Shares of ITM Power plc (LON: ITM) today surged 6.83% despite the lack of major announcements from the company as the stock continued to benefit from its last announcement of a £135 million capital raise and a hydrogen energy deal in Italy.
The announcements were made on October 26, after which the stock fell briefly before embarking on a rally as from October 29.
ITM Power also announced that it had inked a deal with Italian natural gas utility company Snam SpA (BIT: SRG) to develop up to 100 MW of green hydrogen projects. Snam also bought ITM Power shares worth £30 million as part of the deal bringing the company’s total capital raised to £165 million.
Shares of the hydrogen energy company have gained popularity among investors despite the company’s operations still being unprofitable; the firm recorded a £29 million pre-tax loss in the year ended April 30.
ITM Power is well-positioned to benefit immensely from the growing trend among governments and investors worldwide to fund green energy projects and to purchase clean energy going forward.
ITM Power also reported that its order backlog is now worth £119 million and that it has identified projects worth £325 million that it can bid on in future. The deal with Snam positions the company as the preferred supplier for 100 megawatts (MW) of potential electrolysis projects.
ITM Power share price
ITM Power shares today surged 6.83% to trade at 291p having rallied from Friday’s closing price of 270.5p.