ITM Power (LSE:ITM) has signed a strategic agreement with Protium Green Solutions aimed at accelerating the development of large-scale green hydrogen projects across the UK. The partnership establishes a framework for the two companies to collaborate on the development, ownership and operation of hydrogen production facilities, supporting the growth of the domestic green energy sector.
The agreement will evaluate a range of deployment models, including the use of Hydropulse’s modular hydrogen production systems and the direct sale of ITM Power’s electrolysis technology. Initial activity will focus on projects within Protium’s Hydrogen Allocation Round portfolio, creating opportunities to expand green hydrogen production capacity in key industrial regions.
Cromarty Hydrogen Project Leads Initial Deployment
The first major initiative under the partnership is the Cromarty Hydrogen Project, located in the Scottish Highlands. The development is expected to utilise 15MW of ITM electrolysers and produce approximately seven tonnes of green hydrogen each day.
The hydrogen generated by the facility is intended to support the decarbonisation of industrial heat and power applications, particularly for customers operating in off-grid locations where low-carbon alternatives can be more difficult to access.
Protium will act as project developer, overseeing delivery of the scheme and progressing it toward a final investment decision, which is currently targeted for December 2026.
Regional and Industry Benefits
Beyond its environmental objectives, the Cromarty project is expected to generate economic benefits for the local area. Phase 1 of the development is anticipated to create around 30 skilled jobs, contributing to regional employment and supporting the growth of specialist expertise within the emerging hydrogen sector.
Management believes the collaboration has the potential to strengthen both companies’ positions within the UK hydrogen market while supporting broader national energy transition goals. The project also highlights increasing momentum behind hydrogen as a decarbonisation solution for hard-to-abate industrial sectors.
Growth Opportunities Balanced by Financial Challenges
The partnership provides another avenue for ITM Power to expand the deployment of its electrolysis technology and strengthen its project pipeline. Recent updates have pointed to improving order quality and encouraging demand trends across the hydrogen sector.
However, the company’s financial profile continues to be characterised by ongoing losses and negative operating and free cash flow. While ITM maintains a relatively low-leverage balance sheet, investors remain focused on the timing of profitability and the company’s ability to convert growing commercial activity into sustainable financial returns.
Technical indicators remain supportive, reflecting strong share price momentum, although overbought conditions may increase the risk of short-term volatility. Valuation support remains limited given the absence of earnings and dividend income.
More About ITM Power
ITM Power is a UK-based clean energy technology company specialising in proton exchange membrane (PEM) electrolysers used to produce green hydrogen from renewable electricity. The company supplies industrial-scale hydrogen production systems to energy and industrial customers seeking to reduce carbon emissions and also offers hydrogen production through its Hydropulse build-own-operate model. ITM Power is listed on AIM and holds a Green Economy Mark in recognition of its focus on environmentally sustainable revenues.
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