ITM Power plc (LSE:ITM) has received a formal Notice to Proceed on a 20MW green hydrogen project after the customer reached a final investment decision, converting a previously announced award into a binding contract.
The project will now be included in ITM’s contracted order backlog, enabling full-scale execution to commence. Management said the development further strengthens the group’s credentials in delivering industrial-scale proton exchange membrane (PEM) electrolyser systems. Additional details about the scheme are expected to be released toward the end of the first quarter of 2026.
While the contract win underscores continued commercial traction in the green hydrogen sector, the company’s broader outlook remains challenged by persistent losses and negative operating and free cash flow. Technical indicators also reflect a bearish trend, with the share price trading below key long-term moving averages.
However, these pressures are partially offset by signs of operational progress highlighted in recent earnings updates, including record first-half revenue, improved order backlog quality and reiterated growth guidance. ITM also maintains a relatively low-leverage balance sheet, although near-term profitability and cash flow timing risks continue to weigh on investor sentiment.
More about ITM Power
ITM Power plc is a Sheffield-based manufacturer of proton exchange membrane electrolysers used to produce green hydrogen from renewable electricity and water. Founded in 2000 and listed on AIM since 2004, the company focuses on large-scale hydrogen systems designed to support industrial decarbonisation and the transition to net zero energy systems.
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