ITM Power secures £86m in government funding, shares surge

(Sharecast News) - Shares in ITM Power surged on Thursday, after the hydrogen specialist landed funding worth more than £86m from the UK government. Great British Energy Group (GBE) will invest £40m through a non-pre-emptive subscription, giving it a 10% stake in the AIM-listed firm, while the Department for Energy Security and Net Zero confirmed plans to award ITM a £46.5m grant. Set up last year, GBE is a publicly-owned investment fund focused on green energy.

The money will be used to support the establishment of a new, large-scale automated manufacturing line in Sheffield with an annual capacity of 1GW.

ITM, which designs and manufactures industrial-scale electrolysers for green hydrogen production, called the investment a "pivotal step".

Dennis Schulz, chief executive, said: "Clean power increasingly underpins energy sovereignty and resilience which are critical to long-term economic success against a backdrop of recent geopolitical instability.

"The UK government's support, through a combination of equity participation and grant funding, marks a pivotal step in establishing ITM Power at the centre of the UK's hydrogen economy."

Energy secretary Ed Milliband said: "This investment is the government's clean energy mission in action - rebuilding our energy security with clean, homegrown power and good industrial jobs for South Yorkshire."

ITM also increased its year-end cash balance forecast, to between £210m and £215m, up from previous guidance for between £170m and £175m, on the back of the funding.

As at 1100 BST, the stock had jumped 13% at 72.8p.

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