ITM Power, the energy storage and clean fuel company, announces an update on trading and operations for the period since its Half-Year Results announcement on 29th January 2015.
The results for the year to 30th April 2015 will be announced at the end of July and are expected to be in line with projections at a pre-tax level.
The company currently has £12.91m of projects under contract and a further £2.80m of contracts in the final stages of negotiation. This reflects the successful conclusion of a number of negotiations. In March 2015, the company received £4.9m as a strategic investment from JCB.
As the company builds up more operating experience, project timetables will be forecast with greater clarity, which, in turn, will result in revenue forecasts becoming more accurate. ITM Power’s key strategic goal is to become cash flow positive in the shortest period possible and the company has successfully prevented the cost base materially increasing despite revenues rising significantly over the last two years.
ITM Power has a rapidly developing pipeline of qualified quotes for its two principal products. These larger scale platforms are becoming the most prevalent source of income and also make up the bulk of enquiries the company is now receiving.
As of today, the company has fifteen products at its Sheffield headquarters either ready to ship, undergoing factory acceptance testing (FAT) or in manufacture, of which five are Hpac 40 products and ten are larger scale products. Product cost reduction is being achieved through both manufacturing efficiencies and reduced materials costs.
The company launched its new 1MW stack module at the Hannover Messe in April 2015. The module consists of three 350kW PEM stacks in a single, compact skid. The response from the market has been very encouraging and ITM Power is actively developing numerous projects with a view to deployment in both refuelling and energy storage applications.
The new stack is a significant strand in ITM Power’s development activity and will extend the company’s reach to higher capacity applications, such as multi MW Power-to-Gas. The main advantages to the stack module are the ability to fit more electrolysis into a smaller footprint, an important consideration when addressing multi MW installations, and enabling plant simplification through the use of fewer stacks in products.
While developing this larger stack platform, the company has benefitted from the operational experience of its previous stack platform which has been successfully exposed to very demanding Power-to-Gas applications.
Power-to-Gas in Germany
ITM Power now has two large scale Power-to-Gas plants operational in Germany, one with the Thüga Group and the other with RWE. These are the only Power-to-Gas projects utilising PEM electrolysis deployed in the world and reflects the company’s focus on one of its target territories. ITM Power is delighted that it has both won these contracts and that they continue to provide valuable field data.
ITM Power is also working closely with technical institutions in Germany where wider energy storage and renewable chemistry projects are underway at pilot scale using the company’s HPac platform.
German subsidiary, ITM Power GmbH, has now employed its first full time engineer, Jochen Ludwig (Dipl.-Ing TH), to help install, commission and service the company’s equipment in Germany in addition to supporting business development activities. Jochen will work closely with the existing after sales support team headed by Dr Matt Lees, based in Sheffield.
The size of the German Power-to-Gas market is predicted to be 46GW in 2030 and between 115 to 170GW in 2050 as detailed in the recent EU report “Commercialisation of energy storage in Europe” which received contributions from 32 companies and organisations and supported by the European Commission.
The company has also made similar impressive progress in the hydrogen market.
Graham Cooley, CEO, ITM Power PLC, commented: “This update reflects a very busy time for the company. Customer engagement with our energy storage and grid balancing products and with our hydrogen refuellers is at an all-time high. The project and quotation pipeline as a result has been steadily growing in both applications.”
“ITM Power enjoys a strong foothold in Germany with its PEM Power-to-Gas technology and is building a valuable portfolio of refuelling stations in the UK centred on London, which will provide strong commercial experience in the manufacture, deployment and operation of Hydrogen Refuelling Stations.”
For the full report from ITM Power go to www.itm-power.com