Green energy technology business ITM Power is raising £10 million to develop its facilities in the UK, USA and Germany.
The Sheffield-based company is placing 33 million new ordinary shares on the Alternative Investment Market and says the money will allow it to exploit rapidly growing opportunities for its “power to gas” and hydrogen refuelling technologies.
ITM’s power to gas technology centres around using electricity from renewable sources to split water into hydrogen and oxygen.
The hydrogen can then be injected into the gas distribution network for use by domestic and industrial customers.
Its refuelling technology, meanwhile, can be used to provide fuel for Fuel Cell Electric Vehicles – or FCEVs – ranging from cars, trucks and buses to marine craft.
ITM chief executive Dr Graham Cooley said: “We are able to deliver our technology internationally to these two markets, which we believe are set for significant growth.
“We are delighted to welcome some new institutions on to the ITM register and are equally delighted with the support from our existing shareholders.”
News of the fundraising came as ITM published its results for the six months to the end of October.
Revenues increased from nothing for the same period in 2013 to £700,000, reflecting the completion of a substantial proportion of a power-to-gas project in Germany.
Meanwhile, ITM reduced pre-tax loses from £3.7 million to £3.3 million.
During the period the company secured contracts for £4.5 million worth of its products with a further £4 million of project income secured or under negotiation.
Dr Cooley said: “In the last two years, ITM Power has transformed its business by migrating from the sale of small hydrogen equipment to large scale electrolyser plant installations.
“Having done so, we have demonstrated the successful application of our technology, the strength of our engineering capability, and our ability to deliver on the projects we undertake.
“Today we are a proven player in this dynamic industry and as a result, ITM Power is well placed to capitalise on the growing global demand for energy storage.”
Chairman Prof Roger Putnam said: “We are aggressively pursuing opportunities to reinforce our position as a global leader in energy storage and clean fuel, and we seek to turn that position into increased revenues for the company as our markets mature and become mainstream.
“We are pleased with the progress made to date and look forward to an active second half of the year.”
Successes during the year included the company securing its first contract to deliver a hydrogen refuelling station to California and delivering and commissioning a rapid response electrolyser plant in Germany ahead of schedule to enable the first-ever electrolytically generated hydrogen to be injected into Frankfurt’s gas distribution network.