Hydrogen specialist ITM Power is ‘significantly’ expanding its factory in Sheffield as it gears up to meet global demand.
The energy storage and clean fuel company is set to install two new test bays for its 1MW power-to-gas units, and a new electricity substation, to clear a bottleneck in its testing regime.
HGas units convert solar and wind energy into hydrogen which can be pumped into the natural gas system used in the UK in factories and homes.
They also help overcome the problem of too much renewable electricity being produced for the electricity grid to accept.
The move reflects the rise in orders - and contracts in negotiation - which stands at nearly £10m today.
Dr Simon Bourne, chief technology officer, said: “Increased throughput and decreased lead times are now vital as we plan for the larger demand volumes that we are experiencing and expecting to continue.
“As the company’s manufacturing schedule fills up, it has been important to ensure capacity can match demand.
“A series of sub-assemblies have been designed and accredited subcontractors have been identified and are increasingly being used as part of the manufacturing process.
“Together, they can currently handle a product turnover of approximately £100m per annum.”
ITM, based on Atlas Way, Sheffield, makes equipment that uses electrolysis to create hydrogen from electricity and water using
As well as power-to-gas units, it manufactures refuelling stations for hydrogen cars and hydrogen generators.
The firm has won contracts in Germany and California and is building a hydrogen vehicle refuelling station at the Advanced Manufacturing Research Centre in Rotherham.
The company has also identified a site where electrolysers of up to 5MW can be tested, adding further expansion potential.
Dr Bourne added: “Plans for expansion beyond the new, enhanced manufacturing capacity are now also in place.”
In August, the firm revealed it lost £8m in the last year.