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ITM Power Shares Jump on 150 MW Hydrogen Refinery Deal

ITM Power's Build, Own, Operate arm has signed Heads of Terms with a European refinery for a 150 MW green hydrogen project, but a final investment decision is not due until 2027.

ITM Power (LON: ITM) shares jumped about 6% on Monday after its Hydropulse subsidiary signed Heads of Terms with a European oil refinery for a 150 MW green hydrogen project. ITM makes electrolysers, the equipment that produces green hydrogen.

The announcement came out this morning, and a presentation on the deal was available from 7:15am.

Hydropulse is ITM’s Build, Own, Operate (BOO) subsidiary. The project in development would use 150 MW of ITM’s Alpha electrolyser platform to produce green hydrogen on site for the refinery, which the company has not named, under a 10-year agreement.

Chief executive Dennis Schulz said the scale is what matters to the company:

“This is an important milestone for our company. At 150 MW and with a planned 10-year contract duration, this project demonstrates the scale and potential of our BOO model. If progressed to definitive agreements, it would represent our largest commercial commitment to date and establish a material long-term contracted revenue stream for the Group.”

Dennis Schulz, CEO, ITM Power

Under the BOO model, Hydropulse would build, own and operate the plant, giving ITM long-term contracted and recurring revenues. The customer is planned to provide the site and utilities, including power, which should limit Hydropulse’s exposure to electricity price volatility.

It is still early. Heads of Terms are not a definitive agreement, and Schulz’s own wording, “if progressed to definitive agreements”, reflects that.

The parties are already progressing a joint Front End Engineering Design (FEED) study, and they target a Final Investment Decision (FID) in 2027, with hydrogen production expected to start in 2029. ITM is also in constructive discussions with banks on project-level financing, to scale Hydropulse in a capital-efficient way.

For traders, the 2027 decision and the financing are the next milestones, and no revenue from the project exists today.

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