Mobile Navigation

View Comments

Linde invests in ITM Power, forms JV for industrial-scale ‘green’ hydrogen

| By Mary Bailey

ITM Power plc (Sheffield, U.K.; www.itm-power.com) is pleased to announce its intention to raise at least £52.0 million (before expenses) through a strategic investment of £38.0 million share by Linde UK Holdings No. 2 Limited, a member of the Linde AG Group (Linde); and a conditional placing of £14.0 million (the Firm Placed Shares) with certain existing and new institutional investors (the Firm Placing).   The Group has also entered into a 50/50 joint venture with Linde (the Joint Venture) which will focus on delivering green hydrogen to large-scale industrial projects, principally those with an installed electrolyzer capacity of 10 MWand above.

The net proceeds of the fundraising will be used principally to enhance the manufacturing capabilities of the Group, particularly for the development and production of large scale 5MW electrolyzers, to facilitate product standardization and manufacturing cost reduction, to fund its initial financial contribution to the Joint Venture, and provide working capital and balance sheet strength to support the delivery of the contract backlog and opportunity pipeline.

It is intended that Linde will appoint a Non-Executive Director to the Board of ITM Power following completion of the Share Subscription.

The net proceeds of the Share Subscription, the Firm Placing and the Open Offer (expected to be a minimum of approximately £50.8 million) will be utilized by the Group to facilitate the Group’s move to its new, larger Bessemer Park facility in Sheffield with an annual production capacity of over 1,000 MW per year, fund and resource development of a 5 MW electrolyzer module, enhance product standardization, meet initial funding requirements for the Joint Venture and to provide working capital to support (among other things) the delivery of the contract backlog and opportunity pipeline and to strengthen the Group’s balance sheet.