ITM Power PLC £8.8m OLEV Funding for Refuelling Infrastructure (8954I)

TIDMITM

RNS Number : 8954I

ITM Power PLC

26 March 2018

26 March 2018

ITM Power plc

("ITM Power" or the "Company")

GBP8.8m OLEV funding to deliver the largest expansion of hydrogen refuelling infrastructure ever undertaken in the UK

ITM Power (AIM: ITM), the energy storage and clean fuel company, is pleased to announce that a consortium including ITM Power, Shell, Toyota, Honda and Hyundai has won GBP8.8 million in funding from the Department for Transport "DfT" to improve access to an expanded network of hydrogen refuelling stations to support the continued roll out of hydrogen fuel cell electric vehicles (FCEVs) in the UK. Out of the GBP8.8 million total, ITM Power will receive GBP4.3m from the DfT to build four new hydrogen refuelling stations and to upgrade five existing hydrogen refuelling stations to increase capacity to support a larger fleet of FCEVs. The project has further funding support from the European Fuel Cells and Hydrogen Joint Undertaking (FCH JU).

Further details are provided in the Operations Update released today, and the DfT announcement is reproduced in full below:

NEW GREENER POLICE CARS TO RUN ON HYDROGEN

Police cars and taxis will be among nearly 200 new hydrogen powered vehicles switching to zero emission miles, thanks to a multimillion pound Government boost.

The zero emission vehicles are part of a project that has won GBP8.8 million in funding from the Department for Transport to improve access to hydrogen refuelling stations up and down the country and increase the number of hydrogen cars on our roads from this summer.

The winning project, is run by a consortium managed by Element Energy and including expertise from ITM Power, Shell, Toyota, Honda and Hyundai. It will capitalise on the reliable mileage of established fleets and see vehicles being procured by emergency services such as the Metropolitan Police, as well as Green Tomato Cars and Europcar to support the growth of refuelling infrastructure for hydrogen vehicles up and down the country.

Roads Minister, Jesse Norman said: "Decarbonising our roads is an essential part of meeting our climate targets. The innovative new technologies involved present great opportunities for our increasingly low carbon economy.

"Hydrogen has huge potential, especially for those making longer journeys and clocking up high mileage. That is what makes this project truly exciting. Not only is it demonstrating the technology in action, but it is also developing the refuelling infrastructure needed for the future."

The project helps cement the UK's place as a world-leader in adopting hydrogen technology, using not only British expertise through ITM Power, but also securing further investment from multi-national companies such as Shell, Toyota, Honda, and Hyundai.

It also means that hydrogen cars will be able to travel further around Britain than ever before, with new refuelling stations in Southwark, Isleworth, Birmingham and Derby paving the way for future expansion.

The GBP8.8 million grant will be matched by a further GBP13.1m investment including support from the companies and other sources. The project will involve the procurement of new vehicles, construction of new stations and upgrades to existing stations.

Dr Graham Cooley, CEO, ITM Power plc said: "This project will deliver the largest expansion of the hydrogen refuelling infrastructure ever undertaken in the UK and is a very significant step forward for the UK hydrogen industry. The project will fund ITM Power to build four new hydrogen refuelling stations and upgrade five further stations. Our partnership with Shell, Toyota, Honda, and Hyundai constitutes a highly coordinated roll out of hydrogen vehicles and refuelling infrastructure."

Paul Van der Burgh, President & Managing Director, Toyota GB said: "This is a result of close collaboration across sectors and a significant vote of confidence from the Government in the benefits of Fuel Cell technology. The programme is welcome support in our efforts to popularize FCEVs and help realize a hydrogen-based society"

Oliver Bishop, General Manager of Hydrogen at Shell, said: "Hydrogen has the potential to become a significant part of the transport mix in a low-carbon future. Central to this success is collaboration between the Government, energy companies, OEMs and technology experts to create the infrastructure to make access to new fuel options viable. At Shell, we are delighted to be part of the latest infrastructure funding effort, and to help drive forward the UK's hydrogen refuelling network."

The increased range offered by hydrogen cars for longer journeys makes them a good option for those regularly driving long distances, with refuelling times comparable to diesel or petrol vehicles, and emitting only water from the tailpipes.

Fuel cell electric vehicles (FCEVs) are powered by electricity generated on-board the vehicle from hydrogen fuel passing through a fuel cell stack. This means they do not need recharging and instead, the driver refills the tank at a hydrogen refuelling station, in the same way they might do with a petrol and diesel car.

In addition the stations do not need any deliveries, instead they are able to produce the hydrogen on site from excess and renewable energy therefore also making the production process emission free.

For further information please visit www.itm-power.com or contact:

 
ITM Power plc 
 Andy Allen, CFO                              [phone] 
Investec Bank plc (Nominated Adviser and 
 Broker) 
 Corporate Finance: Jeremy Ellis / Jonathan 
 Wynn 
 Corporate Broking: Chris Sim / Rob Baker     [phone] 
Tavistock (Financial PR and IR) 
 Simon Hudson / James Collins                 [phone] 
 

About ITM Power plc

ITM Power manufactures integrated hydrogen energy solutions which are rapid response and high pressure that meet the requirements for grid balancing and energy storage services, and for the production of clean fuel for transport, renewable heat and chemicals. ITM Power plc was admitted to the AIM market of the London Stock Exchange in 2004. The Company received GBP4.9m as a strategic investment from JCB in March 2015. The Company signed a forecourt siting agreement with Shell in September 2015. The Company currently has GBP33.3m of projects under contract and a further GBP5.5m of contracts in the final stages of negotiation constituting a total backlog of GBP38.9m (subject to exchange rate variation).

About the FCH JU

The Fuel Cells and Hydrogen Joint Undertaking (FCH JU) is a unique public-private partnership supporting research, technological development and demonstration activities in fuel cell and hydrogen energy technologies in Europe. Its aim is to accelerate the market introduction of these technologies, realising their potential as an instrument in achieving a carbon-lean energy system. The three members of the FCH JU are the European Commission; the fuel cell and hydrogen industries, represented by the NEW industry grouping; and the research community, represented by research grouping N.ERGHY. http://www.fch.europa.eu/

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March 26, 2018 04:41 ET (08:41 GMT)