Zeus Capital Research Director Tom McColm up with DirectorsTalk for an exclusive interview to discuss ITM Power plc (LON:ITM)
Q1: Tom, a big announcement today for ITM Power, what are your thoughts on that?
A1: Like you said, it’s a big announcement. I think it’s a very significant announcement for ITM Power, partnering with Shell for a UK rollout of hydrogen stations and the first one opening at the busiest Shell forecourt on the UK motorway network. That announcement coming the day after Royal Dutch Shell Plc (LON:RDSA) announced multiple rollout in California of hydrogen stations partnering with Toyota Motor Corp (NYSE:TM) and in that same announcement they’re stating an ambition to have 400 stations in Europe and North America by 2023. So, in that deal, the one announced yesterday, it’s well documented that Toyota have really gone hard in on the hydrogen side of things, they think hydrogen is the future, they’ve put all their eggs in that basket, that’s a huge name on the vehicle side and now Shell partnering with them is a huge name on the fuelling side.
So, that announcement, the following day, ITM Power announcing that they’re partnering with Shell and Shell are using their technology I think it’s a hugely significant announcement. What I’ve noticed, the share price reaction to the announcement, when I’ve seen larger share price reactions to ITM announcements of less significance, leads me to believe there’s still work to be done here in getting the investment community up the curve on, not only, ITM but as a sector as a whole because things are really happening here.
Q2: As you mentioned, Toyota have invested heavily in hydrogen, do you think hydrogen has a significant role to play in the future of transport?
A2: Yes, I’ve probably just answered that in the last question. In short, the answer is yes, I think that the ultimate zero carbon transport future that we’re looking for, that will come, will be a mix. I don’t think it’s a straight race between the electric vehicles, hydrogen vehicles etc., I think for sure that hydrogen is set to play a big part.
Q3: Tesla Inc (NASDAQ:TSLA) CEO Elon Musk is quite sceptical towards hydrogen, isn’t he?
A3: Yes, Elon Musk is an interesting one, when I read what he says, his comments are ill-informed and I think he’s wrong. He’s a great marketing guy, he’s clearly promoting and protecting his own business by down-talking hydrogen but he’s wrong. Like I said earlier, I think that the future of transport is going to be a mix but if you want to simplify it down to a straight choice between electric vehicles and hydrogen vehicles then I’m looking at Toyota and Shell sitting on one side and Tesla sitting on the other, I know who I’d be backing there.
Q4: What should we be looking for to drive the ITM Power plc share price in the near to medium-term?
A4: Just more commercial activity and they really are getting going on the commercial side. So, further commercial sales and deals and the competitive tender wins in their key target markets, which are this market which is the hydrogen refuelling infrastructure market and also the power-to-gas for renewable energy storage market. So, more deals and I think we will see it.
