29 March 2018
ITM Power plc
("ITM Power" or the "Company")
Study to evaluate the large scale production and use of renewable hydrogen in British Columbia and its export to Japan and California
ITM Power (AIM: ITM), the energy storage and clean fuel company, is pleased to announce the award of a grant from the British Columbia Government Ministries of Energy, Mines and Petroleum Resources and Jobs, Trade and Technology to undertake a Power-to-Gas (P2G) feasibility study.
In the initial phase of the project, ITM Power will undertake a techno-economic feasibility study for the large scale centralized production of renewable hydrogen in the province of British Columbia (B.C.). Although the initial contract value of the feasibility study is relatively small, the project has the potential to be one of the largest of its kind globally, with total hydrogen electrolysis capacity of up to 300MW under considertion, to be used to supply both domestic and international export demand. Although currently, this project does not sit within ITM Power's opportunity pipeline, assuming a positive economic result of the feasibility study, a pilot plant will be considered for construction. Once fully financed, the contract value of the pilot plant will be added to ITM Power's opportunity pipeline. The project team includes ITM Power, Chiyoda Corporation, Mitsui & Co., Ltd. and G&S Budd Consulting Ltd. The project is due to commence in Q2 2018 and has a duration of 12 months.
There is a growing demand for hydrogen in parts of the world that are leading the transition away from conventional energy sources to renewable, clean energy for both motive and stationary power applications. British Columbia's grid is one of the cleanest in the world in terms of carbon emissions, with 92% of the power generated by hydro, and has competitive electricity rates. This positions B.C. as a strong candidate for production of renewable hydrogen generated via electrolysis.
Steve Jones, Managing Director of ITM Power Inc., commented: "ITM Power's technology is available today at the multi-MW level for utility customers. We are excited to be working with British Columbia and our other world leading partners to investigate the huge potential of large scale renewable hydrogen production, in a project that further endorses ITM Power's product strength and operational capability."
Dr. Graham Cooley, CEO of ITM Power plc commented: "This exciting project is another example, not only of the recognition and attention that the potential of hydrogen energy storage is attracting internationally, but also of ITM Power's global market leading technology and expertise necessary to support projects at this scale. This project also highlights the potential scale of ITM Power's addressable markets, the significant potential that sits behind our stated opportunity pipeline, and the cautious yet rigorous methodology we apply in calculating this figure. We look forward to working with our international partners to deliver a successful outcome for the project."
Michelle Mungall, British Columbia's Minister of Energy, Mines and Petroleum Resources, said: "This technology has the potential to make British Columbia a major player in the worldwide hydrogen economy. This project is a clear indicator that, as we move toward a strong, sustainable energy future, B.C.'s renewable and innovative clean energy resources make us an attractive destination for global investment."
For further information please visit www.itm-power.com or contact:
ITM Power plc Andy Allen, CFO |
+44 (0)114 244 5111 |
Investec Bank plc (Nominated Adviser and Broker) Corporate Finance: Jeremy Ellis / Jonathan Wynn Corporate Broking: Chris Sim / Rob Baker |
+44 (0)20 7597 5970 |
Tavistock (Financial PR and IR) Simon Hudson / James Collins |
+44 (0)20 7920 3150 |
About ITM Power
ITM Power manufactures integrated hydrogen energy solutions for grid balancing, energy storage and the production of green hydrogen for transport, renewable heat and chemicals. ITM Power was admitted to the AIM market of the London Stock Exchange in 2004. In September 2017 the Company announced the completion of a £29.4m working capital fundraise. The Company signed a forecourt siting agreement with Shell for hydrogen refuelling stations in September 2015 and subsequently a deal to deploy a 10MW electrolyser at Shell's Rhineland refinery. Additional customers include National Grid, RWE, Engie, BOC Linde, Toyota, Honda, Hyundai, Anglo American among others. The Company currently has £33.3m of projects under contract and a further £5.5m of contracts in the final stages of negotiation constituting a total of £38.9m, subject to exchange rate variations.
About Chiyoda Corporation
Chiyoda Corporation is an engineering firm headquartered in Japan that has developed and owns a technology of Liquid Organic Hydrogen Carrier (LOHC) which enables the storage and transportation of hydrogen under ambient temperature and pressure while utilizing existing oil infrastructure.
About Mitsui & Co., Ltd.:
Mitsui is one of the most diversified and comprehensive trading, investment and service enterprises in the world, with 138 offices in 66 countries as of Mar, 2018. Utilizing our global operating locations, network and information resources, Mitsui is multilaterally pursuing business that ranges from product sales, worldwide logistics and financing, through to the development of major international infrastructure and other projects in the following fields: Iron & Steel Products, Mineral & Metal Resources, Infrastructure Projects, Integrated Transportation Systems, Chemicals, Energy, Food, Food & Retail Management, Healthcare & Service, Consumer Business, IT & Communication Business, Corporate Development Business. Mitsui is actively taking on challenges for global business innovation around the world.
In addition, as part of efforts to achieve a low-carbon society, Mitsui is actively involved in environmental and renewable energy businesses including the creation of hydrogen supply chain system.
About British Columbia's Ministry of Energy, Mines and Petroleum Resources:
The Ministry of Energy, Mines and Petroleum Resources is responsible for British Columbia's electricity, alternative energy, oil, natural gas and related infrastructure, and the province's mining and mineral exploration sectors. These sectors are made up of diverse interests that explore for and produce oil, natural gas, coal and other valuable minerals and that develop electricity generation, transmission and distribution infrastructure, clean or renewable energy sources, including biomass, biogas, hydrogen, geothermal, hydro, solar, ocean, wind and low-carbon transportation fuels, and advance energy efficiency. Through teamwork and positive working relationships with its clients and stakeholders, the ministry facilitates thriving, safe, environmentally responsible and competitive natural gas, oil, energy and mining sectors in order to create jobs and economic growth in communities across the province.
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