50-55m. In addition to the land cost of £13.4m, the Company is currently
allocating up to £16m for the construction of the shell, and a further
£20-25m for the fit-out and power supply.

 

The new factory will also include office space for manufacturing staff and
will be a low environmental impact building, using the best of current low
carbon technologies. ITM Power will work closely with a developer, to be
appointed once planning permission has been received, to incorporate low
carbon footprint materials and facilities.

 

Collaboration with the University of Sheffield

At the COP26 Regional Roadshow - Accelerating a decarbonised South Yorkshire
economy, being held later today at ITM Power's Gigafactory at Bessemer Park,
Dr Graham Cooley and Professor Dave Petley will launch a collaboration between
the Company and the University of Sheffield. At the heart of the collaboration
is an intention to jointly develop a plan and apply for funding for a National
Hydrogen Research, Innovation and Skills Centre, to be located at the
University of Sheffield Innovation District (neighbouring ITM Power's proposed
new site).

 

The initial focus of the collaboration will be the development of research,
innovation and skills for the hydrogen sector, which is expected to include
research into the safe and efficient manufacture of hydrogen using renewable
energy and/or nuclear power production, research into product life cycle
analysis as well as recycling and recovery of system components, research into
improving hydrogen system manufacturing processes and research into the
development use of digital twins and virtual reality tools (as already in use
with ITM Power) to enhance manufacturing and after sales maintenance
activities. In addition, the collaboration will study the creation of new jobs
at all levels in the hydrogen sector as well as continuing career training and
the promotion of hydrogen domestically and internationally.

 

Dr Graham Cooley, CEO of ITM Power, said: "I am delighted to be working more
closely with the University of Sheffield and delighted that our second UK
factory site is in Sheffield. Both initiatives will support the local economy
through job creation and supply chain support.

 

"The planning and construction of our second, 1.5 GW capacity, factory marks
the next step on delivering our strategic plan to create a blueprint for an
automated PEM electrolyser manufacturing facility to be rolled out
internationally.  At the same time, we are also focussed on increasing
utilisation and throughput at our Bessemer Park Gigafactory as we prepare for
the next step change in capacity."

 

Sir Roger Bone, Chairman of ITM Power, said: "The opportunity to partner with
the University of Sheffield, recognised for its excellence in all aspects of
industrial research, will enable both parties to train the next generation of
hydrogen engineers and scientists, and continue to grow the company and the
economy in the region. I look forward to seeing this relationship develop and
prosper in the years ahead"

 

Professor Koen Lamberts, President and Vice-Chancellor of the University of
Sheffield said: "We are very pleased to be launching this partnership with ITM
Power. Hydrogen is one of the most exciting and promising clean energy
solutions and ITM is at the forefront of green hydrogen manufacturing. This
partnership is a milestone for both partners and the region in leading the way
to achieving net zero through technological innovation."

 

Professor Dave Petley, Vice-President for Innovation at the University of
Sheffield said: "The University of Sheffield has world renowned expertise in
energy innovation, and we recently announced a new Sustainable Aviation Fuels
Innovation Centre, adjacent to our Translational Energy Research Centre, both
housed at the University of Sheffield Innovation District. Our experience in
bringing together academic research and industrial expertise is helping to
solve the world's biggest problems, and our partnership with ITM Power to
advance the hydrogen sector will help make net zero a reality."

 

 

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 plc 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 £58.8 million fundraising, including an
investment by Linde of £38 million, together with the formation of a joint
venture with Linde to focus on delivering renewable hydrogen to large-scale
industrial projects worldwide. ITM Power signed a deal to deploy a 10MW
electrolyser at Shell's Rhineland refinery. In November 2020, ITM Power
completed a £172m fundraising, including a £30m investment by Snam, one of
the world's leading energy infrastructure operators. ITM Power operates from
the world's largest electrolyser factory in Sheffield with a capacity of 1GW
(1,000MW) per annum. ITM Power received an order for the world's largest PEM
electrolyser of 24MW from Linde in January 2021. Other 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 the University of Sheffield

 

With almost 29,000 of the brightest students from over 140 countries, learning
alongside over 1,200 of the best academics from across the globe, the
University of Sheffield is one of the world's leading universities.

 

A member of the UK's prestigious Russell Group of leading research-led
institutions, Sheffield offers world-class teaching and research excellence
across a wide range of disciplines.

 

Unified by the power of discovery and understanding, staff and students at the
university are committed to finding new ways to transform the world we live
in.

 

Sheffield is the only university to feature in The Sunday Times 100 Best
Not-For-Profit Organisations to Work For 2018 and for the last eight years has
been ranked in the top five UK universities for Student Satisfaction by Times
Higher Education.

 

Sheffield has six Nobel Prize winners among former staff and students and its
alumni go on to hold positions of great responsibility and influence all over
the world, making significant contributions in their chosen fields.

 

Global research partners and clients include Boeing, Rolls-Royce, Unilever,
AstraZeneca, GlaxoSmithKline, Siemens and Airbus, as well as many UK and
overseas government agencies and charitable foundations.

 

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