ITM seeks new funds for growth

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Sheffield-based green energy company ITM Power is set to raise almost £9 million from investors.

News of the fundraising drive comes a day after the company revealed it was to spearead the Ecoisland project on the Isle of Wight, the UK’s largest single sustainable energy project.

It also came as the company announced it had made its first significant revenues, despite recording a pre-tax loss of £6.5 million for the year to the end of April.

Non-executive director Peter Hargreaves and a number of institutional investors have agreed to buy £5 million worth of new shares in the company, which develops technology that produces hydrogen from water, so that it can be used in fuel cells, domestic gas supplies and to power conventional internal combustion engines.

The company is raising a further £3.9 million by selling more shares on the open market.

ITM says the money raised will be used to improve its balance sheet and its ability to develop income streams as well as funding development of energy storage and vehicle power technology and market development.

Chairman Prof Roger Putnam said: “ITM Power is now participating in consortia that include very large multinational companies with which we are now establishing and strengthening working relationships.

“It also means that our expertise is now in demand from other companies seeking to enter the hydrogen space and, as a result, our participation in projects is being sought, rather than ITM Power having to spend time and effort fighting to join consortia.

“We have now arrived at a tipping point, both for hydrogen and ITM Power, from which wide scale adoption and an acceleration in our own commercial traction will follow. ITM Power has successfully positioned itself to address the clear commercial opportunities within energy storage and clean fuel generation from renewable power.”