Zeus Capital Research Director Dr Tom McColm caught up with DirectorsTalk for an exclusive interview to discuss ITM Power plc (LON:ITM)
Q1: ITM Power, good news just keeps on flowing for these guys, Tom can you talk us through the recent RNS from ITM?
A1: Yes, I think it was yesterday, it was a good RNS for ITM. It was the announcement that the UK government, through the Office of Low Emissions Vehicles (OLEV), is putting a £23 million fund together specifically for the build out of hydrogen infrastructure and hydrogen fuelling infrastructure which is exactly one of the markets that ITM is targeting.
Q2: So, how is it significant then to ITM Power’s commercialisation effort?
A2: Yes, like I said and relevantly, ITM are very heavily involved using their electrolysis platform putting at the centre of hydrogen refuelling station technology, the UK being one of their main target markets. Now, £23 million actually doesn’t sound like a vast amount of money considering it comes from government but what’s excellent is it perfectly is positioned for ITM to go for it in the fact that they’ve pretty much central to all of the hydrogen refuelling infrastructure efforts that have gone on to date in the UK. I think they’ve rolled out 3 or 4 stations, they’ve got a pipeline of many more so it’s a great source of potential funding for ITM in getting that roll out moving.
Q3: In terms of news flow, what should we be looking out for ITM Power plc? What’s going to drive the share price in the near to medium-term?
A3: Absolutely, ITM have got through, I guess what you’d call the ‘valley of death’, they really are building a top line now. So, what to look out for is just more commercial announcements, particularly in their 2 main target markets which are hydrogen fuelling infrastructure and power-to-gas for the storage of intermittent renewables, looking for new projects in those 2 markets. Also, maybe the expansion of existing projects and moving to slightly larger orders, an order for ITM in the sort of tens of millions/tens of megawatt range in either of those markets will really set the thing going I think.
Q4: Is that feasible?
A4: Yes, I think so. We’re looking now at one station at a time at one half-megawatt trial project in the power-to-gas. The next steps in the power-to-gas would be one of the utilities or one of the larger customers saying we’re now going to do a multi-unit trial which would involve say 10/20 of those and that would get you there.