ITM Power sees losses widen amid joint venture optimism
Clean energy company ITM Power this morning reported a widened interim loss due to ongoing legacy issues related to the firm’s Shell Refhyne project.
The company, which manufactures hydrogen fuel storage cells, fell to a £8.3m loss, 84 per cent higher than last year’s £5.3m loss. This came despite ITM doubling its revenue to £2.4m.
Despite the loss, the firm said that its new joint venture with Irish manufacturing giant Linde will be “transformative” for the company.
The joint venture will focus on delivering green hydrogen to large scale industrial projects, and will diminish ITM’s exposure to future deployment risk and allow it to focus on its own developments.
So far the partnership has seen ITM raise £58.8m, which the firm said it had used to fund the continuing development of its 5 megawatt electrolyser module.
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As a result of the deal, the qualified tender opportunity pipeline is now over £248m, representing 37 projects with an average size of £6.7m.
Chief Executive Graham Cooley said: “The formation of the joint venture with Linde and the strategic investment that accompanied it is transformative for ITM.
“The company is now able to offer a full turnkey solution at industrial scale with the EPC competence of a world leader in the hydrogen industry. The opportunity to bid up to 1 gigwatts per annum of electrolysis equipment from Bessemer Park gives the company a powerful cost reduction trajectory.”
The company also announced changes to its board, with Sir Roger Bone replacing Roger Putnam as the chairman.
Roger Bone, a former diplomat, added: “I am delighted to take over from Roger Putnam as chairman of ITM Power and to oversee the integration of the Company’s activities with Linde Engineering into a successful joint venture.”
Shares in ITM fell 1.7 per cent in this morning’s trading.