TIDMITM
RNS Number : 2746D
ITM Power PLC
18 February 2020
18 February 2020
ITM Power plc
("ITM Power")
Industrial scale renewable hydrogen project advances to next
phase
-- GBP 7.5 million funding secured for phase two of Gigastack
-- Project consortium includes ITM Power, Ørsted, Phillips 66 Limited and Element Energy
-- Phase two to demonstrate low-cost, zero-carbon hydrogen in the UK to industrial scale
GBP 7.5 million funding has been awarded for the next phase of
Gigastack, a new renewable hydrogen project, as part of the
Department for Business, Energy and Industrial Strategy (BEIS)
Hydrogen Supply Competition.
The Gigastack project, led by ITM Power, Ørsted, Phillips 66
Limited and Element Energy [1], will show how renewable hydrogen
derived from offshore wind can support the UK's 2050 net-zero
greenhouse gas emission target.
Producing hydrogen has traditionally been associated with high
carbon emissions, but by using renewable electricity, e.g. from an
offshore wind farm, the process of producing hydrogen from water
(electrolysis) can be completely decarbonised. Energy-intensive
industries and the transportation sector will have the opportunity
to reduce the carbon intensity of their fuels by using renewable
hydrogen.
As part of the initial feasibility phase of the Gigastack
project, which finished in 2019, ITM Power developed designs for a
low-cost modular 5 megawatt (MW) electrolyser 'stack',
collaborating with Ørsted to understand the potential synergies
with offshore wind farms and with Element Energy to undertake a
market analysis and explore business models for the first
industrial-scale 100MW electrolysers.
For the second phase of the project, which has now received
funding from the department for BEIS, the consortium will conduct a
Front-End Engineering Design ('FEED') study on a 100MW electrolyser
system using staged installations with a nominal capacity of 20MW.
The FEED study will detail the actual design of a hydrogen
production system connected to a wind farm and industrial off-taker
using ITM Power's new generation of electrolyser stack technology,
renewable energy directly from Ørsted's Hornsea Two offshore wind
farm, and with the resulting renewable hydrogen supplied to an
industrial off-taker; Phillips 66 Limited's Humber Refinery. A key
objective of the Gigastack project is to identify and highlight
regulatory, commercial and technical challenges for real
applications of industrial-scale renewable hydrogen systems.
As part of the second phase, ITM Power will also install and
trial both their next-generation electrolyser stack and the
semi-automated manufacturing machines required for large-scale and
high-volume manufacture of these new large low-cost stacks. This
will help validate a complete production system capable of
delivering hundreds of megawatts of electrolysers per year.
Anders Christian Nordstrøm, Vice President for Hydrogen, Ørsted,
said: "Creating renewable hydrogen with offshore wind really has
the potential to decarbonise industrial processes, and what is
needed now is to scale up the electrolyser technology and bring the
cost down. We've seen this happen in offshore wind. With industry
and government working together, there has been a rapid deployment
and a huge cost reduction. This project aims to do the same with
hydrogen. At the right cost, this technology has the potential to
play a huge role in meeting the UK's decarbonisation targets. We're
excited to be part of this project in the Humber region where we
are already very active, including constructing the biggest
offshore wind farms in the world, Hornsea One and Two, and with
them setting the global standard for deployment of offshore wind at
scale."
Darren Cunningham, Lead Executive UK and General Manager Humber
Refinery, Phillips 66 Limited said:
"Phillips 66 Limited is excited to be involved in the Gigastack
project. This project aligns with our record of developing new
low-carbon markets within the UK and worldwide, following our
innovative technologies, which are key to lithium-ion battery
production and, more recently, our biofuels produced from used
cooking oil.
"The Humber region is uniquely positioned within the UK for the
large-scale deployment of renewable hydrogen. Direct access to
existing offshore wind-power and a developed industrial base with
hydrogen demand at Phillips 66 Limited's Humber Refinery provides
an ideal opportunity to develop a new renewable hydrogen market
where the feedstocks are just water and renewable power."
Dr Graham Cooley, CEO, ITM Power, said: "The second phase of
Gigastack includes stack scale-up, volume manufacturing and a FEED
study for a refinery deployment. The project will result in a
scalable world-class product for the production of low-cost
renewable hydrogen."
For more information, please visit the Gigastack website at
www.gigastack.co.uk.
[1] Project partners
Gigastack brings together:
-- ITM Power, a developer and provider of world-class hydrogen
systems with 16 years of experience;
-- Ørsted, a renewable energy company with 25 years of
experience in deploying and operating wind farms;
-- Phillips 66 Limited, the UK subsidiary of an international,
diversified energy company and the owner of the Phillips 66 Humber
Refinery, one of Europe's most complex refineries;
-- and Element Energy, a zero-carbon consultancy with 17 years
of experience in hydrogen technology projects.
[2] Details about the project:
-- ITM Power will finalise manufacturing designs and test their
new generation of electrolyser stack technology, which enables very
large stacks (up to 5MW) thus reducing costs and improving
efficiency. This will enable the future deployment of 100MW scale
electrolyser systems.
-- ITM Power will install and trial the semi-automated
manufacturing machines required for large scale and high-volume
manufacture of these large low-cost stacks. ITM Power will remove
bottlenecks and validate a complete production system capable of
delivering hundreds of megawatts of electrolysers per year (initial
target 300MW/year, ramping to 1GW/year).
-- Led by Ørsted, the consortium will conduct a FEED study on
the application of a 100MW electrolyser system, using renewable
energy directly from Hornsea Two offshore wind farm, and supplying
the resulting renewable hydrogen to the Phillips 66 Humber
Refinery, where it will reduce CO(2) emissions from the refinery by
lowering the consumption of fossil-based hydrogen.
-- The 100MW will be made up of 20MW electrolyser module
systems, including all aspects of dynamics and integration of
renewable hydrogen supply based on power from offshore wind.
The study will consider the market and regulatory conditions
required for the installation of up to (and potentially beyond) a
100MW-scale electrolyser.
For further information, please visit www.itm-power.com or
contact:
ITM Power plc
Media - Rebecca Markillie, Marketing and Communications
Manager +44 (0)114 244
Investors - Andy Allen, Finance Director 5111
Investec Bank plc (Nominated Adviser and Broker) +44 (0)20 7597
Chris Sim / Jeremy Ellis / Ben Griffiths 5970
Tavistock (Financial PR and IR) +44 (0)20 7920
Simon Hudson / Edward Lee / Barney Hayward 3150
About ITM Power plc
ITM Power plc manufactures integrated hydrogen energy solutions
for grid balancing, energy storage and the production of renewable
hydrogen for transport, renewable heat and chemicals. ITM Power plc
was admitted to the AIM market of the London Stock Exchange in
2004. In October 2019, the Company announced the completion of a
GBP58.8 million fundraise, including a subscription by Linde of
GBP38 million, together with the formation of a joint-venture with
Linde to focus on delivering renewable hydrogen to large scale
industrial projects worldwide. ITM Power 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 in January 2018 a deal to deploy a 10MW
electrolyser at Shell's Rhineland refinery. ITM Power announced the
lease of the world's largest electrolyser factory in Sheffield with
a capacity of 1GW (1,000MW) per annum in July 2019. Customers and
partners include Sumitomo, Ørsted, National Grid, Cadent, Northern
Gas Networks, Gasunie, RWE, Engie, BOC Linde, Toyota, Honda,
Hyundai and Anglo American among others.
About Ørsted
The Ørsted vision is a world that runs entirely on green energy.
Ørsted develops, constructs and operates offshore and onshore wind
farms, solar farms and energy storage facilities, bioenergy plants
and provides energy products to its customers. Headquartered in
Denmark, Ørsted employs 6,500 people, including over 1000 UK
employees. Over the last ten years Ørsted has invested GBP9.5
billion in clean energy infrastructure in the UK and is currently
building the world's largest offshore wind farms off the Yorkshire
Coast, Hornsea One and Two. By the end of 2021 Orsted expects to
have invested over GBP13 billion in the UK. Ørsted's shares are
listed on Nasdaq Copenhagen (Ørsted). In 2018, the group's revenue
was DKK 76.9 billion ($11.4 billion).
About Phillips 66
Phillips 66 Limited is subsidiary of Phillips 66, a diversified
energy manufacturing and logistics company. With a portfolio of
Midstream, Chemicals, Refining, and Marketing and Specialties
businesses, the company processes, transports, stores and markets
fuels and products globally. Headquartered in Houston, the company
has 14,500 employees committed to safety and operating excellence.
Phillips 66 had $59 billion of assets as of Sept. 30, 2019.
Phillips 66 Limited's Humber Refinery situated in Northern
Lincolnshire has been providing energy, improving lives in for over
50 years. For more information, visit http://www.phillips66.com
.
About Element Energy
Element Energy is a dynamic and growing strategic energy
consultancy. We specialise in the intelligent analysis of
zero-carbon energy and help our clients (in the sectors of
transport, power generation and buildings) to understand
zero-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 zero-carbon energy markets.
www.element-energy.co.uk
-ends-
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