Electrolyser manufacturer ITM Power has created a joint venture with commodity trader Vitol called ITM Motive that will own all the UK public hydrogen refuelling stations built by the former.

Both firms will invest up to £30mn ($39.6mn) in the venture, which will operate as a distinct entity with its own board comprising three directors from ITM Power and three from Vitol.

ITM Motive has simultaneously entered into a framework agreement with ITM Power, under which the latter will be its preferred supplier for up to 240MW of electrolysis equipment to support the rollout of green hydrogen refuelling stations. ITM Motive has also appointed Vitol as its preferred supplier for up to 240MW of the required green power for the network of new refuelling stations.

ITM Motive has been working with haulage firms in the UK over the past 18 months with the goal of developing eight sites in the UK—five around London, and one in each in Swindon, Birmingham and Sheffield—for heavy-duty vehicles.

“Hydrogen has a key role to play in decarbonising transport” Bake, Vitol

Both ITM Power and Vitol believe demand for hydrogen from the transport sector is on the cusp of rapid expansion thanks to government incentives. 

“Vitol’s scale and market reach, combined with our expertise, will provide ITM Motive with a pathway to becoming a much larger and more valuable business,” says Graham Cooley, CEO of ITM Power.

At the end of last year, ITM Power raised £250mn in equity financing to support the expansion of its manufacturing facilities to meet this growing demand.

Vitol also has a £3.3mn stake in Gen2 Energy, a Norwegian developer of green hydrogen production capacity.

“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,” says Chris Bake, head of origination at Vitol.

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Author: Tom Young