Tag Archives: ITM Power

TSB and DECC R&D Hydrogen and fuel cell technologies.

The Technology Strategy Board, the UK’s innovation agency, and the Department of Energy and Climate Change (DECC), are funding five new projects that are researching and developing hydrogen and fuel cell technologies. These government-backed projects want to bring hydrogen and fuel cell technologies into everyday use so they are using research and development to speed up the adoption of energy systems using hydrogen en fuel cell technologies.

They want to develop whole systems and they want to show that fuel cell systems and hydrogen technologies can work together with other energy and transport component such as renewable energy generation, refueling infrastructure and vehicles. So energy and transport components can be integrated with the fuel cell systems and hydrogen technologies. These technologies can also be used in low carbon energy systems and transport.

Mark Prisk, Business Minister, said that the UK has innovative business developing world-leading hydrogen and fuel cell technologies. The UK wants to capture a share of the global market by developing a coherent capability and vibrant industry. If they are in the position to capture that share of the market, they will be able to attract international partnerships and inward investment. This will also cause a growth of the national economy and create job opportunities. These five new projects complement the already joint government/industry project called UK H2 Mobility. This project is currently evaluating potential roll-out scenarios for hydrogen for transport in the UK.

Greg Barker, Energy and Climate Change Minister, said that hydrogen and fuel-cell technologies are at the cutting edge of new low carbon energy solutions. It is important to see how these technologies can be integrated with other energy and transport products and it are these new and exciting government-supported projects that will look into that. He also said that he is looking forward to seeing the results.

The five new projects were selected through a competitive process and will be led by Air Products plc, BOC Ltd, ITM Power (Trading), Rutland Management Ltd and SSE plc. The projects will:

  • Create the UK’s first end-to-end, integrated, green hydrogen production, distribution and retailing system. This will be centered around a fully publically accessible, state-of-the-art 700 bar renewable H2 refueling station network across London (Air Products Plc).
  • Deliver solar energy generated hydrogen for Swindon’s exiting public access H2 refueling station. This will happen via an electrolyser. And its use in materials handling vehicles and light vans at Honda’s manufacturing plant (BOC Ltd).
  • Integrate an electrolyser based refueller with renewable energy on the Isle of Wight. This will enable zero carbon hydrogen to be produced for use as transport fuel for a range of vehicles (ITM Power).
  • Demonstrate a viable solar-hydrogen energy system through the 24/7 provision of green electricity and heat. The benefits will be shared by multiple end users of a business park in Surrey (Rutland Management Ltd).
  • Demonstrate a whole renewable hydrogen system, connecting a 1MWe electrolyser to the grid. This is in conjunction with an Aberdeenshire wind farm. They want to explore the grid impacts and energy storage potential of hydrogen generation, and provide green hydrogen produced to power a fleet of fuel cell buses (SSE plc).

Iain Gray, Chief Executive of the Technology Strategy Board, added that these innovative, large-scale demonstrators will show how fuel cells and hydrogen technologies can be adapted, developed and integrated to provide real-time and real-world low carbon solutions. These projects will also show how the Technology Strategy Board can help the UK businesses to accelerate the development and commercialization of technological innovations.

A grant funding of £9 million is provided by the Technology Strategy Board and DECC. This means the total value of the projects, including contributions from the industrial partners, is in excess of £19 million. The projects are building on previous Government support for fuel cells and hydrogen systems, accelerating the process towards commercialization.

ITM Power and their plans

ITM Power, a clean fuel firm based in Sheffield, wants to fund its growth, and they are planning to do this by raising up to £9m through share issues. The company develops and sells electrolyster technology to turn electricity into hydrogen gas. The company already raised £5m by issuing 10 million new ordinary shares at 50p per share to institutional investors and non-executive director Peter Hargreaves. Via an open offer, they want to issue another eight million shares. This could take the total money raised to around £8.9m.

Non-executive chairman of ITM Power, Roger Putnam, said that this is a crucial time for the development of the company. It’s important for the company to have a strong balance sheet so the on-going commercial relationships can be supported and stay supported. He said that he was very delighted that Peter Hargreaves, the existing institutional shareholders, and some new institutions showed their commitment to the company in this funding round.

Since the first pack of issued shares was just for the institutional investors, the board felt like this is unfair for the existing shareholders. That’s why they are making an open offer of shares to the existing shareholders at the same price at the offer of shares to the institutional investors. The existing shareholders need this opportunity to keep participating alongside the institutional shareholders.

Yesterday, the company also revealed its annual results. This year it includes the first significant revenue of £480.000. The company says that their outlook is positive with early revenue streams developing.

Professor Putnam said that ITM power has successfully positioned itself from a platform of commercially launched electrolyster products.  Now they can address the clear opportunities within energy storage and clean fuel generation from renewable power to help build a greener environment and Smart Cities within the UK.

ITM Power is now also at the heart of two initiatives that will define the deployment of hydrogen fuel and energy systems in the UK, UKH2Mobility and Ecoisland.

They came to this point by working so hard to develop and build key relationships. The Technology Strategy Board granted a £1.3m grant to ITM Power to fund a hydrogen
storage and vehicle refueling system on the
Isle of Wight, part of the project called Ecoisland. And as a member of UKH2Mobility, ITM Power helps to ensure that the UK is well positioned for the commercial roll-out of hydrogen fuel cell electric vehicles.