ITM Power (AIM: ITM), the energy storage and clean fuel company, provides a trading update for the year to 30 April 2021. This update also includes progress on the contracts backlog and tender pipeline, the Bessemer Park Gigafactory, ITM Linde Electrolysis GmbH (“ILE”), ITM Motive, ITM Support and ITM Academy, as well as the outlook for the current financial year to 30 April 2022 and beyond.

Highlights:

Work in Progress* – +62% £35.4m (Apr 2021), £21.8m (Apr 2020)

Contracts backlog** – +194% £154.0m (Apr 2021), £52.4m (Apr 2020)

Tender pipeline ***- +131% £607m (Apr 2021), £263m (Apr 2020)

(*Work in Progress – Contracted backlog)

(**Contracts backlog – Contracted backlog and contracts in the final stages of negotiation and preferred supplier backlog)

(***Tender pipeline – Quotations submitted in response to commercial tenders in the last 12 months)

• Contracts backlog of £154.0m (£52.4m) constituting 290MW of electrolysers up 194% YoY
• £35.4m (£21.8m) Work in Progress up 62% YoY representing 43MW of electrolysers
• 10MW of the Work in Progress is the Refhyne project recognised on stage of completion
• The balance of the Work in Progress is expected to be delivered in FY22
• Tender pipeline of £607m (£263m), up 131% YoY, value to ITM Power is £364.2m
• Tender pipeline constitutes 593MW of potential electrolysis demand
• Bessemer Park Gigafactory positions ITM Power strongly to meet rapidly growing demand
• Installation of the 10MW Refhyne project completed, with inauguration on 2 July

Market Progress:

• Rapid hydrogen market development, with projects now at the 100MW scale
• Eight governments stated explicit electrolyser targets totalling 144GW by 2030
• Number of reports suggest further acceleration of hydrogen market development
• The IEA report “Net Zero by 2050: A roadmap for the Global Energy Sector” published on 18 May states that a “global electrolyser capacity of 3,585GW needed by 2050.”
• The Aurora “Hydrogen Market Attractiveness Report” published on 11 May states that the current pipeline of potential electrolysis projects is over 200 GW, 85% of which is in Europe

New Contract awards:

• 24MW sale to Linde Gas for the Leuna Chemical Complex in Germany
• Additional aggregate sales of 10MW across Germany, Austria, Japan, Tasmania and France
• New market sectors: semiconductors, multi MW scale wind coupling
• €5m EU funding for OYSTER (offshore electrolysis) with Orsted and Siemens Gamesa

New projects under negotiation or preferred supplier status:

• Partnership with Snam to develop projects with preferred supplier status for the first 100MW of electrolysers
• Planned 100MW expansion of Shell Refhyne to 110MW – subject to securing match funding
• Plans submitted for the 20MW Whitelee project in Glasgow with ScottishPower (Iberdrola)

Corporate:

• ITM Motive established as a separate company, wholly owned by ITM Power
• Tom Rae and Katherine Roe appointed as Non-Executive Directors of ITM Power
• Recruitment of key talent to maintain market leadership continues

Unaudited Financials:

• Expected Total Revenue £4.0m (£5.4m) for the year to 30 April 2021, impacted by Covid-19 and IFRS15 recognition rules
• EBITDA and EBIT losses for the year expected to be broadly in line with management expectations
• Cash position £176m (£41.0m) at year end 2021

Outlook:

• The Company currently expects to produce (and recognise revenue for) 50MW of electrolysers in the financial year ending 30 April 2022
• Of this, 33MW are already contracted in the backlog, with the balance of 17MW in advanced stages of contract negotiation
• Recognised revenue will be strongly weighted to the second half of the financial year given manufacturing lead times
• The Company now has significant manufacturing and operational capacity, and a blueprint to substantially increase that capacity, to address market demand for its developing suite of products as the market continues to move at pace towards large scale projects

Dr Graham Cooley, CEO, ITM Power plc, commented: “Traction in the electrolyser industry has been even more rapid than we were anticipating. At the same time, we moved into a gigawatt factory in January, which positions us strongly to meet rapidly growing global demand reflected in a contracts backlog and tender opportunity pipeline materially ahead of our original expectations. We are very much looking forward to welcoming customers and investors to a very busy Bessemer Park as soon as we are able.”

In the film below ITM Power CEO Graham Cooley provides an outline of ITM Power’s business and the future for the renewable energy sector