ITM Power’s build, own, operate subsidiary Hydropulse has secured its first preliminary deal for a 150MW green hydrogen plant with an unnamed European oil refinery.
The heads of terms would see Hydropulse build the 150MW plant based on ITM’s €50m ($56m) 50MW Alpha PEM electrolyser platform under a 10-year green hydrogen supply agreement.
The companies are currently undertaking a front-end engineering design study as they target a final investment decision in 2027 and hydrogen production in 2029.
Under the project structure, the refinery will provide the project site and utilities, including power, with Hydropulse responsible for engineering, procurement, construction, commissioning, operation, and maintenance.
The companies are currently in project financing discussions with banks.
It comes as the first project for the ITM subsidiary, which was launched last year as a way to generate long-term recurring revenues for the electrolyser maker.
“This project demonstrates the scale and potential of our BOO model,” said ITM CEO Dennis Schulz. “If progressed to definitive agreements, it would represent our largest commercial commitment to date and establish a material long-term contract revenue stream for the group.”
ITM previously said Hydropulse would focus on small- to mid-sized projects with between 2MW and 10MW using its containerised electrolyser units.
The intention was to develop a dense “network” of plants allowing Hydropulse to onboard additional hydrogen customers while developing dedicated on-site systems.
However, Schulz said in a short investor presentation that the project aligns with growing regulatory pressure from the EU’s Renewable Energy Directive (RED) III, which will require 42% of industrial hydrogen volumes to be renewable fuels of non-biological origin, including green hydrogen, 2030.
He also said the EU’s emissions trading scheme was making fossil-based hydrogen production “increasingly expensive” as free allowances are phased out.
“As a consequence, refineries are emerging as a primary customer for us,” Schulz said.
The agreement comes despite concerns that the EU could scrap the binding post-2030
RED III targets, which lobby groups warned could see refinery electrolyser orders cancelled.
