ITM Power PLC Met Police Fuel Contract, Refuelling Update (3372K)

TIDMITM

RNS Number : 3372K

ITM Power PLC

10 April 2018

10 April 2018

ITM Power plc

("ITM Power" or the "Company")

Fuel Contract with the Metropolitan Police

ITM Power's UK Electrolyser Generating Capacity to hit 3Tonne/day, 1kTonne/year, for transport fuel

ITM Power (AIM: ITM), the energy storage and clean fuel company, is pleased to announce the signing of a fuel contract with the Metropolitan Police and to provide an update to shareholders on progress with hydrogen generation and refuelling station capacity in its UK network.

On 26 March 2018 ITM Power announced it will receive GBP4.3m out of a total GBP8.8m OLEV funding to deliver the largest expansion of hydrogen refuelling infrastructure ever undertaken in the UK, and the roll out of 200 new Fuel Cell Electric Vehicles (FCEVs) over the next 12 months. The project includes FCEVs being procured by emergency services such as the Metropolitan Police. ITM Power is now pleased to announce the signing of a fuel contract to supply hydrogen to the Met Police's new fleet of FCEVs.

About the Metropolitan Police Fleet

The Met is committed, alongside the Mayor, to making their service as environmentally friendly as possible and a big part of that work is ensuring that the fleet is green. Since late 2015 the Met have been actively exploring ways to hybridise and electrify their fleet as well as exploring other new technologies such as hydrogen. This is enabling the Met to make great strides towards their ambition of procuring 550 vehicles as zero or ultra-low emission by 2020.

Jiggs Bharij, Head of Fleet Services, Metropolitan Police said; "We are working closely with ITM Power to roll out our new fleet of zero emission vehicles. The quick refuelling time, comparable to that of a traditional internal combustion engine vehicle, and long driving range make Toyota's hydrogen powered fuel cell electric vehicle an ideal zero emission response vehicle."

Jon Hunt, Alternative Fuels Manager, Toyota GB said: "We are delighted that the Met Police have selected the Toyota Mirai as the new zero emission response vehicle of choice. The emergency services, taxi fleets, and other return to base vehicle operators are important early adopters of hydrogen technology which will help pave the way for more widespread adoption of FCEVs."

ITM Power CEO, Dr. Graham Cooley, said: "I am delighted to announce our continued partnership with the Met Police in assisting with the roll out of their new fleet of FCEV response vehicles. This demonstrates significant progress in ITM Power's strategic objective of providing refuelling services to operators of return to base FCEV fleets with heavy cycle usage. Establishing the infrastructure necessary to support these types of users is a first step in building out a national network of green hydrogen refuelling stations, which is an essential precursor to the large-scale adoption of FCEVs in the longer term. Working alongside our partners, Shell, Toyota, Honda and Hyundai, we are now in a strong position to lead this large-scale adoption in the UK."

Update on ITM Power's HRS Network

ITM Power currently has 12 wholly owned Hydrogen Refuelling Station (HRS) assets in its UK portfolio. Five are open to the public and three are already under construction and due to open at the end of Q2 2018. Four further stations, now fully funded and in the planning stages, are due to open at the end of Q1 2019. These stations have been funded by the European Fuel Cells and Hydrogen Joint Undertaking (the FCH JU), Innovate UK and the UK Office for Low Emission Vehicles (OLEV).

ITM Power's HRSs incorporate on-site hydrogen production via electrolysis together with compression, storage and dispensing equipment. The total hydrogen generation capacity (electrolyser capacity) of all these HRSs when fully deployed will be 3,000 kg/day (3.0 Tonnes/day). The dispensing capacity will be deliberately oversized at 7,300 kg/day (7.3 Tonnes/day). This combined with the on-site hydrogen storage will support peak refuelling events often associated with rush hour traffic, and continued expansion in on-site production in step with continued vehicle roll out. This approach minimises initial HRS costs while optimizing refuelling logistics during busy periods.

FCEV Vehicle Fleet

The Toyota Mirai has a fuel tank with a capacity of 5kg which provides a range of c.300 miles. Based on an average number of vehicle miles driven per year in the UK of 7,900 miles, each FCEV could be expected to use c.130kg of hydrogen per annum, for which ITM Power is currently paid GBP10+VAT/kg.

The next wave of FCEV deployment sees 200 extra vehicles rolling out in the UK over the next 12 months, and the majority of these vehicle users are expected to consist of high mileage users, such as taxis and the emergency services. All ITM Power HRSs are based on electrolytic hydrogen generated on site. Where possible ITM Power is exploring options to increase the range of vehicle types that can be refuelled; in Birmingham, for example, the same electrolyser generation station will have refuelling areas for both FCEV passenger cars and buses.

Sylvie Childs, Senior Product Manager, Hyundai Motor UK said: "Hyundai is pleased to support the continued development of the UK hydrogen refuelling infrastructure, which will enable mainstream adoption of fuel cell vehicles. Greater adoption will significantly reduce the costs of clean mobility making it more viable to more people. Working with ITM Power we feel there is a strong momentum towards hydrogen which is clearly illustrated by the recent opening of the UK's first 'under the canopy' hydrogen refuelling station at Beaconsfield Services. We are looking forward to introducing our all-new semi-autonomous 500-mile range fuel cell vehicle, NEXO, to the UK market early next year."

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

About Innovate UK

Innovate UK is the UK's innovation agency; working with people, companies and partner organisations to find and drive the science and technology innovations that will grow the UK economy. The organisation works to determine which science and technology developments will drive future economic growth; meet UK innovators with great ideas in the fields we're focused on funding the strongest opportunities; connect innovators with the right partners they need to succeed help our innovators launch, build and grow successful businesses. Since 2007 we have invested over GBP1.5 billion in innovation, matched by a further GBP1.5 billion in partner and business funding. We have helped more than 5,000 innovative companies in projects estimated to add GBP7.5 billion to the UK economy and create 35,000 extra new jobs.

About OLEV

The HRS Infrastructure Grants Scheme was launched on the 2nd February 2015 by the Office for Low Emission Vehicles (OLEV) to support roll out of hydrogen infrastructure networks in the UK with the specific aim of encouraging the introduction of Hydrogen Fuel Cell Electric Vehicles (FCEVs). The HRS Infrastructure Grants Scheme will provide grant funding for selected infrastructure projects seeding development of hydrogen for road transport in the UK.

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April 10, 2018 02:00 ET (06:00 GMT)