I still think hydrogen has a big role to play - off peak storage (even if efficiency is poor night rates for electricity are incredibly low) and H2 powered cars; storage infrastructure is there
Linde invests in UK hydrogen machine manufacturer
Group’s move is sign of companies gearing up for potential boom in ‘clean’ gas
Linde invests in UK hydrogen machine manufacturer Group’s move is sign of companies gearing up for potential boom in ‘clean’ gas
Industrial gas and engineering group Linde has taken a stake in a small British business that makes machines to produce hydrogen, in the latest sign of companies preparing for a potential boom in “clean” gas. Linde has agreed to invest £38m in return for 20 per cent of Sheffield-based ITM Power, which has a market capitalisation of about £140m and makes electrolyser machines that produce hydrogen from water using electricity. The investment from Linde is one strand of a wider fundraising push announced by Aim-listed ITM on Thursday to raise more than £52m to bolster its cash reserves and help fund its move to bigger manufacturing facilities in Sheffield. Its shares rose 9 per cent to 47p by late afternoon in London on Thursday. The two companies will also launch a 50:50 joint venture to target an increasing number of companies and governments that are backing hydrogen as a possible solution for problems such as how to store excess electricity generated by renewables and how to reduce carbon dioxide emissions from sectors including heavy industry and haulage.
The International Energy Agency, the Paris-based think-tank, has described 2019 as a year of “unprecedented momentum” for hydrogen, which does not produce carbon dioxide when burnt. Sceptics, however, highlight the high costs of producing the gas and safety concerns. The joint venture would allow ITM to concentrate on supplying electrolysers while Linde carried out all of the engineering, procurement and construction elements of projects, said ITM chief executive Graham Cooley. The two companies had already been working together for five years, including on projects such as fitting hydrogen fuelling pumps at UK forecourts owned by Royal Dutch Shell, he said. ITM, which floated on Aim in 2004, said it also planned to raise £14m through a placing of shares with certain existing and new institutional investors. If it secures approval for its fundraising plans from shareholders at an extraordinary meeting on October 22, it will also launch an open offer of more than 17m new shares priced at 40p apiece, aimed at raising up to £6.8m. The company had £5.2m in cash at the end of its financial year, which ended on April 30. It made a loss of £9.3m last year, up from £6.5m a year earlier, as it invested to increase its production capabilities. It generated revenues of £4.6m, up 30 per cent year on year. Hydrogen can be produced in several ways, via electrolysis to produce “green” hydrogen and from natural gas, although the latter produces carbon dioxide that then has to be captured and stored if it is to be considered “clean”. Linde did not return a request f