ITM Power is set to buy a site on the old Sheffield Airport runway from Sheffield University for its second Gigafactory.
Demand for the company’s electrolysers is soaring as clean burning hydrogen takes centre stage in the race to net zero carbon emissions.
The firm has agreed terms to buy the land subject to planning permission and an enlarged power supply.
It is expected to be fully operational by the end of 2023.
ITM Power’s first Gigafactory, at Bessemer Park, Tinsley, is claimed to be the largest of its type in the world.
Gigafactory 2.0 will be bigger still, with 50 per cent more production capacity, it says.
ITM Power makes electrolysers that split water to create hydrogen, a carbon-free fuel that can be burned in cars, homes and in industry.
The firm and the university also plan to open a National Hydrogen Research Innovation and Skills centre, researching the safe and efficient manufacture of hydrogen using low or zero carbon sources of energy.
Dr Graham Cooley, CEO of ITM Power, said: “I am delighted to be working more closely with the University of Sheffield and delighted that our second UK factory site is in Sheffield. Both initiatives will support the local economy through job creation and supply chain support.
“The planning and construction of our second, 1.5 GW capacity, factory marks the next step on delivering our strategic plan to create a blueprint for an automated PEM electrolyser manufacturing facility to be rolled out internationally.
“At the same time, we are also focused on increasing utilisation and throughput at our Bessemer Park Gigafactory as we prepare for the next step change in capacity.”
Prof Koen Lamberts, president and vice-chancellor of the University of Sheffield said: “Hydrogen is one of the most exciting and promising clean energy solutions and ITM is at the forefront of green hydrogen manufacturing. This partnership is a milestone for both partners and the region in leading the way to achieving net zero through technological innovation.”