Sumitomo Corporation ("Sumitomo") and ITM Power plc ("ITM Power") are pleased to announce a Strategic Partnership Agreement ("the Agreement") for the development of multi-megawatt projects in Japan based exclusively on ITM Power's electrolyser products.
ITM Power and Sumitomo (together "the Partners") have a similar vision for improving air quality, through the use of hydrogen to decarbonise heat, transport and industrial processes by deploying PEM electrolysers. Both parties agree on the importance of storing renewable energy using the production of CO2-free hydrogen.
Under the terms of the Agreement, ITM Power will supply multi-megawatt electrolyser systems to Sumitomo for integration into wider projects on an exclusive basis in Japan and on a non-exclusive basis in other territories. Sumitomo will introduce ITM Power's products in Japan, including potential customer financing and will refer to ITM Power any electrolyser projects which Sumitomo becomes aware of and considers to have the potential for collaboration between the Partners outside Japan.
The Partners will use their combined capabilities to: market, develop, finance and execute multi-megawatt hydrogen projects; jointly develop the value proposition and work up a number of strategic business cases for rollout, and; conduct exclusive feasibility studies for several projects in Australia.
ITM Power has deployed products in the UK, Europe and the US as well as the rest of the world, and currently has £40.3m of deal pipeline to be delivered, representing in excess of 14MW of electrolysis, balance of plant and hydrogen storage. This in turn builds on the 8MW delivered in Financial year ending April 2018 and 2MW in financial year ending April 2017, demonstrating a growing track record of deployments at the Megawatt scale.
Geographically, ITM Power deal pipeline is centred around the UK (53%) and Europe (44%), and this partnership agreement presents a platform for entering the Japanese market and the rest of the world. The company has a non-contracted pipeline of tender quotations in excess of £250m, which comprises 12% UK, 60% Europe and 28% Rest of the World.
Commenting, Mr. Suzuki, Executive Officer, Sumitomo, said: "The Sustainable supply of energy and improvement of the global environment are material issues that should complement each other. Our goal is to contribute to creating a carbon free society. In order to accomplish this, we will be involved in producing CO2 free hydrogen by electrolyzing water with renewable energy, which can be utilized as fuel for the next generation of energy and mobility. Today we have signed a Strategic Partnership Agreement with ITM Power. Together, we will be exploring possibilities of concrete joint business in Japan and other areas."
Prof Roger Putnam CBE, Chairman, ITM Power plc commented: "I have worked with Sumitomo Corporation in the past and am delighted to have signed this strategic partnership to introduce ITM Power's technology into Japan. This is an important next step in the company's development."
Commenting, Dr Graham Cooley, ITM Power CEO, said: "Japan is a strategically important territory for hydrogen. This partnership is based upon Sumitomo's knowledge of Japan - the customer base and the compliance landscape. We're pleased that Sumitomo recognises that ITM Power has a world leading solution for the low carbon production of hydrogen and hope that Sumitomo's operations in many other territories outside Japan may be of relevance to the deployment of ITM Power's technology. I believe both Partners' mid to long term vision is highly synergistic.
For further information please visit www.itm-power.com or contact:
ITM Power plc
Graham Cooley, CEO
Andy Allen, Finance Director
+44 (0)114 244 5111
Investec Bank plc (Nominated Adviser and Broker)
Jeremy Ellis / Chris Sim / Alexander Ruffman
+44 (0)20 7597 5970
Tavistock (Financial PR and IR)
Simon Hudson / James Collins
+44 (0)20 7920 3150
About ITM Power plc
ITM Power manufactures integrated hydrogen energy solutions for grid balancing, energy storage and the production of green hydrogen for transport, renewable heat and chemicals. ITM Power was admitted to the AIM market of the London Stock Exchange in 2004. In September 2017 the Company announced the completion of a GBP29.4m working capital fundraise. The Company signed a forecourt siting agreement with Shell for hydrogen refuelling stations in September 2015 and subsequently a deal to deploy a 10MW electrolyser at Shell's Rhineland refinery. Additional customers include National Grid, RWE, Engie, BOC Linde, Toyota, Honda, Hyundai, Anglo American among others. The Company's order pipeline stands at £33.8m of projects under contract and £6.5m of contracts in the final stages of negotiation, totaling £40.3m (subject to exchange rate variation).