ITM Power PLC UK government £23m fund to accelerate hydrogen infrastructure roll-out

ITM Power Plc

ITM Power PLC (LON:ITM), the energy storage and clean fuel company, have today noted the announcement made by the UK government’s Office of Low Emission Vehicles (OLEV) on 18 March. The full announcement is shown below. The Company currently has £17.41m of revenue under contract and £7.04m in the final stages of negotiation, making a total pipeline of £24.45m.
A new £23 million fund to accelerate the take up of hydrogen vehicles and roll out more cutting-edge infrastructure has been announced by the government today (18 March 2017). Hydrogen fuel providers will be able to bid for funding in partnership with organisations that produce hydrogen vehicles to help build high-tech infrastructure, including fuel stations. The funding will boost the creation of hydrogen fuel infrastructure and uptake of hydrogen-powered vehicles.

A competition will be launched this summer, and will invite proposals from public organisations, businesses and hydrogen operators. The government will provide match funding for successful bidders as part of its plans to cut carbon emissions, improve air quality and deliver economic opportunities for the UK.

Transport Minister John Hayes said: “The transition to zero emission road transport is both inevitable and desirable as it will improve air quality in many of our towns and cities. Hydrogen fuel cell electric vehicles can play a vital role alongside battery electric vehicles to help us cut harmful emissions. We know availability of hydrogen refuelling infrastructure can be a potential obstacle to the take up of hydrogen fuel cell electric vehicles. That’s why we’re providing support to give interested parties the confidence to continue to invest in this new emerging technology to help us achieve our ambition for almost all new cars and vans to be zero emission by 2040.

“Hydrogen vehicles can be quickly refuelled using a pump like a conventional petrol or diesel car, but instead use gas. They produce only water as a by-product and have a range of around 300 miles per tank, like conventional vehicles. The Government is working closely with industry on the future direction of the UK automotive sector and has allocated over £600 million for low emission vehicles over the course of this Parliament with an additional £390 million announced at last year’s Autumn Statement for ultra low emission vehicles and driverless cars.”

Paul Van der Burgh, President and Managing Director of Toyota (GB), said: “Toyota believes hydrogen fuel cell electric vehicles can play an important role in the transition to a low carbon, low emissions society. We chose the UK as one of the first international markets for our Mirai hydrogen fuel cell car and are pleased that the government is investing in this programme to encourage the further development of refuelling infrastructure and the wider uptake of fuel cell vehicles.

“We will continue to work with the Government, organisations and industry partners to help the UK realise the significant potential of hydrogen as a clean and sustainable source of power. Today’s announcement builds on the launch of the Industrial Strategy green paper published in January which outlined plans to fund new high-value economic infrastructure and reaffirmed government commitment to investing in energy innovation and to tackling the causes of climate change.”

ITM Power CEO, Dr. Graham Cooley, said: “This important new UK Government funding programme supporting the roll out of hydrogen vehicles is a welcome step and shows a commitment to tackling inner city air pollution. The increasing momentum generated by the introduction of Toyota, Honda and Hyundai FCEV’s into the UK is set to continue as a result of this significant infrastructure funding.”

Zeus Capital Analyst Dr Tom McColm said: Today’s RNS from ITM highlights continued governmental support for the roll out of hydrogen refueling infrastructure in the UK. A new £23m fund was announced by the Office for Low Emission Vehicles (‘OLEV’) on March 18th , from which hydrogen fuel providers will be able to bid for funding in partnership with organisations that produce hydrogen vehicles, to help build high-tech infrastructure, including fuel stations. The funding will boost the creation of hydrogen fueling infrastructure and uptake of hydrogen-powered vehicles. ITM’s state-of-the-art electrolysis platform lies at the centre of existing and future UK hydrogen fueling infrastructure roll-out, and with Toyota, Honda and Hyundai all now having introduced production hydrogen fuel cell electric vehicles (‘FCEVs’) into the UK, ITM is excellently positioned for continued infrastructure build out and market growth.

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ITM currently has £17.4m of projects under contract and £7.1m in final negotiation. This gives a total pipeline of c. £24.5m contracted or in final negotiation subject to exchange rate variation. This growing pipeline is evidence of ITM executing its strategy of embedding its technology in its primary target markets of scale renewables storage by power to gas (‘P2G’) and hydrogen fueling infrastructure at this key early stage of market evolution.

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