The technology partner behind Gigastack, the Humber’s pioneering green hydrogen project, has raised £165 million in a major share issue and company buy-in.
ITM Power placed more than 55 million shares at 235p, while Italian gas pipeline specialist Snam has also taken a £30 million minority holding.
To meet investor demand the issue was increased by £15 million, with a further open offer to be made with an additional £7 million eyed.
ITM said the funds will be used to “further accelerate the maximisation of manufacturing capacity” and to invest in the group’s operational capabilities. It is in the process of launching a huge new manufacturing facility in Sheffield as it scales up electrolyser capability to 100MW, with a vision for 1GW production capacity by 2024.
It comes less than 24 hours after Governor of the Bank of England, Andrew Bailey, told of strong demand for green investment.
Dr Graham Cooley, chief executive, said: “The growth of global markets for green hydrogen is accelerating fast. As a result of this successful fundraise, ITM Power is well positioned to build on its existing leadership and capitalise on this rapidly developing market. We are delighted with the results of the fundraise and thank our existing shareholders for their support and welcome our new investors.”
The South Yorkshire team is working with Danish offshore wind giant Orsted and US oil giant Phillips 66 to bring forward green hydrogen fuel switching at the Humber Refinery.
The government-backed scheme will tap into the power brought ashore close by from Hornsea Two - set to take the title as the world’s largest offshore wind farm when it is built. The issue came just minutes before Energy and Clean Growth Minister Kwasi Kwarteng referenced Gigastack in a major Humber summit address.
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It is anticipated the shares will be admitted to the London Stock Exhange on November 12, with Investec Bank acting as sole bookrunner.
On the deal, Snam chief executive Marco Alverà, said: “The agreement with one of the main global producers of electrolysers is Snam’s first external investment in the hydrogen sector and stands alongside those we are already advancing to make our infrastructure ready for the transport of this new clean energy carrier.
“The partnership with ITM Power allows us to build on our know-how in technologies for the production of green hydrogen in a way that is functional to business development and to become a player along the value chain.
“We want to develop new projects and contribute to enabling the supply chain, both internationally and in particular in Italy, which has the opportunity to become a green hydrogen hub between Europe and North Africa.
“Our goal is to help establish hydrogen and renewable gases, together with renewable electricity, as decisive solutions to achieve the international climate neutrality goals.”