£5.9m contracts increase since successful share placing at ITM Power
Energy storage and clean fuel company ITM Power has seen an contract value increase of £5.9m in the two months since its £29m share placeing on 29 September.
The Sheffield-based company maintains its focus on increasing commercial sales and currently has £20.2m of projects under contract and a further £22.4m of contracts in the final stages of negotiation. The total of £42.6m shows an increase of £5.9m since September.
It went ahead with the placing to help fulfil a backlog of orders.
ITM Power has 12 units within its manufacturing facility in Sheffield which are either in build, undergoing factory acceptance testing or ready for shipment. An additional five units are being commissioned in the field ahead of coming online. Altogether, these 17 units constitute over 5MW of installed capacity. The production plan starting in 2018 already exceeds 15MW of capacity.
The firm said: “In line with the company’s growth strategy and manufacturing plans, the order backlog and opportunity pipeline demonstrates a clear trend towards bigger unit sizes and larger scale industrial applications. The backlog is also reflective of the Company’s focus on commercial sales and shift away from its previous reliance on grant income.
“In order to accommodate the increased numbers and size of units in production, Heads of Terms are being negotiated for a relocation to a larger facility which will accommodate all functions of the Company.”
ITM Power said its National Grid HyDeploy project was well underway and had seen excellent progress. Its HyDeploy project seeks to address a key issue for the UK in how to reduce the carbon footprint as a result of heating homes.
The company has started work on examining the potential deployment of large-scale Power-to-Gas energy storage within the boundaries of the Northern Gas Networks gas distribution system. The work, funded by the Department for Business, Energy and Industrial Strategy (BEIS) as part of the Energy Storage Feasibility Study Competition launched in January 2017, will be completed in Q1 2018.
BEIS is also undertaking a £25m project to explore the potential use of hydrogen gas for heating UK homes and businesses. The project will run from 2017 to 2021 and will aim to define a hydrogen quality standard, and to explore, develop and test domestic and commercial hydrogen appliances.
ITM Power has a total portfolio today of 12 funded refuelling stations which it owns. Five stations are open to the public: Riverside (US), AMP (Rotherham), NPL (London), CEME (London) and Cobham (London).
A further five HRS are in construction: Birmingham (bus HRS), Orkney (Kirkwall), Beaconsfield (Shell forecourt), Gatwick (Shell forecourt) and Swindon.
Planning permission has been granted for car and bus HRS at 19 sites in total with 14 different planning departments across the UK.
ITM Power has entered into 17 hydrogen fuel supply contracts for refuelling fuel cell electric vehicles: Honda, Toyota GB PLC, Hyundai Motor UK Ltd, Commercial Group, Skanska, UlemCo Ltd, Arval UK Ltd, UK Government Car Service, Arcola Energy, Johnson Matthey, Europcar, The Science Museum, JCB, Anglo American, Green Tomato Cars, Yorkshire Ambulance Service and Northern Gas Networks.
Graham Cooley, chief executive, said: “Our strong pipeline growth reflects the hydrogen and energy storage markets’ rapid growth worldwide and ITM’s focus on commercial sales. We have larger systems, compliant to operate all over the world, placing ITM Power in a great market position.
“This is a very exciting time for the energy industry, and ITM Power is at the forefront of a market which will revolutionise air quality and energy storage for future generations.”
