UK electrolyser manufacturer ITM Power has acquired a site for its second factory in Tinsley, Sheffield.

ITM intends to build a factory on the site capable of producing 1.5GW/yr of electrolysers that it hopes to be fully operational by the end of 2023.

The site will be in addition to ITM’s 1GW/yr facility at nearby Bessemer Park, completed in January.

The overall cost of the new Sheffield factory is expected to be £50-55mn ($68-74mn). In addition to the £13.4mn cost of the land, the company is allocating up to £16mn for the construction of the shell and £20-25mn for the equipment and power supply.

Last month, the firm raised £250mn in equity financing to support the expansion of its manufacturing facilities.

A third international facility, expected to have a capacity of 2.5GW/yr, will bring the firm’s total electrolyser manufacturing capacity to 5GW/yr by the end of 2024.

Growing orders

In September, ITM reported that sales revenues were up 30pc on an annual basis for the 2021 financial year, to £4.28mn, mainly thanks to two major projects—an electrolyser for Shell at its Rhineland Refinery in Germany, and a design and proof of concept project commissioned by the UK government.

5 GW/yr – ITM’s targeted manufacturing capability by 2024

ITM said it was seeing a growing orderbook thanks to the proliferation of national hydrogen strategies.

The company has entered a strategic partnership with industrial gases firm Linde, and will provide a planned 24MW electrolyser to supply green hydrogen to Linde’s industrial customers around the Leuna chemical complex in Germany.

ITM also has a commercial partnership agreement with Italian energy infrastructure firm Snam that includes preferred supplier status for the first 100MW of Snam’s proton-exchange-membrane electrolyser orders for delivery by 2025.

Skills partnership

ITM also announced plans at Cop26 this week in conjunction with the University of Sheffield for a National Hydrogen Research, Innovation and Skills Centre, to be located at the University of Sheffield Innovation District. The two bodies will seek government funding for the facility.

“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,” says ITM chairman Roger Bone.

---

Author: Tom Young