“Significant progress has been achieved over the last six months.”

That’s the message from Roger Putnum, ITM Power’s Chairman, as the UK-based business revealed its half-year results for the period ending 31st October (2018) today.

As of today, £23.2m ($29.6m) of projects are under contract and a further £10.4m ($13.3m) are in the final stages of negotiation, making a total backlog of £33.6m ($42.9m).

The energy storage specialists’ tender opportunity pipeline has grown steadily and is now more than £240m ($306.2m), representing 36 commercial tender responses within the last 12 months. The average project size of £6m ($7.7m) reflects strong industrial demand for larger systems.

Hydrogen sales, with a new total of 29 hydrogen fuel contracts, totalled £295k ($376k) over the last 12 months, with the strongest demand from London-based taxi service Green Tomato Cars and the Metropolitan Police.

ITM Power opened its seventh UK hydrogen refuelling station in Swindon, next to the M4, in September 2018. The company said its Gatwick and Derby hydrogen stations are under construction and due to open at the end of Q1 2019.

ITM Power opens 7th hydrogen station

Other highlights include:

  • UK Government funding received for 100MW Power-to-Gas energy storage feasibility study in Cheshire.
  • Green light given for HyDeploy trial and further funding received for HyDeploy phase 2.
  • Strategic partnership agreed with Sumitomo Corporation, covering Japan and Australasia, with commercial discussions continuing to progress as expected.

Financial

ITM Power’s total income stands at £5m ($6.4m), compared with £4.4m ($5.6m) from the previous half-year results, with revenue at £1.2m ($1.5m). Grant income plus grants receivable for capital projects is £3.8m ($4.9m).

The company said revenue is expected to be weighted towards the second half of the year with an increased value of contracts expected, as in previous years.

ITM Power has a £5.3m ($6.8m) loss from operations, which it says is greater than originally anticipated due to cost overruns on four first-of-a-kind projects as well as significant investments made in people, resources and capacity during the period.

It also has a strong balance sheet with total financial assets constituting £24.9m ($31.8m) - £15.6m ($19.9m) of cash, £1.7m ($2.2m) of cash on guarantee and deployed working capital (debtors less creditors) of £7.6m ($9.7m).

Speaking about the results, CEO Graham Cooley said, “The six months under review have been a major transition for the company having expanded the skill base and delivered many MW scale industrial deployments. The company is highly regarded internationally, and solid progress is being made on all fronts.”

Chairman Roger Putnum added, “The Board is pleased with the significant progress that has been achieved over the last six months. Deploying increasing numbers of MW scale equipment in challenging industrial environments has certainly proved the company’s credentials to many industrial partners and we look forward to a very busy second half.”

According to gasworld’s Senior Business Analyst Jonny Dearden, “The merchant market for hydrogen in the UK currently stands at just below $100m (£78.4m). This has grown by an annual average increase of just below 4% a year over the last decade. We expect this stable growth  to continue over the next five years, at an annual average increase of upwards of 3%.”