ITM Power (AIM: ITM), the energy storage and clean fuel company, announces an update on trading and operations. We now have £9.69m of projects under contract and a further £8.98m of contracts in the final stages of negotiation, constituting a total pipeline of £18.67m.
ITM Power also has a growing pipeline of qualified quotes for its rapid response electrolyser products for both energy storage and refueling applications. The bulk of enquiries are for larger scale platforms in the range of 0.3MW to 6MW, often including ancillary systems. The availability of several years of field data from our PEM electrolyser systems, along with utility client references in Germany, is proving valuable to potential customers and has played a major role in securing new business opportunities.
• In the US, we achieved operational status for the Riverside CA fuelling station in record time
• In the UK, the M1 refuelling station opened in September 2015 is refueling vehicles daily. The station will be upgraded from 350bar to dual 350 & 700bar in July this year.
• Our first London refueling station, at the National Physical Laboratory in Teddington, will open in May with the second, at the Centre for Engineering and Manufacturing Excellence in East London, opening in July
• Three UK forecourt refuelling stations will be opened before year end, making a total of five confirmed refuelling stations for delivery in the UK by the end of 2016
• There are three further UK refuelling stations in the final stages of negotiation
• ITM Power has become an approved supplier to BOC, part of the Linde group, and an approved subcontractor and supplier to Artelia, the leading fuel forecourt designer and architect
• The UK Government has reaffirmed its commitment to the findings of the multi-partner UKH2M project for a network of 65 hydrogen refuelling stations to be operational in the UK by 2020
• The 0.5MW electrolyser and compression system for deployment at the European Marine Energy Centre on Orkney is undergoing factory acceptance testing prior to shipping to site
• The first 1MW electrolyser system project based on the large stack platform is in the final stages of negotiation
• In January 2016, we successfully raised £5.8m before expenses to support the working capital requirements associated with the increased pipeline. The Company now considers itself to be in a position to support new larger orders as they convert from the sales quoting process.
• Staff numbers have been kept under tight control and currently the Company has 66 staff
• Any product development work is tightly focused on scale, performance and cost reduction
• ITM Power is participating in a number of key marketing events in the coming months, ensuring awareness of our activities and product offering. We will be exhibiting again at the Hannover Messe from 25 – 29 April, when we will have be giving a number of presentations as well as encouraging attendees to visit our stand (Energy Hall 27, Stand B66) where a complete 0.3MW HGas180 electrolyser system and a 1 MW stack system will be on display.
In addition to Hannover, we will be:
− Exhibiting at the International Summit for Energy Storage, Dusseldorf from 15 – 17 March
− Exhibiting at the World Hydrogen Energy Conference in Zaragoza, Spain from 13 – 16 June
− Giving presentations at All-Energy, in Glasgow from 4 – 5 May and at the 12th International Hydrogen and Fuel Cell Conference at the Birmingham NEC on 15 March
As the Company builds up more manufacturing and commercial experience, project timetables will be forecast with greater clarity, which, in turn, will result in revenue forecasts for any single time period becoming more accurate. Our key strategic goal is to become cash flow positive in the shortest time possible while at the same time strictly controlling the cost base – which we have successfully achieved over the last two years despite revenues rising significantly.
Andy Allen, CFO, ITM Power commented: “We are in a strong financial position now that we have secured the working capital required to realise the existing pipeline. Client confidence in ITM Power has increased as a result of the stronger balance sheet. We look forward to updating the market as further sales are achieved.”