ITM Power, the energy storage and clean fuel company, provides an update on the Group’s progress since the publication of the Half Year Report on 27 January 2022.
Development of ITM Power Service Hub in Germany
ITM Power (AIM: ITM), the energy storage and clean fuel company, provides an update on the Group’s progress since the publication of the Half Year Report on 27 January 2022. The update covers work in progress and the contracts backlog as well as unaudited financial results expected for the year ended 30 April 2022 (FY22). The Company will announce final results for the year on 8 August 2022.
Backlog:
Record backlog of 755 MW as at 1 June 2022, up by 53% since January and up by 160% yoy
- Contracted: 75 MW
- In negotiation: 342 MW
- Preferred supplier: 338 MW
Commercial and product developments:
- 240 MW preferred supplier status of projects with Motive, our 50:50 JV with Vitol, to support the rollout of refuelling infrastructure
- The sale of a 24 MW electrolyser to Linde Engineering, which is to be installed at a site operated by Yara Norge AS (“Yara”) located at Herøya outside Porsgrunn. The electrolyser equipment, which will be used to produce green ammonia, will have revenue recognised in FY23
- Award of £9.3m for Gigatest from Department for Business, Energy and Industrial Strategy (BEIS), under 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 at Lingen
- Continuous product improvement – MEP 2.0 pressure increased by 50% to 30 bar, GEP 1.0 on track for production at end of 2023
New 50/50 JV with Vitol:
- Strategic partnership agreement with Vitol Holdings SARL for wholly owned subsidiary ITM Motive Limited, trading as Motive Fuels, to become a 50/50 joint-venture owned between ITM Power and Vitol, including a framework agreement with ITM Power, under which Motive appoints ITM Power as its preferred supplier for up to 240 MW of electrolysis equipment
Development of ITM Power Service:
- Development of ITM Power Service, an aftermarket focussed customer support business designed to provide full product-life-cycle support of deployed electrolyser systems
- Existing aftermarket operations including the Group’s 24/7 UK Remote Support Centre merged into one focussed organisation with new headquarters in Germany
- The organisation will be led by Philip Wilson as Technical Director and Calum McConnell as Commercial Director, both long-term ITM Power staff members
- Lease signed on a 17,054 sqft three storey combined office, control centre and warehouse facility in Linden, ideally located in Hessen, which is a recognised transit state within Germany with excellent motorway links and 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
- Supported by €2.0m grant from the German government
Expected unaudited financial results for the twelve months to 30 April 2022:
Revenue of £5.5m (2021: £4.3m), impacted by:
- Deferral of 24 MW Leuna delivery of completed products and therefore revenue recognition of approximately £11m into FY23
Adjusted EBITDA loss of c.£36.5m (£21.4m), impacted by:
- c.£7m Increased skills acquisition
- c.£14m project delivery & production ramp up
Cash Burn of c.£52m (£37.7m), impacted by:
- c.£7m Product Development of MEP 2.0 and GEP 1.0
- c.£20m Ongoing WIP and inventory build
- c.£5m Production equipment for Bessemer Park
- Net cash at year-end of £364m (£176m)
Dr Graham Cooley, CEO of ITM Power, said: “Over the past year, ITM Power has laid the foundations, financially and operationally, to scale our production capacity which will play a critical role in decarbonising economies using green hydrogen and enabling countries around the world to enhance their energy and food security.
“Russia’s invasion of Ukraine has accelerated the intent of many countries to increase energy and food security, with a specific focus on green hydrogen, as shown by the recent UK Government and REPowerEU announcements. We believe we can gain a material share of these global markets as a result of our experience, expertise, partnerships and capacity.”
About ITM Power plc:
ITM Power manufactures integrated hydrogen energy solutions for grid balancing, energy storage and the production of renewable hydrogen for transport, renewable heat and chemicals. ITM Power PLC was admitted to the AIM market of the London Stock Exchange in 2004.
ITM Power operates from the world’s largest electrolyser factory in Sheffield with a capacity of 1 GW (1,000 MW) per annum and has a plan to grow capacity in line with demand to 5 GW per annum, supported by a £250m equity raise in Q4 2021. Partners include Linde, Shell, Snam, and Vitol among others.
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