ITM Power PLC (AIM:ITM) shares rose 7% to 100.5p after its Hydropulse subsidiary signed preliminary terms with a European oil refinery for a 150 megawatt green hydrogen project that could become the group’s largest commercial commitment to date.
The proposed development would use ITM Power’s Alpha electrolyser platform to produce green hydrogen on site under a 10-year agreement.
Hydropulse and the unnamed refinery are already progressing a Front End Engineering Design study, which develops the technical and cost framework for the project ahead of a final investment decision targeted for 2027.
Hydrogen production is expected to begin in 2029 if the project proceeds to definitive agreements and receives the necessary approvals and financing.
The project is planned to be built, owned and operated by Hydropulse, providing ITM Power with long-term contracted and recurring revenue rather than relying solely on equipment sales.
The refinery is expected to provide the site and utilities, including electricity, which ITM Power said would reduce Hydropulse’s exposure to movements in power prices.
ITM Power is also in discussions with banks over project-level financing as it looks to expand Hydropulse without requiring substantial amounts of capital from the wider group.
Chief executive Dennis Schulz said the project demonstrated the scale of the build, own and operate model and could establish a material long-term contracted revenue stream for ITM Power.
Hydropulse forms part of ITM Power’s strategy to supply hydrogen directly to industrial customers alongside its core business of designing and manufacturing electrolysers for green hydrogen production.
—UPDATED TO ADD SHARE PRICE—
