ITM Power PLC (AIM:ITM) shares advanced on Thursday, climbing around 12% to 72p, after announcing it had secured £86.5 million of UK government backing to build a 1GW manufacturing line for its next-generation Chronos electrolyser stack technology in Sheffield.
The funding would give the hydrogen specialist a sizeable balance-sheet lift and a clearer route to scaling domestic production.
The package includes a £40 million strategic equity investment from Great British Energy and a proposed £46.5 million grant from the Department for Energy Security and Net Zero.
ITM said the new line will underpin large-scale automated manufacturing of Chronos in the UK, with total project investment expected to reach up to £120 million over three years and commercial operation targeted in 2028.
Great British Energy will subscribe for just under 72.0 million new shares at 55.56p each, a 13.7% discount to the previous day’s closing mid-market price, leaving it with about 10.4% of the enlarged share capital. The DESNZ grant, meanwhile, remains subject to subsidy control approval, with the statutory review expected to conclude in June 2026.
ITM said Chronos has been in development for more than two years and is designed to deliver better energy efficiency, lower cost and a smaller footprint than its current platform.
The company also lifted FY26 cash guidance to £210 million to £215 million from £170 million to £175 million, reflecting the Great British Energy subscription, while grant conditions include a commitment to add around 250 UK jobs over the next five years.