The ITM Power plc (LON: ITM) share price rallied 5.22% after revealing that it had signed a contract with Power On Connections Ltd to increase the power supply at ITM’s Bessemer Park by 300% from 7.5 to 30 megavolt amperes (MVA) by the end of 2024.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
Investors cheered the announcement, given the massive shift in government policies in the UK and globally towards renewable energy sources. Bessemer Park in Sheffield is ITM Power’s Gigafactory, which began manufacturing operations in November 2021.
Top Broker Recommendation
- eToro Top stock trading platform with 0% commission – Read our Review
- Tickmill Regulated by the FCA – Read our Review
- Admirals (Admiral Markets) More than 4500 stocks & ETFs available – Read our Review
- Spreadex Spreadex has been around for a long time – Read our Review
- IG Top-tier regulation – Read our Review
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
As its growth strategy outlines, the increased power supply will allow ITM Power to increase product testing massively. The agreement is a significant milestone for ITM Power under its new CEO Dennis Schulz who assumed the role in December 2022.
ITM Power has already taken the first step in the multi-year contract by increasing its power supply by 50% to 7.5MVA from 5.0MVA. In addition, the company noted that the power upgrade was available immediately, allowing it to test two 2MW modules simultaneously.
Investors' positive reaction was expected, given that they could see the impact of the power upgrade on ITM Power’s operations. By increasing its testing capacity, ITM Power will automatically increase the number of PEM electrolysers delivered to clients.
Besides the manufacturing process, ITM Power spends significant power and time testing the PEM electrolysers to ensure they can consistently deliver the expected green hydrogen outputs once the customer receives and starts using them.
ITM Power has carved a niche in the renewable energy industry as a designer and manufacturer of cutting-edge PEM electrolysers that generate green hydrogen without adding more water vapour to the atmosphere or removing oxygen from the atmosphere.
The company signed two 100MW electrolyser contracts with Linde Engineering in January. Hence, it can now deliver the electrolysers much faster due to its increased testing capacity.
Dennis Schulz, ITM Power’s CEO, said: “As part of our 12-month plan, in January, I stated our intention to increase testing capacity in order to satisfy our project delivery needs. Today's announcement is an important step to de-bottlenecking our manufacturing output and an important enabler for scaling production.”
*This is not investment advice.
ITM Power share price.
The ITM Power share price rallied 5.22% to trade at 84.70p, from Monday’s closing price of 82.29p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.