REG - ITM Power PLC - Motive Ltd - a new Joint Venture with Vitol

ITM PowerAnnouncement

23/03/2022 12:30

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RNS Number : 6741F  ITM Power PLC  23 March 2022

This announcement contains inside information

 

23 March 2022

 

ITM Power plc

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

 

ITM Power Partners with Vitol for Hydrogen Refuelling

Commitment to invest up to £30m from Vitol, matched by ITM Power, to grow
Motive

 

ITM Power (AIM: ITM), the energy storage and clean fuel company, announces
that it has concluded a strategic partnership agreement with Vitol Holdings
SARL ("Vitol") for wholly owned subsidiary ITM Motive Limited, trading as
Motive, to become a 50/50 joint-venture owned between ITM Power and Vitol.

 

Vitol is a leader in the energy sector with a presence across the spectrum:
from oil through to gas, power, renewables and carbon.  Vitol will invest up
to £30m in the venture, which will be matched by a similar investment from
ITM Power.  Motive owns all UK public hydrogen refuelling stations
constructed by ITM Power.  It was set up as a Group division in 2020 and
became a separate legal entity in May 2021.  On completion it will operate as
a distinct entity with its own board, which will comprise three directors from
ITM Power and three from Vitol.

 

As part of the transaction, Motive has entered into a framework agreement with
ITM Power, under which Motive appoints ITM Power as its preferred supplier for
up to 240 MW of electrolysis equipment to support Motive with the development
and roll-out of new green hydrogen refuelling stations.  Motive has also
appointed Vitol as its preferred supplier for up to 240 MW of electricity
demand, which will provide green power to the network of new refuelling
stations.

 

Both ITM Power and Vitol believe that the market for Hydrogen in Transport is
on the cusp of rapid expansion, supported by government incentives to
accelerate transportation decarbonisation.  This partnership will help
facilitate the rapid scaling up of production, distribution and demand
stimulation for Hydrogen to Transportation. Vitol is aligned with Motive's
strategy to target building large refuelling stations for heavy duty vehicles,
such as trucks and buses.  Over the past 18 months, Motive has been working
to develop deep relationships with a small number of blue-chip heavy goods
users in the UK and aims to develop standard 4 MW sites around the UK.

 

Graham Cooley, CEO, ITM Power PLC and a Director of ITM Motive said: "The
establishment of a joint-venture between ITM Power and Vitol brings another
valuable strategic partner to the Group.  Vitol's scale and market reach,
combined with our expertise, will provide Motive with a pathway to become a
much larger and more valuable business with multiple options in due course for
realising value for our shareholders."

 

Chris Bake, head of origination, Vitol, added: "Vitol aims to be at the heart
of the energy transition.  Hydrogen has a key role to play in decarbonising
transport and ITM Power's leading proprietary Gigastack electrolysers can
produce green hydrogen at scale and cost efficiently. Our partnership will
enable us to build Motive into a gas-for-transport company for the future,
complementing our other sustainable transport initiatives, from LNG/biogas
network Liquind, through to fleet EV solutions."

 

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 Vitol:

Vitol is a leader in the energy sector with a presence across the spectrum:
from oil through to gas, power, renewables and carbon.

 

Vitol's clients include leading industrial companies, national oil companies,
utilities and a broad range of energy market participants. Founded in
Rotterdam in 1966, Vitol today serves clients from some 40 offices worldwide
and is invested in energy assets globally including: circa 16m m3 of storage,
500 k b/d of refining capacity, 6,800 service stations, 3.3 GW thermal power
generation, and $1.3 bn capital committed to renewable investments. Revenues
in 2020 were $140 billion.

 

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