ITM Power hopes to raise almost £30m to help it tackle a £20m backlog of orders and capitalise on a £180m pipeline of ‘opportunities’
The Sheffield hydrogen power specialist has agreed two rounds of share placing worth £29.4m.
It will be used to complete £20m of orders, a further £16.7m of contracts in late stage of negotiation and an ‘opportunity pipeline’ worth £180m from more than 50 projects.
ITM Power, based in Attercliffe, makes hydrogen refuelling stations for vehicles and power-to-gas energy storage plants.
The firm is now set to move to new larger facilities.
Graham Cooley, chief executive, said: “We are delighted to disclose our £180 million opportunity pipeline of highly qualified tenders, which sits behind our growing backlog of contracted orders.
“This demonstrates significant traction for ITM Power’s products and the growing momentum in the hydrogen energy market overall. The £25 million placing and up to £4.4 million open offer considerably strengthens our balance sheet and should provide enhanced confidence to our customers on ITM Power’s ability to deliver future orders at increased scale.
“It should also enable us to unlock further efficiencies in our supply chain. We look forward to updating the market as opportunities are converted from pipeline to contracted sales, as we near our target of positive cashflow generation.”
ITM Power makes refuelling stations which run electricity through water, splitting it into hydrogen and oxygen.
Hydrogen cars produce electricity for their motors by re-combining the gas with oxygen from the air. The only waste product is water. And if refuelling stations use renewable energy - such as solar or wind - the whole process is carbon-free, producing no greenhouse gases and no soot.
ITM Power was featured in The Star’s Made in Sheffield series in June: