Shares in ITM Power (LON:ITM) advanced in early deals as a power-to-gas project with RWE officially got underway in Germany.
The plant in Ibbenbüren, North Rhine Westphalia, is part of a new system that links together the supply of local electricity, natural gas and district heating.
It is the first time this sort of system has been implemented, the company explained.
Excess energy generated from renewable sources will be converted into hydrogen, so that it can be stored in the natural gas network, and from there it can be recalled at a later date for use in electricity production.
ITM highlighted that this means the project boasts “extremely high” utilisation rates.
“This power-to-gas process is seen as one of the key technologies for tomorrow's energy supply,” ITM said in a statement.
Dr Arndt Neuhaus, chief executive of RWE Deutschland, meanwhile, highlighted that energy storage will become essential for Germany’s electricity system as the country, in fifteen years’ time, aims to generate half its electricity from renewable sources.
“Under these changed conditions, the power-to-gas technology will be an exemplary solution, as it makes it possible for us to respond immediately to fluctuating volumes of incoming power," Neuhaus added.
ITM in December revealed it had won a tender to supply RWE a rapid response power-to-gas system - a PEM electrolyser – and in February it confirmed that the order was satisfied within 10 weeks.
ITM’s electrolyser has subsequently undergone extensive testing, and the company said RWE has measured overall energy efficiency of 86%.
Phil Doran, managing director ITM Power GmbH, said: "We are delighted not only to have won the RWE tender, allowing us to deploy our second generation PEM P2G system, complete with heat recovery, but also to have subsequently worked so productively with the RWE and Westnetz teams that has made today possible.”
Doran added that ITM is looking forward to continuing co-operation with RWE and Westnetz, and it is seeking to further develop its presence in the German market.
On AIM, ITM shares got off to a strong start rising 2.12p, 8.2%, in early deals to trade at 28p.