Motive Ltd - a new Joint Venture with Vitol
ITM Power plc
(“ITM Power”, “the Group” or the “Company”)
ITM Power Partners with Vitol for Hydrogen Refuelling
Commitment to invest up to £30m from Vitol, matched by ITM Power, to grow Motive
ITM Power (AIM: ITM), the energy storage and clean fuel company, announces that it has concluded a strategic partnership agreement with Vitol Holdings SARL (“Vitol”) for wholly owned subsidiary ITM Motive Limited, trading as Motive, to become a 50/50 joint-venture owned between ITM Power and Vitol.
Vitol is a leader in the energy sector with a presence across the spectrum: from oil through to gas, power, renewables and carbon. Vitol will invest up to £30m in the venture, which will be matched by a similar investment from ITM Power. Motive owns all UK public hydrogen refuelling stations constructed by ITM Power. It was set up as a Group division in 2020 and became a separate legal entity in May 2021. On completion it will operate as a distinct entity with its own board, which will comprise three directors from ITM Power and three from Vitol.
As part of the transaction, Motive has entered into a framework agreement with ITM Power, under which Motive appoints ITM Power as its preferred supplier for up to 240 MW of electrolysis equipment to support Motive with the development and roll-out of new green hydrogen refuelling stations. Motive has also appointed Vitol as its preferred supplier for up to 240 MW of electricity demand, which will provide green power to the network of new refuelling stations.
Both ITM Power and Vitol believe that the market for Hydrogen in Transport is on the cusp of rapid expansion, supported by government incentives to accelerate transportation decarbonisation. This partnership will help facilitate the rapid scaling up of production, distribution and demand stimulation for Hydrogen to Transportation. Vitol is aligned with Motive’s strategy to target building large refuelling stations for heavy duty vehicles, such as trucks and buses. Over the past 18 months, Motive has been working to develop deep relationships with a small number of blue-chip heavy goods users in the UK and aims to develop standard 4 MW sites around the UK.
Graham Cooley, CEO, ITM Power PLC and a Director of ITM Motive said: “The establishment of a joint-venture between ITM Power and Vitol brings another valuable strategic partner to the Group. Vitol’s scale and market reach, combined with our expertise, will provide Motive with a pathway to become a much larger and more valuable business with multiple options in due course for realising value for our shareholders.”
Chris Bake, head of origination, Vitol, added: “Vitol aims to be at the heart of the energy transition. Hydrogen has a key role to play in decarbonising transport and ITM Power’s leading proprietary Gigastack electrolysers can produce green hydrogen at scale and cost efficiently. Our partnership will enable us to build Motive into a gas-for-transport company for the future, complementing our other sustainable transport initiatives, from LNG/biogas network Liquind, through to fleet EV solutions.”
For further information please visit www.itm-power.com or contact:
ITM Power plc
James Collins, Investor Relations +44 (0)114 551 1205
Justin Scarborough, Investor Relations +44 (0)114 551 1080
Investec Bank plc (Nominated Adviser and Broker)
Jeremy Ellis / Chris Sim / Ben Griffiths +44 (0)20 7597 5970
Tavistock (Financial PR and IR)
Simon Hudson / Tim Pearson / David Cracknell +44 (0)20 7920 3150
About ITM Power PLC:
ITM Power 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 £58.8m fundraising, including an investment by Linde of £38m, together with the formation of a joint venture to deliver renewable hydrogen to large-scale industrial projects worldwide. In November 2020, ITM Power completed a £172m fundraising, including a £30m investment by Snam, one of the world's leading energy infrastructure operators. In January 2021, the Company received an order for the world's then largest PEM electrolyser of 24MW from Linde. In October 2021, the Company, with Linde, announced the deployment of a 100MW electrolyser at Shell's Rhineland refinery, following the start-up of an initial 10MW facility at the site. In November 2021, ITM Power raised £250m to accelerate expansion.
ITM Power operates from the world's largest electrolyser factory in Sheffield with a capacity of 1GW (1,000MW) per annum, with the announced intention to build a second UK Gigafactory in Sheffield with a capacity of 1.5GW expected to be fully operational by the end of 2023. The Group's first international facility, expected to have a capacity of 2.5GW per annum, is intended to be operational by the end of 2024, bringing total Group capacity to 5GW per annum. 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.
Vitol is a leader in the energy sector with a presence across the spectrum: from oil through to gas, power, renewables and carbon.
Vitol’s clients include leading industrial companies, national oil companies, utilities and a broad range of energy market participants. Founded in Rotterdam in 1966, Vitol today serves clients from some 40 offices worldwide and is invested in energy assets globally including: circa 16m m3 of storage, 500 k b/d of refining capacity, 6,800 service stations, 3.3 GW thermal power generation, and $1.3 bn capital committed to renewable investments. Revenues in 2020 were $140 billion.