News

ITM Power Trading Update – Record Backlog

16 December 2021

A half-yearly update covering backlog, financials, major contracts, corporate highlights, and future trading outlook.

16 December 2021

ITM Power plc

(“ITM Power” or the “Company”)

ITM Power Trading Update – Record Backlog

ITM Power (AIM: ITM), the energy storage and clean fuel company, has announced its work-in-progress, contracts backlog and tender pipeline alongside unaudited financial results for the six months to 31 October 2021.

Highlights:

  • Record backlog of 499MW as at 1 Dec – up 61% since Sep 2021
  • Contracted: 62MW compared to 43MW in Sep
  • In negotiation: 339MW compared to 169MW in Sep
  • Preferred supplier: 98MW (unchanged versus Sep)
  • Tender pipeline of 909MW compared to 1,011MW in September 2021 – as large volume contracts move to the negotiation stage.

New Contract Awards:

  • Refhyne II consortium – of which ITM is a member – was awarded a grant of €32.4m by CINEA (the European Climate, Infrastructure and Environment Executive Agency) for the development of a 100 MW electrolyser at Shell’s Energy and Chemicals Park, Rhineland. The project will see an engineering design phase which will be followed by a final investment decision (FID) expected in late 2022 with delivery then scheduled for 2024
  • Contract signed for delivery of 12MW of electrolysis equipment to be deployed in 2022 (and recognised in the 2022/23 financial year)
  • In November, UK Government Investment was secured for Phase 1 of ScottishPower's 20 MW Whitelee Windfarm hydrogen production and storage facility
  • New Projects under negotiation of approximately 200 MW

Corporate:

  • Successful £250m fund raise completed post period end in November
  • Site for the second 1.5 GW UK factory acquired in Sheffield
  • First overseas factory of 2.5 GW to follow (to create 5 GW of capacity by the end of 2024)
  • Continued strengthening of Management Team with the following senior appointments:
    • Martin Clay, Operations Director, formerly MD of Kostal UK Ltd
    • Nadia Sparrow, Head of Procurement, formerly Head of UK Procurement at Alstom
    • Helen Baker, Company Secretary, formerly Head of Secretariat at Coca-Cola Europacific Partners plc
    • Chris Yewdall, Projects Director, formerly Head of PMO (Project Management Office) at Rolls Royce plc

Unaudited Financials for the six months to 31 October:

  • Revenue of £4.1m (2020: £0.2m)
  • Gross loss of £2.4m (2020: loss of £2.8m)
  • Adjusted EBITDA loss of £13.0m (2020: loss of £10.4m)
  • Net cash at half-year-end of £166.6m excludes net £242m raised in November
  • Cash burn of £12.0m (£14.0m)

Outlook:

  • Full year guidance of 33-50 MW maintained, with revenue still expected to be heavily weighted to H2 as previously indicated
  • Continued growth in tender pipeline and backlog expected
  • Planning for manufacturing capacity expansion accelerating including work on identification of the location for our first overseas factory

“Today’s update provides a compelling endorsement of how fast our markets are growing and our decision to raise further funds to increase capacity domestically and internationally to take full advantage of this growth,” said Dr Graham Cooley, CEO of ITM Power.

“Together with our partners, we believe we can gain a material market share as a result of our experience, expertise and capacity to help industry to decarbonise using green hydrogen.”

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)
+44 (0)20 7597 5970 Jeremy Ellis / Chris Sim / Ben Griffiths

Tavistock (Financial PR and IR)
+44 (0)20 7920 3150 Simon Hudson / David Cracknell / Tim Pearson

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.

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