ITM Power (LSE:ITM) has secured £86.5 million in UK government-backed funding to support the development of a new 1 gigawatt automated production line for its next-generation Chronos electrolyser stacks at its Sheffield facility. The package includes a £40 million equity investment from the state-owned energy company Great British Energy and a planned £46.5 million grant from the Department for Energy Security and Net Zero.
The funding follows an independent due diligence process and is intended to strengthen the UK’s domestic clean energy technology capabilities. The new manufacturing line is expected to enhance ITM Power’s cost competitiveness and production efficiency while supporting the creation of hundreds of skilled jobs in South Yorkshire. The company also indicated that the investment improves its financial outlook for FY26, boosting its cash guidance by approximately £40 million as it works toward accelerating growth and progressing toward profitability.
Despite this strategic support, the company’s investment outlook remains challenged by weak financial performance, including ongoing losses and negative operating and free cash flow. Technical indicators also point to a bearish trend, with the share price currently trading below key moving averages. However, these concerns are partly balanced by signs of operational progress highlighted during recent earnings discussions, including record first-half revenue, improving backlog quality, and reaffirmed growth guidance. ITM Power also maintains a relatively low-leverage balance sheet, though near-term risks related to profitability and cash flow timing remain.
More about ITM Power
ITM Power is a UK-based developer and manufacturer of proton exchange membrane (PEM) electrolysers and hydrogen production systems. The company focuses on enabling large-scale green hydrogen generation for industrial and energy applications. With more than two decades of research and development and vertically integrated manufacturing operations in Sheffield, ITM Power serves a global customer base that includes major energy and industrial companies, positioning itself as a key technology provider in the expanding clean hydrogen market.
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