Intention to Purchase Site for Second Giga Factory

9 November 2021

ITM Power plc

("ITM", "ITM Power", the "Group" or the "Company")

Intention to Purchase Site in Sheffield for the Second UK Giga Factory

Collaboration with University of Sheffield

ITM Power (AIM: ITM), the energy storage and clean fuel company, is pleased to announce that it has reached agreement on Heads of Terms to acquire a site for the Company's second UK factory in Tinsley, Sheffield, from the University of Sheffield at a cost of £13.4m. The site is part of the University of Sheffield Innovation District, and close to the M1 motorway and public transport links. It is approximately 2 miles from the Group's existing Gigafactory and Technology Centre at Bessemer Park. The land has outline planning consent and a full design brief agreed with the City Council. The acquisition is subject to the grant of full planning permission for the new factory.

As set out at the time of the recent fundraise, ITM intends to build a second automated factory of some 260,000 sq. ft on the site with a capacity of 1.5 GW pa and currently expected to be fully operational by the end of 2023 to complement the existing 1 GW pa capacity at Bessemer Park.  The new factory will provide the template for the Group's first international facility, which is expected to have a capacity of 2.5 GW pa, expected to bring total Group electrolyser capacity to 5 GW per annum by the end of 2024. One of the key features of the second UK factory will be an enlarged power supply to test multiple modules of the Company's next generation product concurrently.

The overall cost of the new Sheffield factory is expected to be in the region of £50-55m. In addition to the land cost of £13.4m, the Company is currently allocating up to £16m for the construction of the shell, and a further £20-25m for the fit-out and power supply.

The new factory will also include office space for manufacturing staff and will be a low environmental impact building, using the best of current low carbon technologies. ITM Power will work closely with a developer, to be appointed once planning permission has been received, to incorporate low carbon footprint materials and facilities.

Collaboration with the University of Sheffield

At the COP26 Regional Roadshow - Accelerating a decarbonised South Yorkshire economy, being held later today at ITM Power's Gigafactory at Bessemer Park, Dr Graham Cooley and Professor Dave Petley will launch a collaboration between the Company and the University of Sheffield. At the heart of the collaboration is an intention to jointly develop a plan and apply for funding for a National Hydrogen Research, Innovation and Skills Centre, to be located at the University of Sheffield Innovation District (neighbouring ITM Power's proposed new site).

The initial focus of the collaboration will be the development of research, innovation and skills for the hydrogen sector, which is expected to include research into the safe and efficient manufacture of hydrogen using renewable energy and/or nuclear power production, research into product life cycle analysis as well as recycling and recovery of system components, research into improving hydrogen system manufacturing processes and research into the development use of digital twins and virtual reality tools (as already in use with ITM Power) to enhance manufacturing and after sales maintenance activities. In addition, the collaboration will study the creation of new jobs at all levels in the hydrogen sector as well as continuing career training and the promotion of hydrogen domestically and internationally.

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 focussed on increasing utilisation and throughput at our Bessemer Park Gigafactory as we prepare for the next step change in capacity."

Sir Roger Bone, Chairman of ITM Power, said: "The opportunity to partner with the University of Sheffield, recognised for its excellence in all aspects of industrial research, will enable both parties to train the next generation of hydrogen engineers and scientists, and continue to grow the company and the economy in the region. I look forward to seeing this relationship develop and prosper in the years ahead"

Professor Koen Lamberts, President and Vice-Chancellor of the University of Sheffield said: "We are very pleased to be launching this partnership with ITM Power. 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."

Professor Dave Petley, Vice-President for Innovation at the University of Sheffield said: "The University of Sheffield has world renowned expertise in energy innovation, and we recently announced a new Sustainable Aviation Fuels Innovation Centre, adjacent to our Translational Energy Research Centre, both housed at the University of Sheffield Innovation District. Our experience in bringing together academic research and industrial expertise is helping to solve the world's biggest problems, and our partnership with ITM Power to advance the hydrogen sector will help make net zero a reality."

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

About ITM Power plc:

ITM Power plc manufactures integrated hydrogen energy solutions for grid balancing, energy storage and the production of renewable hydrogen for transport, renewable heat and chemicals. ITM Power plc was admitted to the AIM market of the London Stock Exchange in 2004. In October 2019, the Company announced the completion of a £58.8 million fundraising, including an investment by Linde of £38 million, together with the formation of a joint venture with Linde to focus on delivering renewable hydrogen to large-scale industrial projects worldwide. ITM Power signed a deal to deploy a 10MW electrolyser at Shell's Rhineland refinery. In November 2020, ITM Power completed a £172m fundraising, including a £30m investment by Snam, one of the world's leading energy infrastructure operators. ITM Power operates from the world's largest electrolyser factory in Sheffield with a capacity of 1GW (1,000MW) per annum. ITM Power received an order for the world's largest PEM electrolyser of 24MW from Linde in January 2021. Other customers and partners include Sumitomo, Ørsted, Phillips 66, Scottish Power, Siemens Gamesa, Cadent, Northern Gas Networks, Gasunie, RWE, Engie, GNVert, National Express, Toyota, Hyundai and Anglo American among others.    

About the University of Sheffield

With almost 29,000 of the brightest students from over 140 countries, learning alongside over 1,200 of the best academics from across the globe, the University of Sheffield is one of the world's leading universities.

A member of the UK's prestigious Russell Group of leading research-led institutions, Sheffield offers world-class teaching and research excellence across a wide range of disciplines.

Unified by the power of discovery and understanding, staff and students at the university are committed to finding new ways to transform the world we live in.

Sheffield is the only university to feature in The Sunday Times 100 Best Not-For-Profit Organisations to Work For 2018 and for the last eight years has been ranked in the top five UK universities for Student Satisfaction by Times Higher Education.

Sheffield has six Nobel Prize winners among former staff and students and its alumni go on to hold positions of great responsibility and influence all over the world, making significant contributions in their chosen fields.

Global research partners and clients include Boeing, Rolls-Royce, Unilever, AstraZeneca, GlaxoSmithKline, Siemens and Airbus, as well as many UK and overseas government agencies and charitable foundations.

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