TIDMITM
RNS Number : 5524K
ITM Power PLC
29 August 2019
29 August 2019
ITM Power plc
("ITM Power" or the "Company")
Gigastack Feasibility Study with Ørsted
Project to demonstrate delivery of bulk, low-cost and
zero-carbon hydrogen
through gigawatt scale PEM electrolysis, manufactured in the
UK.
ITM Power (AIM: ITM), the energy storage and clean fuel company,
is pleased to announce funding from the UK Government for the
Gigastack feasibility study with Ørsted and Element Energy. The
project funding is for the feasibility phase leading, if
successful, to the opportunity to bid for further funding for the
implementation.
Gigastack funded by the BEIS Hydrogen Supply Competition, will
demonstrate the delivery of bulk, low-cost and zero-carbon hydrogen
through gigawatt scale polymer electrolyte membrane (PEM)
electrolysis, manufactured in the UK. The project aims to
dramatically reduce the cost of electrolytic hydrogen through:
-- Development of a new 5MW stack module design to reduce material costs.
-- A new semi-automated manufacturing facility with an
electrolyser capacity of up to c. 1GW/year to increase throughput
and decrease labour costs.
-- Deployment of very large scale and hence low cost 100MW+
electrolyser systems using multiple 5MW units.
-- Innovations in the siting and operation of these large
electrolysers to exploit synergies with large GW scale renewable
energy deployments.
The deployment of PEM electrolysers on such a large scale has
not been possible to date, as it requires low-cost stack modules
which are easily integrated into larger electrolyser systems, and
much larger automated manufacturing facilities (the largest
electrolyser factories globally are capable of less than 30MW of
capacity output per annum). ITM Power's proposed innovations in
stack design and manufacturing techniques will address these issues
and reduce the cost of installing an electrolyser such that the
capital cost contribution to the eventual cost of hydrogen becomes
less significant, being dominated by the cost of electricity.
Ørsted will demonstrate the synergy between GW scale offshore wind
energy deployments and hydrogen that will enable the continued
decarbonisation through renewables and a continued cost out of
offshore wind power projects.
This project brings together; ITM Power a developer and provider
of world-class hydrogen systems with 16 years of experience;
Ørsted, the global leader in offshore wind; and Element Energy, a
low carbon, sustainability and consumer behaviour consultancy and
engineering practice with 15 years of experience in initiating and
analysing hydrogen technology projects.
In Phase One (feasibility), ITM Power will develop the designs
and finalise the material requirements to deliver a low-cost 5MW
stack. ITM Power will also refine concepts to maximise the
throughput of the proposed semi-automated manufacturing facility to
meet the demands of bulk hydrogen supply. Ørsted will investigate
potential synergies between offshore wind farms and electrolysers
to identify scenarios that can provide affordable electricity and a
sufficient load factor to allow economic operation of the
electrolysers. Finally, Element Energy will conduct market analysis
of potential end users, explore business models for the operation
of large electrolysers in the energy system and define a roll-out
strategy for the first 100MW electrolysers.
In Phase Two, the 5MW stack would be built and tested both
in-house and in a representative wind-hydrogen scenario.
Construction of the semi-automated manufacturing facility would
also begin. Finally, the business case for large electrolysers
would be refined, enabling commercialisation.
This project is a unique opportunity to develop green hydrogen
production for the UK and establish the country as a centre of
excellence in electrolytic technology. A portfolio of solutions are
required to ensure reliable volumes of hydrogen and security of
supply and this study will advance the development of green
electrolytic hydrogen.
Climate Change Minister Lord Duncan said:
"Using the power of hydrogen could help cut emissions, create
jobs and make industrial processes cleaner and greener, benefitting
the whole economy as we work towards net zero by 2050.
"This innovative project from Ørsted and ITM Power will help our
efforts to roll out hydrogen at scale by the 2030s - a crucial step
towards the end of the UK's contribution to global warming."
Matthew Wright, UK Managing Director at Ørsted, said:
"We must continue taking urgent action to limit the damaging
effects of climate change. The UK already leads the world in
deploying renewable energy and accelerating the use of new
technologies, such as green hydrogen, has a crucial role to play in
decarbonising industrial processes.
"We've seen the cost of offshore wind reduced dramatically
thanks to industry and government working together, and I hope this
project can be the start of a similar journey with green
hydrogen."
Anders Christian Nordstrøm, Vice President for Hydrogen at
Ørsted, said:
"Combining renewable power with flexible green hydrogen
production is a key part of decarbonising energy systems across
Europe and ultimately creating a world that runs entirely on green
energy.
"Hydrogen production by electrolysis is a technology with great
potential and this Gigastack project is an important step forward
as we look to reduce costs and make green hydrogen a viable
solution for the UK's energy transformation. It is great to have
this support from the UK Government for the project."
Dr Graham Cooley, CEO, ITM Power said: "The Gigastack Project
seeks to significantly lower the cost of producing green hydrogen
by scaling the individual electrolyser stacks and the production
process to 1 GW (1,000 MW) of electrolysis per annum. We are
delighted to be working on this important initiative, backed by the
UK Government, with Ørsted the largest supplier of offshore wind in
the UK."
For further information please visit www.itm-power.com or
contact:
ITM Power plc (0)114
Graham Cooley, CEO +44 244 5111
Investec Bank plc (Nominated Adviser
and Broker) Jeremy Ellis / Chris Sim +44 (0)20 7597 5970
Tavistock (Financial PR and IR)
Simon Hudson / Nick Elwes / Barney Hayward +44 (0)20 7920 3150
About ITM Power plc
ITM Power plc manufactures integrated hydrogen energy solutions
for grid balancing, energy storage and the production of green
hydrogen for transport, renewable heat and chemicals. ITM Power plc
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, which was extended in May 2019 to include buses,
trucks, trains and ships, and subsequently a deal to deploy a 10MW
electrolyser at Shell's Rhineland refinery. The Company entered
into a Strategic Partnership Agreement with Sumitomo Corporation in
July 2018 for the development of multi-megawatt projects in Japan.
Additional customers and partners include Ørsted, National Grid,
Cadent, Northern Gas Networks, Gasunie, RWE, Engie, BOC Linde,
Toyota, Honda, Hyundai, Anglo American among others.
www.itm-power.com
About Ørsted
Formed as DONG Energy in 2006 following the merger of six Danish
energy companies, Ørsted's heritage lies deep within Danish energy
production. Since our formation, we have divested our black energy
operations and established our company as a global leader in
offshore wind with a 25 per cent market share. Today, we develop,
construct and operate multiple offshore wind farms across Europe,
and are gradually expanding our global presence. In the UK alone,
we have eleven operational offshore wind farms and have built a
world first bio plant called Renescience, a unique waste-to-energy
solution that will provide energy for up to 9,500 UK homes. We also
offer green electricity without the premium to UK businesses. On a
global scale, we have built enough offshore wind to power 9.5
million people, and by 2025, our ambition is to power 30 million
people with offshore wind. www.orsted.co.uk
About Element Energy
Element Energy is a dynamic and growing strategic energy
consultancy. We specialise in the intelligent analysis of
low-carbon energy, and help our clients (in the sectors of
transport, power generation and buildings) to understand low-carbon
energy. Over the past decade we have gathered a team of experts
based in Cambridge, London, York and Lille who provide robust
technical insights into low-carbon energy markets.
www.element-energy.co.uk
-ends-
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