Markets roundup: ITM Power, Drax and Equiniti
Sheffield-based clean fuel company ITM Power has signed a collaboration with Iwatani Corporation of America (ICA), a subsidiary of Iwatani Corporation, to deploy multi MW electrolyser-based hydrogen energy systems in North America.
The agreement enables the companies to share opportunities and, where a commercial case exists, work together on an exclusive basis to deploy ITM Power’s PEM electrolysers and Iwatani’s leading gas handling and deployment solutions.
Particular areas of interest lie in the California hydrogen refuelling station market and large-scale liquid and gaseous renewable hydrogen production for domestic and export markets.
Joe Cappello, CEO Iwatani Americas, said: “We are very pleased to have signed this agreement and to be collaborating with ITM Power to meet the needs of customers who have committed to transitioning to low-carbon-intensity derived hydrogen as an energy source.
“ITM Power’s world leading electrolysers and Iwatani’s vision for growth in the North American green hydrogen market align very well and we look forward to deploying projects together.”
Dr Graham Cooley, CEO, ITM Power, added: “Iwatani Corporation is a recognised leader in the hydrogen industry, and we are delighted to be collaborating with the company in North America.
“Transport refuelling is just the tip of the iceberg for demand for hydrogen from renewable sources and this partnership will be well positioned to participate in this exciting and rapidly growing industry.”
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Drax Group, which operates Drax Power Station near Selby, is targeting biomass self-supply capacity of 5m tonnes by 2027.
It has reported that it has 1.5m tonnes of existing capacity, plus 0.35m tonnes of low-cost capacity announced at the 2019 half year results and is evaluating options for a further 3m tonnes over the next seven years.
Drax says it remains focused on opportunities to reduce its cost of biomass to a level which is economic without subsidy in 2027.
Savings will be delivered through further optimisation of existing biomass operations and greater use of low-cost wood residues; an expansion of the fuel envelope to incorporate other renewable fuels and; a significant expansion of self-supply capacity.
The company also reported today that it was trading in line with expectations, with its acquired assets performing strongly.
Will Gardiner, Drax Group CEO said: “Drax’s purpose is to enable a zero-carbon lower cost energy future.
“We believe sustainable biomass has a long-term critical role to play. That’s why we plan to supply 80 percent of our biomass from our own sources – a significant increase on the 20 percent we currently self-supply.
“Supplying more of our own biomass will cut costs and reduce supply chain risks, ensuring our biomass power generation remains viable in the long term. When combined with carbon capture it will also enable negative emissions, helping the UK on its path to net zero by 2050.”
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Equiniti Group, parent company of Leeds-based Equiniti Credit Services, today released its trading update for the period 1 July 2019 to 18 November 2019.
The company said its performance in the period has been “reassuring” and expects 2019 full year results to be towards the upper end of market expectations for revenue and towards the lower end for underlying EBITDA due to weaker higher margin UK corporate activity.
The update adds: “Whilst we expect the uncertainty in the macro environment to continue, Equiniti remains well positioned.
“We expect further organic growth in the UK as we build on our relationships with our exceptional client base. The US offers a platform for accelerated growth based on market opportunity, the potential to take market share and the opportunity to cross-sell digitised services into our blue-chip client base.”
The firm’s 2019 market expectations include revenue of between £550m and £567m and underlying EBITDA of £136m to £142m.
