News

ITM Power Announces Sale of Hydrogen Refueling JV to Bolster £28m Investment in Electrolyser Business

By August 14, 2023 2   min read  (366 words)

August 14, 2023 |

ITM Motive 2

ITM Power has made a strategic move by announcing a non-binding Heads of Terms agreement for the sale of Motive Fuels Ltd, a joint venture established to expand hydrogen refueling stations across the UK.

Background: A Strategic Shift

Founded in March 2022, Motive Fuels Ltd had the ambitious vision to become a significant player in the UK’s refueling business. With seed funding of £30m committed by each JV party, the venture aimed to develop and launch hydrogen refueling stations throughout the country.

However, as part of ITM’s 12-month plan emphasizing increased cost and capital discipline, the company has now opted to redirect £28m of pre-committed cash towards its core electrolyser manufacturing business.

Focusing on Core Competencies

The decision aligns with ITM’s priority of becoming a volume manufacturer of state-of-the-art Electrolysers. This strategic redirection of funds will enable ITM to concentrate on scaling up to seize significant growth opportunities.

Andy Allen, CFO of ITM Power, expressed optimism about the move, stating, “The sale of Motive will allow us to devote our time, attention and capital resources on our core competencies, to ready the business for scaling up to capture the significant growth opportunities that lie ahead of us. Motive has been an important part of ITM’s journey, and it is important to us that the business will be left in capable and ambitious hands.”

Transaction Details

The planned transaction is expected to be finalized within the current calendar year. While the specific terms of the deal are not disclosed, the overall sentiment reflects ITM’s strategic direction and commitment to advancing its primary business focus.

A Calculated Move Towards Growth

ITM Power’s decision to sell Motive Fuels Ltd and reinvest in its electrolyser business signifies a calculated shift towards long-term growth and innovation. By concentrating resources and efforts on core competencies, ITM is positioning itself to be at the forefront of technological advancements in the hydrogen industry. The agreement marks not only the end of an era for the joint venture but also a promising new chapter for ITM as it continues to shape the future of hydrogen energy.

 

 

Read the most up to date Fuel Cell and Hydrogen Industry news at FuelCellsWorks

FuelCellsWorks

Author FuelCellsWorks

More posts by FuelCellsWorks
error: Alert: Content is protected !!