ITM Power has secured a substantial £86.5 million boost in government support, marking a notable moment in Britain’s push toward cleaner energy. The package brings together both direct funding and strategic investment, with GB Energy taking an ownership stake in the electrolyzer specialist.
At the heart of the deal sits a £46.5 million grant from the Department for Energy Security and Net Zero, led by Ed Miliband. Alongside that, GB Energy has committed £40 million in exchange for a 10.4 percent share in the company, a move that not only injects capital but also signals long-term confidence in hydrogen as part of the UK’s energy mix.
Founded in 2000 and listed on London’s AIM market just four years later, ITM Power has steadily built its reputation in a field that is equal parts promising and uncertain. Its core business revolves around designing and manufacturing electrolyzers, systems that use electricity and water to generate green hydrogen. This fuel, often described as a cornerstone of future clean energy systems, continues to attract both excitement and scrutiny in equal measure.
Looking ahead, the company plans to expand its manufacturing capabilities by developing the Chronos production line, which will be installed at its existing site in Sheffield. If timelines hold, the facility is expected to become operational in 2028, adding a new layer of scale with an annual production capacity of 1 gigawatt for its next-generation stack technology.
Markets responded quickly. Shares in ITM Power rose over 11 percent, reaching 71.77 pence, part of a rally of about 150 percent over the past year. Still, the financial outlook has tension: ITM anticipates year-end cash reserves of £210–215 million, an improvement from earlier forecasts, yet previously reported a £45 million annual loss despite record revenues.
The funding arrives against a politically charged backdrop. Since coming to power, the Labor Party has emphasized a decisive shift toward renewable energy, prioritizing green initiatives over fossil fuel expansion. Not everyone agrees. Reform UK, among others, has pushed for new oil and gas licensing in the North Sea, particularly in light of geopolitical instability following conflict involving Iran.
This latest investment is part of a broader strategy led by the Department for Energy Security and Net Zero, which is channeling funds through its Hydrogen Allocation Round program. The ambition is bold, perhaps deliberately so: to position Britain as a clean energy superpower. Supporting that vision, the government has already outlined plans to allocate £8.3 billion in taxpayer funding to GB Energy over the current five-year parliament.
Miliband said on Thursday: ‘Communities have long been calling out for a new generation of good industrial jobs, and with these plans we answer that call, helping to create an economy in which there is no need to leave your hometown just to find a decent job.
‘Thanks to this government’s commitment to clean energy, a generation of young people in our industrial heartlands can have well-paid secure jobs.’
He added: ‘This has only happened thanks to months of intense collaboration between Great British Energy, our publicly owned energy company, the government and ITM Power. It is time to make and build things in Britain again, and with this Government’s clean energy mission, we will.’
Dennis Schulz, chief executive of ITM Power, said clean power increasingly underpinned ‘energy sovereignty and resilience’.
