ITM Power PLC (LON:ITM) is experiencing a significant increase in commercial orders and enquiries for its state-of-the-art, modular, electrolysis platform. Importantly, there is a clear, upward trend in average order/enquiry size. Increasing commercial interest is not only coming in ITM’s primary target markets of hydrogen transportation infrastructure and power-to-gas (‘P2G’) storage of intermittent renewables, but also from large potential customers in other industrial mass-markets, including petrochemicals, steel-making and chemicals. The load flexible, MW-scale, high-pressure, and (key) rapid-response (sub 1s) advantages of PEM electrolysis as a clean hydrogen source, is enabling new business models. As a result, demand for ITM’s MW-scale PEM platform is growing rapidly. Following its first ‘multi-MW’ contract for 3MW from a customer in early April, ITM launched designs and concepts for up to 100MW systems based around its latest 2.2MW core module at Hannover in late April. We expect these increasing trends in order frequency and scale to continue, facilitating both top-line growth and descent of the cost curve, opening new markets and potentially propelling ITM Power through breakeven and beyond.
* ITM is experiencing increasing market pull for larger scale multi-MW installations. Driven by the advantages of its PEM electrolysis hardware, in particular, the capacity for full-load, sub-second, response; ITM is receiving a growing level of commercial interest in its technology for increasingly larger-scale projects. This is coming from both within its primary target markets of hydrogen fuelling infrastructure and P2G storage of intermittent renewables, as well as from a growing number of new verticals including chemicals, petrochemical refining and steel-making.
* ITM possesses world leading, rapid response PEM electrolysis hardware. The company has developed and is now scaling-up and commercialising, world-leading, state-of-the-art PEM electrolysis hardware for the splitting of water into gaseous hydrogen and oxygen. ITM’s platform is flexible (partial or full load), self-pressurising on the hydrogen side, highly efficient and, crucially, rapid response. ITM’s 2.2MW modular core unit is capable of full load response in under 1 second and can be used for primary grid balancing – an extremely high-value operational feature.
* ITM Power PLC is demonstrating strong total income growth on modest forecasts. FY17 and FY18 total income forecasts of £10.7m and £15.1m respectively reflect assumptions in ITM’s 2 primary target markets of hydrogen fuelling infrastructure and P2G storage. This constitutes YoY top-line growth of 30% for 2016/2017 and 41% for 2017/2018. It should also be noted that no larger scale orders in primary target markets or new verticals are assumed in the forecasts presented. One such order in the coming 12 months would mandate a significant upward adjustment of our 2018 forecasts. ITM has demonstrable traction and growth in global mass markets at an early stage of their evolution.
