Shares of ITM Power (LON:ITM), the energy storage and clean fuel company, rose 12% after it said its deal pipeline increase £5.9mln in the two months since raising £29.4mln from investors.
The business now has £20.2mln of projects under contract and a further £22.4mln of deals in the final stages of negotiation.
“Our strong pipeline growth reflects the hydrogen and energy storage markets' rapid growth worldwide and ITM's focus on commercial sales,” said chief executive Graham Cooley.
Clear trend towards bigger units
ITM said it has 12 units at its facility in Sheffield which are either being built, undergoing factory acceptance testing or are ready for shipment.
A further five are being commissioned in the field ahead of coming online – giving a total of 17 units, or over five megawatts (MW) of installed capacity.
Looking ahead, the production plan starting next year already exceeds 15MW.
ITM said it is detecting a “clear trend” towards bigger unit sizes and larger-scale industrial applications.
New, larger facility
It has signed an outline agreement on a new facility capable of accommodating the size and number of units in production.
Meanwhile, as part of the National Grid’s HyDeploy project to reduce the UK’s carbon footprint from heating homes, ITM is looking at the potential use of large-scale power-to-gas storage within the Northern Gas Networks distribution system.
“We have larger systems, compliant to operate all over the world, placing ITM Power in a great market position,” said CEO Cooley.
The hydrogen refuelling part of the ITM business is also performing strongly and it now has 12 funded stations. Planning permission has been granted for a further 19 sites.
ITM Power said it has entered into 17 hydrogen fuel supply contracts for refuelling fuel cell electric vehicles with names such as Honda, Toyota and Hyundai.
“This is a very exciting time for the energy industry, and ITM Power is at the forefront of a market which will revolutionise air quality and energy storage for future generations," said Cooley.
At 11.30am, the stock was up 4.12p at 38.38p, valuing the business at £127mln.