First Injection of Hydrogen into German Gas Grid

RNS Announcement

RNS Number : 6226U

ITM Power PLC

04 December 2013

4 December 2013

ITM Power plc

("ITM Power" or "the Company")

Injection of Hydrogen into the German Gas Distribution Grid

ITM Power (AIM:ITM), the energy storage and clean fuel company, is pleased to announce that, with its partners Mainova Aktiengesellschaft and NRM Netzdienste Rhein-Main GmbH, the Company has injected hydrogen into the German gas distribution network. The ITM Power rapid response electrolyser plant has been delivered and commissioned ahead of schedule and the compliance and permitting work has been completed to enable the incorporation of hydrogen via the compliant mixing plant.

According to an announcement made in Germany by the Thüga Group:

"During the current commissioning phase of the Thüga Group's power-to-gas demonstration plant, the system injected the first ever electrolytically generated hydrogen into the Frankfurt am Main gas distribution network. This represents the first ever plant to convert electricity into hydrogen and subsequently inject the hydrogen into the German gas distribution network. "The system worked as planned, so much so that we will go into trial operation in the very near future ahead of final commissioning at the start of 2014" Michael Riechel, Member of the Board of Thüga Aktiengesellschaft said.

By the end of 2016, the partners will have gained experience of how the system works under real-world conditions. The project partners are badenova AG & Co. KG, Erdgas Mittelsachsen GmbH, Energieversorgung Mittelrhein GmbH, erdgas schwaben gmbh, ESWE Versorgungs AG, Gasversorgung Westerwald GmbH, Mainova Aktiengesellschaft, Stadtwerke Ansbach GmbH, Stadtwerke Bad Hersfeld GmbH, Thüga Energienetze GmbH, WEMAG AG, e-rp GmbH and Thüga Aktiengesellschaft, which acts as project coordinator. The operational phase will be accompanied by scientific partners, whose involvement is being funded by the Hessian Ministry for the Environment, Energy, Agriculture and Consumer Protection.

H2 Injection without Compression

The core of the system is an ITM Power proton exchange membrane (PEM) electrolyser. The electrolyser converts electrical energy into chemical energy, which in turn facilitates the storage of electricity. A gas mixing plant ensures that the proportion of hydrogen in the natural gas stream does not exceed two per cent by volume, the technically permissible maximum value when a natural gas filling station is situated in the local distribution network. The electrolyser supplies the hydrogen-methane mixture at the same pressure as the gas distribution network, namely 3.5 bar. "We were thus able to avoid using a compressor and save costs," said Riechel.

The plant is located on the premises of Mainova Aktiengesellschaft in Schielestraße in Frankfurt am Main. The project partners decided to deploy a PEM system, as this technology, in comparison with alkaline systems, uses water rather than a potassium hydroxide solution, and is therefore more environmentally friendly. In addition, the system can respond more quickly to changes in the electrical load. A further advantage is the unit's compact design (2.45m high, 6m long, 3.30m wide, weighing 10 tons). The power consumption of the electrolyser is 315 kilowatts. It produces about 60 cubic meters per hour of hydrogen and thus in one hour can feed 3,000 cubic meters of hydrogen-enriched natural gas into the network.

Power-to-Gas Project Platform

13 companies of the Thüga Group have combined their collective know-how and capital in a project platform to invest jointly in the development of power-to-gas storage technology. The focus is on testing the feasibility of power-to-gas technology. The companies are confident that in the long-term, this offers the greatest potential for storing excess renewable energy. To this end, the group is collectively developing, building and operating its own demonstration plant in Frankfurt am Main over a three-year period (2012 - 2016). The plant converts electricity into hydrogen and then stores this in the gas distribution network. Overall, the partners will invest more than €1.5m. The project is financially supported by the Hessian Ministry for the Environment, Energy, Agriculture and Consumer Protection. Following the first phase of this project, the partners will consider a second project, in which hydrogen will be generated and combined with carbon dioxide to form synthetic methane to be directly injected and stored in the natural gas grid. For more information see www.energie-und-wende.de."

ITM Power has deployed its PEM Electrolysis P2G plant at the Mainova Aktiengesellschaft site in Schielestrasse, Frankfurt am Main where the compliant gas mixing and grid injection infrastructure designed and built by NRM was already in place. This plant is part of the Thüga Group's Power-to-Gas (P2G) project as previously reported, which was jointly commissioned by 13 partners within the Thüga Group to investigate P2G energy storage. The install also includes a monitoring facility and visitor's reception so that members of the Thüga Group can examine the performance of the plant.

Phil Doran, MD of ITM Power GmbH commented: "ITM Power is delighted to be have performed the first ever injection of hydrogen into the German gas grid using a PEM electrolyser with our partners in the Thüga Group, and look forward to the official commissioning early next year."

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

ITM Power plc

Graham Cooley, CEO

0114 244 5111

Zeus Capital

Tim Metcalfe (Nominated Adviser)

John Goold (Institutional Sales)

020 7533 7727

Tavistock Communications

Simon Hudson / James Collins

020 7920 3150

About NRM Netzdienste Rhein Main GmbH:

As the network subsidiary of Mainova AG, NRM Netzdienste Rhein Main GmbH is responsible for the planning, construction and operation of distribution networks for electricity, natural gas, and heat and water in Frankfurt and the surrounding area as well as the Main-Spessart region. NRM is the central contact for all technical and commercial issues surrounding the distribution networks for energy traders, downstream network operators and end users.

About Thüga Group:

450 cities and boroughs with responsibility for the living environment of around eight million people have brought together their 100 municipal energy and water utility companies to form the Thüga Group. The aim is to create added value for each environmental area and to secure local values long-term through their collaboration. In total the Thüga Group employs 18,100 staff. They provide almost 3.6 million customers with electricity, around 2.1 million customers with natural gas and 0.9 million customers with drinking water. The turnover of the Thüga network in 2012 was 22.3 billion euros. The Thüga Group is Germany's largest municipal network of local and regional energy suppliers. The roles are clearly allocated within the Thüga Group: the 100 partners take care of active marketing efforts with their local and regional brands. Thüga - financial partner of the cities and boroughs and, in this capacity, minority shareholder in the partner companies - is the core element of the group and is tasked with business development: attracting new partners, value retention and development of the company, coordination and facilitation of projects as well as control of collaboration in the group.

About ITM Power plc:

ITM Power plc was admitted to the AIM market of the London Stock Exchange in 2004 and raised its initial funding of £10m gross in its IPO. Further funding rounds of £28.5m in 2006, £5.4m in 2012 and £2m in 2013 have been completed. The Company has now made the transition from a research and development company to a product manufacturer and technology provider. The Company has both a strong base of intellectual property and engineering expertise for providing complete hydrogen solutions. The Company has been successful in developing strategic industry partnerships in the following projects:

First Refuelling Station Sale in the US

http://www.itm-power.com/news-item/first-refuelling-station-sale-in-the-us/

ITM Power Joins Californian Hydrogen Business Council Hydrogen Energy Storage (HES) Program

http://www.itm-power.com/news-item/itm-power-joins-californian-hydrogen-business-council-hydrogen-energy-storage-hes-program/

German Energy Agency Power to Gas Strategy Platform

http://www.itm-power.com/news-item/itm-power-joins-german-energy-agencys-power-to-gas-strategy-platform/

Incorporation of ITM Power ApS Denmark

http://www.itm-power.com/news-item/incorporation-of-itm-power-aps-in-denmark/

Participation in H2USA

http://www.itm-power.com/news-item/participation-in-h2usa/

Participation in North Sea Power-to-Gas Platform

http://www.itm-power.com/news-item/participation-in-north-sea-power-to-gas-platform/