TIDMITM
RNS Number : 9106X
ITM Power PLC
30 November 2017
30 November 2017
ITM Power plc
("ITM Power", the "Group", the "Company")
Trading and Operations Update
Deal pipeline increased by GBP5.9m in the past two months
ITM Power (AIM: ITM), the energy storage and clean fuel company,
announces an update on trading and operations for the period since
the announcement of its successful placing and open offer on 29
September 2017. The Company maintains its focus on increasing
commercial sales and currently has GBP20.2m of projects under
contract and a further GBP22.4m of contracts in the final stages of
negotiation. The total of GBP42.6m is an increase of GBP5.9m in the
two months since the placing and open offer announcement.
Products in Build
ITM Power continues to process its current order book. Today,
the Company 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.
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.
Power-to-Gas; Energy Storage
The National Grid HyDeploy project is well underway and
excellent progress has been made across the programme. The HyDeploy
project seeks to address a key issue for the UK, namely how to
reduce the carbon footprint as a result of heating homes. The UK
has a world class gas grid delivering heat conveniently and safely
to over 83% of homes. Emissions could be reduced by lowering the
carbon content of gas through blending with hydrogen. HyDeploy is a
Network Innovation Competition (NIC) funded project which aims to
establish the level of hydrogen that can be safely blended with
natural gas for transport and use in the UK gas network.
ITM Power has started work 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 GBP25 million 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.
Hydrogen Refuelling Station (HRS) Deployment
ITM Power has a total HRS 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. A further
two HRS also have Fuel Cells and Hydrogen Joint Undertaking (FCH
JU) funding under the H2ME2 scheme. The UK refuelling network has
been financially supported by Innovate UK, Office for Low Emission
Vehicles (OLEV) and the FCH JU.
Planning permission has been granted for car and bus HRS at 19
sites in total with 14 different planning departments across the
UK. Business development activities in the clean fuel area are now
focussed on return-to-base commercial vehicles including buses,
trains, trucks and shipping. 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.
Industry Developments:
On 13 November the Hydrogen Council published a first-of-a kind
study detailing hydrogen's potential to be a key pillar of the
energy transition. The study concluded that when deployed at scale,
hydrogen could account for almost one-fifth of total final energy
consumed by 2050. This would reduce annual CO2 emissions by roughly
six gigatons compared to today's levels, and contribute roughly 20%
of the abatement required to limit global warming to two degrees
Celsius.
Marketing
The Company's marketing efforts have been focused on engagement
with multi-national companies which operate within the energy and
transport sectors. In addition, increasingly by invitation, ITM
Power attends and presents at many industry specific trade fairs
and conferences in the UK, mainland Europe and the United States. A
regularly updated list of all the events the company will be
attending can be found at
http://www.itm-power.com/news-media/events
Graham Cooley, CEO, commented, "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."
For further information please visit www.itm-power.com or
contact:
ITM Power plc
Andy Allen, CFO +44 (0)114 244 5111
Investec Bank plc (Nominated Adviser and
Broker)
Corporate Finance: Jeremy Ellis / Jonathan
Wynn
Corporate Broking: Chris Sim / Rob Baker +44 (0)20 7597 5970
Tavistock (Financial PR and IR)
Simon Hudson / James Collins +44 (0)20 7920 3150
About ITM Power plc
ITM Power manufactures integrated hydrogen energy solutions for
grid balancing, energy storage and the production of green hydrogen
for transport, renewable heat and chemicals. ITM Power was admitted
to the AIM market of the London Stock Exchange in 2004. In
September 2017 the Company announced the completion of a GBP29.4m
working capital fundraise. The Company signed a forecourt siting
agreement with Shell for hydrogen refuelling stations in September
2015 and subsequently a deal to deploy a 10MW electrolyser at
Shell's Rhineland refinery. Additional customers include National
Grid, RWE, Engie, BOC Linde, Toyota, Honda, Hyundai, Anglo American
among others. The Company currently has GBP20.2m of projects under
contract and a further GBP22.4m of contracts in the final stages of
negotiation making a total of GBP42.6m (subject to exchange rate
variation). http://www.itm-power.com/
About the FCH JU
The Fuel Cells and Hydrogen Joint Undertaking is a unique public
private partnership supporting research, technological development
and demonstration activities in fuel cell and hydrogen energy
technologies in Europe. Its aim is to accelerate the market
introduction of these technologies, realising their potential as an
instrument in achieving a carbon-lean energy system. The three
members of the FCH 2 JU are the European Commission, fuel cell and
hydrogen industries represented by the Industry Grouping Hydrogen
Europe and the research community represented by the Research
Grouping N.ERGHY. http://www.fch.europa.eu/
About the Hydrogen Council
The Hydrogen Council is a global initiative of leading energy,
transport and industry companies with a united vision and long-term
ambition for hydrogen to foster the energy transition. Launched at
the World Economic Forum 2017, in Davos, the growing coalition of
CEOs have the ambition to: Accelerate their significant investment
in the development and commercialization of the hydrogen and fuel
cell sectors. Encourage key stakeholders increase their backing of
hydrogen as part of the future energy mix with appropriate policies
and supporting schemes. In the first global initiative of its kind,
the Hydrogen Council is determined to position hydrogen among the
key solutions of the energy transition. The Council works with, and
provides recommendations to, a number of key stakeholders such as
policy makers, investors, international agencies and civil society
to achieve these goals. http://hydrogencouncil.com/
-ends-
This information is provided by RNS
The company news service from the London Stock Exchange
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