ITM Power (LSE:ITM) has officially been awarded a £46.5 million grant from the Department for Energy Security and Net Zero, alongside a £40 million equity investment from Great British Energy, to accelerate production of its next-generation Chronos electrolyser stack. Designed to improve energy efficiency while reducing production costs, the Chronos platform is expected to strengthen ITM Power’s position in the growing green hydrogen sector and expand its commercial opportunities.
The funding will finance the construction of a dedicated Chronos manufacturing line at the company’s Sheffield site, making use of the existing Trident production platform to minimise implementation risk. Once operational, the facility is expected to deliver up to 1 GW of annual manufacturing capacity through advanced automation, specialised equipment and cleanroom production processes, supporting wider deployment of green hydrogen technologies across industry.
To ensure a smooth production ramp-up, ITM Power will also manufacture modular testing systems and validation equipment in-house. Management believes the investment represents an important milestone in the company’s strategy to achieve sustainable, profitable growth, while strengthening its position as a key supplier to UK hydrogen projects. The company also sees the development as an opportunity to help reshape Sheffield’s industrial heritage by establishing the city as a major centre for hydrogen technology manufacturing.
Although ITM Power continues to report operating losses and negative operating and free cash flow, its balance sheet remains supported by relatively low leverage. Market momentum has improved, with the shares performing strongly against key moving averages, although technical indicators suggest near-term overbought conditions. Recent management commentary highlighted improving order quality and encouraging growth prospects, but uncertainties remain around the timing of profitability, cash outflows and valuation given the absence of earnings and a dividend.
More about ITM Power
ITM Power is a UK-based developer and manufacturer of industrial-scale electrolysers used to produce green hydrogen through proprietary proton exchange membrane (PEM) technology. The company combines vertically integrated manufacturing with standardised hydrogen plant designs to supply industrial and energy customers, while also offering hydrogen production through its Hydropulse build-own-operate model. ITM Power is listed on London’s AIM market and holds the Green Economy Mark.
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