Hydrogen #5

ITM Power AIM: ITM, [website], headquartered in Sheffield, UK, and with an office in Germany, has the world's largest electrolyser facility which the company will move to during 2020. The facility will offer low cost, high volume manufacturing and will allow for stack manufacturing, product assembly and product testing to all take place.

Markets include:

hydrogen fuel stations for cars, buses, trucks, trains etc. (The Company currently owns and operates a network of eight publicly accessible hydrogen refuelling stations; which will expand to eleven by summer 2020);
energy storage for decarbonized heat, grid balancing, hydrogen islands, power-to-gas energy storage, hydrogen tube trailer filling, back-up power, storing renewable energy and hydrogen lighting; and
industrial hydrogen: refinery H2, methanation, renewable ammonia, steel, glass, mining and renewable methanol.

ITM Power has formed a worldwide joint venture to market green hydrogen projects with Linde Engineering - part of Linde AG, a world leading supplier of industrial, process and specialty gases. This gives the company access to its partner's global client list and the opportunity to focus on its core competency: the development and construction of electrolysers.

Recent News

Jan 27th, '20: announces half year results for the six month period ended 31 October 2019. Comparable figures, where stated, refer to the corresponding period in 2018 unless otherwise indicated.

Commercial:

Formation of a Joint Venture with Linde Engineering, ITM Linde Electrolysis GmbH ("ILE") focusing on delivering green hydrogen to large scale industrial projects

• Transformative £58.8m fundraise to:

facilitate move to Bessemer park
fund the continuing development of 5MW electrolyser module o initially fund the Joint Venture, ILE
provide balance sheet strength and flexibility

Operational:

lease for new 1GW factory signed, with Principal Contractor appointed for fitout on a 30 week programme;
US Business development MoU with Iwatani Corporation America;
as of today, the total backlog stands at £42.4m (2018: £33.6m) with £16.3m (2018: £23.2m) of projects under contract and a further £26.1m (2018: £10.4m) in the final stages of negotiation;
the qualified tender opportunity pipeline is now over £248m (2018: £240m), representing 37 projects with an average size of £6.7m.

Jan 2nd, '20: The company is pleased to note the announcement by HyDeploy that the UK's first pilot project to inject zero carbon hydrogen into a gas network to heat homes and businesses is now fully operational. UK's first grid-injected hydrogen pilot gets underway.

Ground-breaking UK hydrogen trial underway at Keele University. First time zero carbon hydrogen has been injected in the UK's modern gas grid; 20% hydrogen/natural gas blend can cut CO2 emissions without the need to change gas appliances.

The UK's first live pilot to inject zero carbon hydrogen into a gas network to heat homes and businesses is now fully operational.

HyDeploy is a ground-breaking green energy trial at Keele University, Staffordshire, that could help Britain cut its carbon emissions and open the door to a low-carbon hydrogen economy.

The HyDeploy demonstration is injecting up to 20% (by volume) of hydrogen into Keele University's existing natural gas network, feeding 100 homes and 30 faculty buildings. The 20% hydrogen blend is the highest in Europe, together with a similar project being run by Engie in Northern France.

Backed by Ofgem's Network Innovation Competition, the £7 million project is led by Cadent in partnership with Northern Gas Networks, Keele University, the Health and Safety Executive (HSE) Science Division, integrated hydrogen energy systems manufacturer ITM-Power, and independent clean energy company Progressive Energy.

Nov 19th, ''19: The company and Iwatani Corporation of America ("ICA"), a wholly owned subsidiary of Iwatani Corporation (8088: Tokyo Stock Exchange) are pleased to announce that the two companies have signed a collaboration agreement for the deployment of multi MW electrolyser based hydrogen energy systems in North America.

ITM Power and ICA have a shared vision to reduce pollutants and improve air quality by offering renewable hydrogen to the transportation, energy storage and renewable energy sectors in North America. The collaboration agreement enables the companies to share opportunities and, where a commercial case exists, work together on an exclusive basis to deploy ITM Power's world leading PEM electrolysers and Iwatani's leading gas handling and deployment solutions.

Oct 3rd, '19: The company is pleased to announce its intention to raise at least £52.0 million (before expenses) through (i) a strategic investment of £38.0 million at 40 pence per share by Linde UK Holdings No. 2 Limited, a member of the Linde AG group (Linde) (the Share Subscription); and (ii) a conditional placing of £14.0 million at 40 pence per share (the Firm Placed Shares) with certain existing and new institutional investors (the Firm Placing). The Group has also entered into a 50/50 joint venture with Linde (the Joint Venture) which will focus on delivering green hydrogen to large scale industrial projects, principally those with an installed electrolyser capacity of 10 Megawatts ("MW") and above.

In addition to the Firm Placing and the Share Subscription, the Group intends to raise up to c.£6.8 million through an Open Offer (the Open Offer) of 17,053,126 New Ordinary Shares at 40 pence per share (the Open Offer Shares).

The net proceeds of the fundraising will be used principally to enhance the manufacturing capabilities of the Group, particularly for the development and production of large scale 5MW electrolysers, to facilitate product standardisation and manufacturing cost reduction, to fund its initial financial contribution to the Joint Venture, and provide working capital and balance sheet strength to support the delivery of the contract backlog and opportunity pipeline.

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.

Aug 23rd, '19: The company is pleased to note the announcements today by BOC and the Australian Government via the Australian Renewable Energy Agency ("ARENA") of its support for a project for BOC to produce hydrogen from renewable energy at its Bulwer Island gas facility in Brisbane. ITM Power is supplying the 220kW electrolyser. The full text of today's announcement by ARENA is set out below.

Support for renewable hydrogen production in Brisbane

The future of hydrogen as an alternate energy source continues to develop under the Liberal National Government.

The Liberal National Government, with the Australian Renewable Energy Agency (ARENA), is supporting gas company BOC to produce hydrogen from renewable energy at its Bulwer Island gas facility in Brisbane.

The pilot project will involve the installation of a 220 kW electrolyser and a 100 kW solar array to produce up to 2400 kilograms of renewable hydrogen via electrolysis per month. The project will utilise the existing industrial gas equipment and infrastructure onsite.

The project also includes a vehicle refuelling station in Brisbane. In addition to supplying BOC's existing industrial customers, 50kg per day of renewable hydrogen will be produced by BOC for the refuelling station.

The Government through ARENA has provided $950,000 in grant funding towards the $3.1 million project. By some estimates, global annual demand for hydrogen as an energy source is expected to grow from around 1 million tonnes at the present day, to around 35 million tonnes by 2040.

Today's announcement builds on the more than $100 million the Government has already invested in hydrogen projects around Australia.

June 27th, '19: The company is pleased to announce the opening yesterday of Gasunie's Hystock green hydrogen plant in Veendam near Groningen in the Netherlands. Gasunie manages and maintains the infrastructure for the large-scale transport and storage of gas in the Netherlands and the northern part of Germany. ITM Power supplied the 1MW PEM electrolyser system which will use renewable energy and water to generate hydrogen. The electrolyser is located at EnergyStock's Zuidwending salt cavern storage facility in northern Netherlands, and the generated hydrogen will be either used on-site or dispensed into tube trailers for supply to future hydrogen refuelling stations.

Since large-scale transport and storage of hydrogen is expected to be easy, reliable and affordable, hydrogen can play a key role as a clean energy carrier for manufacturing, mobility and the built environment. Converting electricity into hydrogen is a way of using the expected future surpluses of sustainable electricity. HyStock is the start of the future hydrogen market and therefore helps to achieve the goal of making the Netherlands and Europe carbon-neutral.

May 7th, '19: The company is pleased to announce the extension of the UK refuelling collaboration agreement with Shell, which was originally announced on 10 September 2015. The new agreement will run until 2024, and covers the refuelling of all types of hydrogen vehicles; from passenger cars to commercial vehicles, including buses, trucks, trains and ships.

Currently ITM Power operates two hydrogen refuelling stations (HRS) at Shell service stations at both Shell Cobham on the M25 and Shell Beaconsfield on the M40. Four further HRS are funded. The HRS at Shell Gatwick is under construction and will be opened later this year; Shell Derby will also follow in 2019, with two further London stations also planned. The UK hydrogen refuelling station network has been jointly funded by the UK's Office for Low Emission Vehicles and the Fuel Cells and Hydrogen Joint Undertaking.

Independent analysis (11 pgs.) Link