TIDMITM
RNS Number : 2379O
ITM Power PLC
09 June 2022
9 June 2022
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
ITM Power plc
("ITM", "ITM Power", the "Group" or the "Company")
Trading and Corporate Update
Development of ITM Power Service Hub in Germany
ITM Power (AIM: ITM), the energy storage and clean fuel company,
provides an update on the Group's progress since the publication of
the Half Year Report on 27 January 2022. The update covers work in
progress and the contracts backlog as well as unaudited financial
results expected for the year ended 30 April 2022 (FY22). The
Company will announce final results for the year on 8 August
2022.
Backlog:
-- Record backlog of 755 MW as at 1 June 2022, up by 53% since January and up by 160% yoy
o Contracted: 75 MW
o In negotiation: 342 MW
o Preferred supplier: 338 MW
Apr 22 MW Apr 21 MW % Change
Work in progress* 75 43 74%
Contracts backlog** 755 290 160%
*Work in progress Contracted backlog
**Contracts backlog Contracted backlog and contracts in the final
stages of negotiation and preferred supplier
backlog
Commercial and product developments:
-- 240 MW preferred supplier status of projects with Motive, our
50:50 JV with Vitol, to support the rollout of refuelling
infrastructure
-- The sale of a 24 MW electrolyser to Linde Engineering, which
is to be installed at a site operated by Yara Norge AS ("Yara")
located at Herøya outside Porsgrunn. The electrolyser equipment,
which will be used to produce green ammonia, will have revenue
recognised in FY23
-- Award of GBP9.3m for Gigatest from Department for Business,
Energy and Industrial Strategy (BEIS), under its Net Zero
Innovation Portfolio Low Carbon Hydrogen Supply 2 Competition, to
accelerate the commercial development of ITM Power's 5 MW Gigastack
platform and its manufacture
-- 4MW system sold to RWE at Lingen
-- Continuous product improvement - MEP 2.0 pressure increased
by 50% to 30 bar, GEP 1.0 on track for production at end of
2023
New 50/50 JV with Vitol:
-- Strategic partnership agreement with Vitol Holdings SARL for
wholly owned subsidiary ITM Motive Limited, trading as Motive
Fuels, to become a 50/50 joint-venture owned between ITM Power and
Vitol, including a framework agreement with ITM Power, under which
Motive appoints ITM Power as its preferred supplier for up to 240
MW of electrolysis equipment
Development of ITM Power Service:
-- Development of ITM Power Service, an aftermarket focussed
customer support business designed to provide full
product-life-cycle support of deployed electrolyser systems
-- Existing aftermarket operations including the Group's 24/7 UK
Remote Support Centre merged into one focussed organisation with
new headquarters in Germany
-- The organisation will be led by Philip Wilson as Technical
Director and Calum McConnell as Commercial Director, both long-term
ITM Power staff members
-- Lease signed on a 17,054 sqft three storey combined office,
control centre and warehouse facility in Linden, ideally located in
Hessen, which is a recognised transit state within Germany with
excellent motorway links and local infrastructure
-- The facility will house all spare parts, including core PEM
stack technology, to ensure high service levels and rapid
deployment capability to systems in Europe
-- Supported by EUR2.0m grant from the German government
Expected unaudited financial results for the twelve months to 30
April 2022:
-- Revenue of GBP5.5m (2021: GBP4.3m), impacted by:
o Deferral of 24 MW Leuna delivery of completed products and
therefore revenue recognition of approximately GBP11m into FY23
-- Adjusted EBITDA loss of c.GBP36.5m (GBP21.4m), impacted by:
o c.GBP7m Increased skills acquisition
o c.GBP14m project delivery & production ramp up
-- Cash Burn of c.GBP52m (GBP37.7m), impacted by:
o c.GBP7m Product Development of MEP 2.0 and GEP 1.0
o c.GBP20m Ongoing WIP and inventory build
o c.GBP5m Production equipment for Bessemer Park
-- Net cash at year-end of GBP364m (GBP176m)
Dr Graham Cooley, CEO of ITM Power, said: " Over the past year,
ITM Power has laid the foundations, financially and operationally,
to scale our production capacity which will play a critical role in
decarbonising economies using green hydrogen and enabling countries
around the world to enhance their energy and food security.
"Russia's invasion of Ukraine has accelerated the intent of many
countries to increase energy and food security, with a specific
focus on green hydrogen, as shown by the recent UK Government and
REPowerEU announcements. We believe we can gain a material share of
these global markets as a result of our experience, expertise,
partnerships and capacity ."
For further information please visit www.itm-power.com or
contact:
ITM Power plc
James Collins, Investor Relations +44 (0)114 551 1205
Justin Scarborough, Investor Relations +44 (0)114 551 1080
Investec Bank plc (Nominated Adviser
and Broker) +44 (0)20 7597 5970
Jeremy Ellis / Chris Sim / Ben
Griffiths
Tavistock (Financial PR and IR) +44 (0)20 7920 3150
Simon Hudson / David Cracknell
/ Tim Pearson
About ITM Power plc:
ITM Power manufactures integrated hydrogen energy solutions for
grid balancing, energy storage and the production of renewable
hydrogen for transport, renewable heat and chemicals. ITM Power PLC
was admitted to the AIM market of the London Stock Exchange in
2004.
ITM Power operates from the world's largest electrolyser factory
in Sheffield with a capacity of 1 GW (1,000 MW) per annum and has a
plan to grow capacity in line with demand to 5 GW per annum,
supported by a GBP250m equity raise in Q4 2021. Partners include
Linde, Shell, Snam, and Vitol among others.
-ends-
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