ITM Power welcomes UK government’s £23mln fund boost for hydrogen-powered vehicles and infrastructure

ITM pointed out it currently has £17.41mln of revenue under contract and £7.04mln in the final stages of negotiation, making a total pipeline of £24.45mln

Clean fuel company ITM Power plc (LON:ITM) has welcomed the UK government’s Office of Low Emission Vehicles (OLEV) announcement at the weekend of a £23mln boost for hydrogen-powered vehicles and infrastructure.

ITM also pointed out it currently has £17.41mln of revenue under contract and £7.04mln in the final stages of negotiation, making a total pipeline of £24.45mln.

Under the new £23mln fund, hydrogen fuel providers will be able to bid for funding in partnership with organisations that produce hydrogen vehicles to help build high-tech infrastructure, including fuel stations.

The government said the funding will boost the creation of hydrogen fuel infrastructure and uptake of hydrogen-powered vehicles.

ITM Power’s CEO, Dr. Graham Cooley, said: ​“This important new UK Government funding programme supporting the roll out of hydrogen vehicles is a welcome step and shows a commitment to tackling inner city air pollution.

“The increasing momentum generated by the introduction of Toyota, Honda and Hyundai FCEV’s into the UK is set to continue as a result of this significant infrastructure funding.”

In a note to clients, Zeus capital analyst Dr Tom McColm said: ​“ITM’s state-of-the-art electrolysis platform lies at the centre of existing and future UK hydrogen fueling infrastructure roll-out, and with Toyota, Honda and Hyundai all now having introduced production hydrogen fuel cell electric vehicles (‘FCEVs’) into the UK, ITM is excellently positioned for continued infrastructure build out and market growth.”

In early morning trading, ITM shares were flat at 17.5p.

Confidence to invest …

The government also said a competition will be launched this summer which will invite proposals from public organisations, businesses and hydrogen operator, with the government to provide match funding for successful bidders as part of its plans to cut carbon emissions, improve air quality and deliver economic opportunities for the UK.

Transport Minister John Hayes said: ““Hydrogen fuel cell electric vehicles can play a vital role alongside battery electric vehicles to help us cut harmful emissions.

“We know availability of hydrogen refuelling infrastructure can be a potential obstacle to the take up of hydrogen fuel cell electric vehicles. That’s why we’re providing support to give interested parties the confidence to continue to invest in this new emerging technology to help us achieve our ambition for almost all new cars and vans to be zero emission by 2040.”