ITM Power PLC (AIM:ITM) shares soared, rising more than 35% to 127.56p, after it announced it has teamed up with Rheinmetall AG on a defence-focused synthetic fuels project that could open a repeatable route for large-scale electrolyser deployments, as the pair target a planned Europe-wide network of decentralised e-fuel plants for NATO armed forces.
The collaboration centres on Rheinmetall’s Giga PtX project, which is designed to strengthen defence energy resilience, sovereign fuel capability and operational readiness.
The project envisages several hundred production plants across Europe, each with electrolysis capacity of up to 50MW and annual e-fuel output of about 5,000 to 7,000 tonnes. The partnership will initially focus on the UK.
ITM said synthetic fuels are expected to play an important role in defence and other mission-critical sectors where electrification is not viable and secure fuel supply is essential.
That positions Giga PtX as a potentially meaningful growth market for large-scale hydrogen production technologies, particularly as governments sharpen their focus on independent energy supply in defence applications.
Chief executive Dennis Schulz said the project offers “a repeatable deployment opportunity for large-scale electrolysers.”
"Our collaboration with Rheinmetall aligns the energy transition with national security priorities. Reliable access to fuel is fundamental to defence capability, and decentralised production offers a structurally more resilient alternative to traditional supply chains," Schulz said.
He added: "By combining Rheinmetall's system integration capability and defence experience with our leading electrolyser technology, together we are well-positioned to deliver scalable solutions."B
Rheinmetall’s Shena Britzen, meanwhile, described e-fuels as “a strategic necessity”.