January 2020

ITM Power (AIM: ITM), the energy storage and clean fuel company, announces half year results for the six month period ended 31 October 2019. Comparable figures, where stated, refer to the corresponding period in 2018 unless otherwise indicated.
 
Commercial:
• Formation of a Joint Venture with Linde Engineering, ITM Linde Electrolysis GmbH (“ILE”) focusing on delivering green hydrogen to large scale industrial projects
• Transformative £58.8m fundraise to:
o facilitate move to Bessemer park
o fund the continuing development of 5MW electrolyser module o initially fund the Joint Venture, ILE
o provide balance sheet strength and flexibility
 
Operational:
• Lease for new 1GW factory signed, with Principal Contractor appointed for fitout on a 30 week programme
• US Business development MoU with Iwatani Corporation America
• As of today, the total backlog stands at £42.4m (2018: £33.6m) with £16.3m (2018: £23.2m) of projects under contract and a further £26.1m (2018: £10.4m) in the final stages of negotiation.
• The qualified tender opportunity pipeline is now over £248m (2018: £240m), representing 37 projects with an average size of £6.7m.
 
Financial:
• Total income of £3.8m (£5.0m), down 24%, comprising:
o Revenue of £2.4m (£1.2m), up 100%
o Grant income plus grants receivable for capital projects of £1.4m (£3.8m), down 79%
• Loss from operations £9.8m (£5.3m), increased by 85%
• EBITDA Loss of £8.3m, (£4.5m), increased by 84%
• Cash balance (excluding restricted balances) of £56.9m (£15.6m) at period end 
• Cash burn (excluding fundraise) of £6.2m (£4.8m), up 29%
• Net working capital of £9.0m (£9.4m), down 4%
 
Corporate:
• Sir Roger Bone steps up to Chairman following four years on the board
• Martin Green joins the board as non-executive director
• Juergen Nowicki appointed non-executive director, nominated by Linde
• Appointment of Andreas Rupieper as MD of ITM Linde Electrolysis GmbH
• Nicola Ham Edmonds appointed Company Secretary
• Prof. Roger Putnam and Lord Roger Freeman retire from the board  
 
Graham Cooley, CEO, commented: “The formation of the Joint Venture with Linde and the strategic investment that accompanied it is transformative for ITM Power. The deal allows ITM Power to concentrate on its core competence of developing and manufacturing electrolysis equipment. The Company is now able to offer a full turnkey solution at industrial scale with the EPC competence of a world leader in the hydrogen industry. The opportunity to bid up to 1GW per annum of electrolysis equipment from Bessemer Park gives the Company a powerful cost reduction trajectory. I am confident that ITM Power and our partner Linde have a world class offering.”
 
Roger Bone, added: “I am delighted to take over from Roger Putnam as chairman of ITM Power and to oversee the integration of the Company’s activities with Linde Engineering into a successful joint venture. I thank Roger for his contribution and commitment to the Company during his tenure and look forward to further developing our governance to drive ITM Power forward.”
 
For further information please visit www.itm-power.com or contact:
 
ITM Power plc (0)114 244 5111 Graham Cooley / Andy Allen    
Investec Bank plc (Nominated Adviser and Broker)  (0)20 7597 5970 Jeremy Ellis / Chris Sim / Ben Griffiths / Tejas Padalkar   
Tavistock (Financial PR and IR) (0)20 7920 3150 Simon Hudson / Edward Lee / Barney Hayward 
 
About ITM Power plc:
ITM Power plc manufactures integrated hydrogen energy solutions for grid balancing, energy storage and the production of green 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 fundraise, including a subscription by Linde of £38 million, together with the formation of a joint-venture with Linde to focus on delivering green hydrogen to large scale industrial projects worldwide.  ITM Power signed a forecourt siting agreement with Shell for hydrogen refuelling stations in September 2015, (which was extended in May 2019 to include buses, trucks, trains and ships) and in January 2018 a deal to deploy a 10MW electrolyser at Shell’s Rhineland refinery. ITM Power announced the lease of the world’s largest electrolyser factory in Sheffield with a capacity of 1GW (1,000MW) per annum in July 2019. Customers and partners include Sumitomo, Ørsted, National Grid, Cadent, Northern Gas Networks, Gasunie, RWE, Engie, BOC Linde, Toyota, Honda, Hyundai and Anglo American among others.
 
 

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ITM Power (AIM: ITM), the energy storage and clean fuel company, is pleased to announce the incorporation of ITM Linde Electrolysis GmbH (“ITM Linde”), a joint venture company between ITM Power and Linde as announced in October.
 
ITM Linde will focus on providing global green gas solutions using ITM Power’s modular PEM electrolysis technology and Linde’s world class EPC expertise to deliver turnkey solutions to customers.
 
ITM Power is also pleased to announce that Andreas Rupieper, Head of Group R&D and Portfolio Management at Linde will be appointed as Managing Director of ITM Linde. Before Joining Linde as Vice President – Head of Business Unit Petrochemistry, Andreas worked as a senior consultant for Management Engineers, now part of PWC Strategy and before that for 13 years at Thyssenkrupp, most recently as Project Director, EPC.
 
Graham Cooley, CEO of ITM Power, commented: “I am delighted that Andreas has been confirmed as MD of the newly incorporated joint venture, demonstrating the collaboration with Linde has proceeded as expected and reached this next stage of development. I look forward to working closely with Andreas as we open new markets and customer opportunities.”
 
Andreas Rupieper, Managing Director of ITM Linde, added: “Hydrogen is a key facilitator in the energy transition and has significant market potential. Joining forces with ITM Power, a leading OEM for electrolysis-based hydrogen production systems enables a joint market offering to serve our customers with the best-in-class solution for their specific requirements.”
 
For further information please visit www.itm-power.com or contact:
 
ITM Power plc Graham Cooley, CEO, +44 (0)114 244 5111

Investec Bank plc (Nominated Adviser and Broker) Chris Sim / Jeremy Ellis / Ben Griffiths, +44 (0)20 7597 5970
Tavistock (Financial PR and IR) Simon Hudson / Edward Lee / Barney Hayward, +44 (0)20 7920 3150
 
About ITM Power plc:
ITM Power plc manufactures integrated hydrogen energy solutions for grid balancing, energy storage and the production of green 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 fundraise, including a subscription by Linde of £38 million, together with the formation of a joint-venture with Linde to focus on delivering green hydrogen to large scale industrial projects worldwide.  ITM Power signed a forecourt siting agreement with Shell for hydrogen refuelling stations in September 2015, (which was extended in May 2019 to include buses, trucks, trains and ships) and in January 2018 a deal to deploy a 10MW electrolyser at Shell’s Rhineland refinery. ITM Power announced the lease of the world’s largest electrolyser factory in Sheffield with a capacity of 1GW (1,000MW) per annum in July 2019. Customers and partners include Sumitomo, Ørsted, National Grid, Cadent, Northern Gas Networks, Gasunie, RWE, Engie, BOC Linde, Toyota, Honda, Hyundai and Anglo American among others.
 
About Linde
Linde is a leading industrial gases and engineering company with 2018 pro forma sales of USD 28 billion (EUR 24 billion).  The company employs approximately 80,000 people globally and serves customers in more than 100 countries worldwide.  Linde delivers innovative and sustainable solutions to its customers and creates long-term value for all stakeholders.  The company is making our world more productive by providing products, technologies and services that help customers improve their economic and environmental performance in a connected world. For more information, please visit www.linde.com
 

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ITM Power (AIM: ITM), the energy storage and clean fuel company, is pleased to note the announcement by HyDeploy that the UK’s first pilot project to inject zero carbon hydrogen into a gas network to heat homes and businesses is now fully operational. The full text of HyDeploy’s announcement is set out below.

Dr Graham Cooley, CEO, ITM Power said: “I am delighted that this important pilot project is now operational. The increased use of hydrogen to decarbonise heat via the gas grid will perform a critical role in helping the UK to fulfil its ambitious climate change obligations. Indeed, the Committee for Climate Change has indicated that the UK will need between 6GW and 17GW of electrolysis in the next 30 years to store renewable power and provide renewable heat. Today’s announcement is a very significant step.”

 

UK’s first grid-injected hydrogen pilot gets underway

 

  • Ground-breaking UK hydrogen trial underway at Keele University
  • First time zero carbon hydrogen has been injected in the UK’s modern gas grid
  • 20% hydrogen/natural gas blend can cut CO2 emissions without the need to change gas appliances

 

The UK’s first live pilot to inject zero carbon hydrogen into a gas network to heat homes and businesses is now fully operational.

HyDeploy is a ground-breaking green energy trial at Keele University, Staffordshire, that could help Britain cut its carbon emissions and open the door to a low-carbon hydrogen economy.

The HyDeploy demonstration is injecting up to 20% (by volume) of hydrogen into Keele University’s existing natural gas network, feeding 100 homes and 30 faculty buildings. The 20% hydrogen blend is the highest in Europe, together with a similar project being run by Engie in Northern France.

Backed by Ofgem’s Network Innovation Competition, the £7 million project is led by Cadent in partnership with Northern Gas Networks, Keele University, the Health and Safety Executive (HSE) Science Division, integrated hydrogen energy systems manufacturer ITM-Power, and independent clean energy company Progressive Energy.

When burned, hydrogen creates heat without carbon dioxide. The Committee on Climate Change has determined that the use of hydrogen in our energy system is necessary in order to reach Net Zero.

Heating for domestic properties and industry accounts for half of the UK’s energy consumption and one third of its carbon emissions, with 83% of homes using gas to keep warm. The 20% volume blend means that customers can continue to use their gas supply as normal, without any changes being needed to gas appliances or pipework, while still cutting carbon emissions.

If a 20% hydrogen blend was rolled out across the country it could save around 6 million tonnes of carbon dioxide emissions every year, the equivalent of taking 2.5 million cars off the road.

Ed Syson, Chief Safety and Strategy Officer for Cadent, said: “It is impossible to overstate the importance of this trial to the UK - this is the first ever practical demonstration of hydrogen in a modern gas network in this country.

“Hydrogen can help us tackle one of the most difficult sources of carbon emissions – heat. This trial could pave the way for a wider roll out of hydrogen blending, enabling consumers to cut carbon emissions without changing anything that they do.

“HyDeploy could also prove to be the launchpad for a wider hydrogen economy, fuelling industry and transport, bringing new jobs and making Britain a world-leader in this technology. Urgent action is needed on carbon emissions and HyDeploy is an important staging post on that journey in the UK.”

Mark Horsley, Chief Executive, Northern Gas Networks, said: “Hydrogen is a key piece of the decarbonisation jigsaw, and this milestone allows us to take a huge leap forwards in terms of its use in meeting climate change targets.

“Customers are ready to embrace cleaner, greener solutions in their homes, and projects like HyDeploy give us the opportunity to start making a difference to emissions today. We’re very excited to be a part of it.”

Professor Mark Ormerod, Deputy Vice Chancellor and Provost at Keele University, said: “Sustainability and low carbon energy is a key overarching institutional priority for Keele University, and we are delighted to be a key partner in HyDeploy.

“HyDeploy is a pioneering landmark national demonstration project, using our campus as a genuine 'living laboratory' for low carbon and energy efficient technologies. HyDeploy has the potential to be hugely impactful and lead to a step change in the reduction of carbon emissions associated with heat.”  

The hydrogen is produced by an electrolyser. The electrolyser, produced by the UK based hydrogen energy solutions provider ITM Power, uses an electrical current to split water molecules into hydrogen and oxygen.

In 2018 the HSE granted the HyDeploy consortium an exemption to the current limit of 0.1% hydrogen in the UK gas network. The exemption to 20% hydrogen for the project at Keele was awarded after the project gathered extensive evidence, which was scrutinised by the HSE, to demonstrate the hydrogen blend would be ‘as safe as natural gas’. A similar approach was used to allow the first bio-methane producers to inject biogas into the natural gas network.

Gas safety checks were carried out in the homes and buildings in the trial area. Laboratory tests were carried out on a range of gas appliances, as well as extensive research on the effect of hydrogen on the different materials found in the gas network and the appliances.

Key learning was shared between international projects who are also trialling hydrogen blends. The HSE Science Division has been overseeing all technical and safety aspects of HyDeploy.

Keele University was viewed as the perfect location, owning and operating its own private gas network, which could be safely isolated from the wider UK gas network. The University is working with businesses, academics and graduates to create Europe’s first ‘at scale’ multi-energy-vector Smart Energy Network Demonstrator (SEND) – where new energy-efficient technologies can be researched, developed and tested in a real world environment.

 

Fast facts

  • Heating homes and industry accounts for nearly half of all energy use in the UK and one third of the country’s carbon emissions.
  • Hydrogen was a major component in ‘town gas’, gas created from coal and used widely throughout Britain before the discovery of North Sea gas in the 1960s. Up to 60% of the gas (by volume) being used by consumers was hydrogen.
  • Across Europe, permitted levels of hydrogen in the gas supply vary, from 0.1% in the UK to up to 12% in parts of the Netherlands

www.hydeploy.co.uk.

 

For further information, please visit www.itm-power.com or contact:

 

ITM Power plc

(0)114 244 5111

Andy Allen, Finance Director

 

 

 

Investec Bank plc (Nominated Adviser and Broker)

(0)20 7597 5970

Jeremy Ellis / Chris Sim

 

 

 

Tavistock (Financial PR and IR)

(0)20 7920 3150

Simon Hudson / Barney Hayward

 

 

About ITM Power plc:

ITM Power plc manufactures integrated hydrogen energy solutions for grid balancing, energy storage and the production of green 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 fundraise, including a subscription by Linde of £38 million, together with the formation of a joint-venture with Linde to focus on delivering green hydrogen to large scale industrial projects worldwide. ITM Power signed a forecourt siting agreement with Shell for hydrogen refuelling stations in September 2015, (which was extended in May 2019 to include buses, trucks, trains and ships) and in January 2018 a deal to deploy a 10MW electrolyser at Shell’s Rhineland refinery. ITM Power announced the lease of the world’s largest electrolyser factory in Sheffield with a capacity of 1GW (1,000MW) per annum in July 2019. Customers and partners include Sumitomo, Ørsted, National Grid, Cadent, Northern Gas Networks, Gasunie, RWE, Engie, BOC Linde, Toyota, Honda, Hyundai and Anglo American among others.

 

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+44 (0)114 244 5111

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ITM Power is a public limited company registered in England and Wales. Company Number 05059407