ITM Power PLC Sumitomo Strategic Partnership Agreement (0473U)
July 09 2018 - 11:31AM
UK Regulatory
TIDMITM
RNS Number : 0473U
ITM Power PLC
09 July 2018
9 July 2018
ITM Power plc
("ITM Power" or the "Company")
Sumitomo and ITM Power Announce Strategic Partnership
Agreement
Sumitomo Corporation ("Sumitomo") and ITM Power plc ("ITM
Power") are pleased to announce a Strategic Partnership Agreement
("the Agreement") for the development of multi-megawatt projects in
Japan based exclusively on ITM Power's electrolyser products.
ITM Power and Sumitomo (together "the Partners") have a similar
vision for improving air quality, through the use of hydrogen to
decarbonise heat, transport and industrial processes by deploying
PEM electrolysers. Both parties agree on the importance of storing
renewable energy using the production of CO2-free hydrogen.
Under the terms of the Agreement, ITM Power will supply
multi-megawatt electrolyser systems to Sumitomo for integration
into wider projects on an exclusive basis in Japan and on a
non-exclusive basis in other territories. Sumitomo will introduce
ITM Power's products in Japan, including potential customer
financing and will refer to ITM Power any electrolyser projects
which Sumitomo becomes aware of and considers to have the potential
for collaboration between the Partners outside Japan.
The Partners will use their combined capabilities to: market,
develop, finance and execute multi-megawatt hydrogen projects;
jointly develop the value proposition and work up a number of
strategic business cases for rollout, and; conduct exclusive
feasibility studies for several projects in Australia.
ITM Power has deployed products in the UK, Europe and the US as
well as the rest of the world, and currently has GBP40.3m of deal
pipeline to be delivered, representing in excess of 14MW of
electrolysis, balance of plant and hydrogen storage. This in turn
builds on the 8MW delivered in Financial year ending April 2018 and
2MW in financial year ending April 2017, demonstrating a growing
track record of deployments at the Megawatt scale.
Geographically, ITM Power deal pipeline is centred around the UK
(53%) and Europe (44%), and this partnership agreement presents a
platform for entering the Japanese market and the rest of the
world. The company has a non-contracted pipeline of tender
quotations in excess of GBP250m, which comprises 12% UK, 60% Europe
and 28% Rest of the World.
Commenting, Mr. Suzuki, Executive Officer, Sumitomo, said: "The
Sustainable supply of energy and improvement of the global
environment are material issues that should complement each other.
Our goal is to contribute to creating a carbon free society. In
order to accomplish this, we will be involved in producing CO2 free
hydrogen by electrolyzing water with renewable energy, which can be
utilized as fuel for the next generation of energy and mobility.
Today we have signed a Strategic Partnership Agreement with ITM
Power. Together, we will be exploring possibilities of concrete
joint business in Japan and other areas."
Prof Roger Putnam CBE, Chairman, ITM Power plc commented: "I
have worked with Sumitomo Corporation in the past and am delighted
to have signed this strategic partnership to introduce ITM Power's
technology into Japan. This is an important next step in the
company's development."
Commenting, Dr Graham Cooley, ITM Power CEO, said: "Japan is a
strategically important territory for hydrogen. This partnership is
based upon Sumitomo's knowledge of Japan - the customer base and
the compliance landscape. We're pleased that Sumitomo recognises
that ITM Power has a world leading solution for the low carbon
production of hydrogen and hope that Sumitomo's operations in many
other territories outside Japan may be of relevance to the
deployment of ITM Power's technology. I believe both Partners' mid
to long term vision is highly synergistic.
For further information please visit www.itm-power.com or
contact:
ITM Power plc
Graham Cooley, CEO
Andy Allen, Finance Director +44 (0)114 244 5111
Investec Bank plc (Nominated Adviser and
Broker)
Jeremy Ellis / Chris Sim / Alexander Ruffman +44 (0)20 7597 5970
Tavistock (Financial PR and IR)
Simon Hudson / James Collins +44 (0)20 7920 3150
About ITM Power plc
ITM Power manufactures integrated hydrogen energy solutions for
grid balancing, energy storage and the production of green hydrogen
for transport, renewable heat and chemicals. ITM Power was admitted
to the AIM market of the London Stock Exchange in 2004. In
September 2017 the Company announced the completion of a GBP29.4m
working capital fundraise. The Company signed a forecourt siting
agreement with Shell for hydrogen refuelling stations in September
2015 and subsequently a deal to deploy a 10MW electrolyser at
Shell's Rhineland refinery. Additional customers include National
Grid, RWE, Engie, BOC Linde, Toyota, Honda, Hyundai, Anglo American
among others. The Company's order pipeline stands at GBP33.8m of
projects under contract and GBP6.5m of contracts in the final
stages of negotiation, totaling GBP40.3m (subject to exchange rate
variation).
-ends-
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END
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