ITM Power agrees terms for 150 MW green hydrogen project

what happened

ShareCast reports that ITM Power has signed heads of terms for a 150 MW green hydrogen project. The development will use the company’s Alpha electrolyser platform to produce hydrogen on site under a 10-year agreement.

The parties are already carrying out a joint front-end engineering design, or FEED, study. A final investment decision is targeted for 2027, while hydrogen production is expected to start in 2029. Hydropulse is planned to build, own and operate the project, creating long-term contracted and recurring revenue for ITM Power.

The company said the customer is expected to provide the site and utilities, including electricity, reducing Hydropulse’s exposure to power-price volatility. ITM Power added that it was in “constructive” discussions with banks about project-level funding to expand Hydropulse in a capital-efficient manner.

Chief executive Dennis Schulz called the agreement an important milestone. If definitive contracts are signed, he said, the project would be ITM Power’s largest commercial commitment so far and would establish a material long-term contracted revenue stream. At 1025 BST, the shares were 5.3% higher at 98.80p. Berenberg maintained its ‘buy’ rating and 200p price target, describing the project as potentially transformative for the company’s finances and operations.

why it matters

The development could shift ITM Power toward a more visible recurring-revenue model, subject to the FEED process, the 2027 investment decision and definitive agreements. Berenberg said Hydropulse may provide a predictable financial base that supports future growth.

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