June 29, 2022

Generating costs result in annual loss of £36.5m for ITM Power

Hydrogen production company ITM power posted a loss of £36.5 million in the year to April 30 as it increased production capacity.

Cash burn of £52 million included approximately £7 million of MEP 2.0 and GEP 1.0 product development, approximately £20 million of work in progress and inventory build-up and £5 million of production equipment for Bessemer Park.

CEO Dr Graham Cooley said ITM Power has laid the groundwork for increasing its capacity which will play a critical role in decarbonizing economies using green hydrogen and enabling countries to improve their energy and food security.

“Russia’s invasion of Ukraine has accelerated the intention of many countries to increase energy and food security, with a particular focus on green hydrogen, as recent announcements from the UK government and REPowerEU show. “, did he declare. share of these global markets through our experience, expertise, partnerships and capacity.

On the positive side, it announced a “record backlog” of 755 MW as of June 1, up 53% since January, including 75 MW under contract, 342 MW in negotiation and 338 MW as preferred supplier.

ITM Power – headquartered 20 years ago in an “old barn” in Barnack near Stamford – today manufactures PEM electrolysers that help decarbonize industry, heat, power and mobility by harnessing green hydrogen.

Commercial and product developments for the hydrogen activity ITM Power

  • Preferred supplier status for 240MW of the projects with Motive, a 50/50 joint venture with Vitol, to support the deployment of refueling infrastructure
  • The sale of a 24 MW electrolyser to Linde Engineering, to be installed at a site operated by Yara Norge AS located in Herøya outside Porsgrunn. Electrolyser equipment, which will be used to produce green ammonia, will have revenue recognized in FY23
  • £9.3 million prize for Gigatet from the Department for Business, Energy and Industrial Strategy (BEIS), as part of its Net Zero Innovation Portfolio Low Carbon Hydrogen Supply 2 competition, to accelerate the commercial development of ITM Power’s 5 MW Gigastack platform and its manufacture
  • 4MW system sold to RWE in Lingen
  • Continuous product improvement – ​​MEP 2.0 pressure increased by 50% to 30 bar, GEP 1.0 on track for end of 2023 production

ITM Food Service Development

ITM Power Service is an aftermarket focused customer support company designed to provide full product lifecycle support of deployed electrolyser systems.

Existing aftermarket operations, including the group’s 24/7 remote support center in the UK, have merged into a single, focused organization with a new head office in Germany.

The organization will be led by Philip Wilson as technical director and Calum McConnell as Commercial Director, both long-term staff.

A lease has been signed for a three-storey 17,054 square foot office, control center and warehouse in Linden, conveniently located in Hesse, which is a recognized transit state in Germany with excellent motorway connections and a local infrastructure.

The facility will house all spare parts, including core PEM stack technology, to ensure high service levels and rapid deployment capability to systems in Europe, and is supported by a $2 million grant. euros from the German government.

Last month, ITM Power won a contract from the Department of Business, Energy and Industrial Strategy (BEIS), as part of its Net Zero Innovation Portfolio Low Carbon Hydrogen Supply 2 competition, to accelerate the commercial deployment of its 5 MW Gigastack platform.

The £9.3m prize for the Gigatet project follows initial designs developed in previous BEIS funding competitions.