ITM Power inks capacity deal with Shell Deutschland

11th Dec 2023 13:17

(Sharecast News) - ITM Power has finalised a capacity reservation agreement with Shell Deutschland, it announced on Monday.

The AIM-traded firm said that Shell would secure future production capacity for ITM Power's advanced electrolyser stacks under the agreement.

It said the reservation encompassed 100 megawatts of TRIDENT electrolyser stacks, with production scheduled for 2025 to 2026.

The reserved capacity was intended for use in the Refhyne 2 project at the Shell Energy and Chemical Plant in Rhineland, Germany.

ITM noted that the project's execution was contingent on a final investment decision.

"Today's announcement is yet another validation of our technology and credibility to deliver at scale, providing reassuring recognition by a world-leading industrial customer," said chief executive officer Dennis Schulz.

"The capacity reservation also reflects the upcoming challenge for customers to secure credible large-scale delivery capability within the PEM electrolyser sphere, against a quickly growing demand."

At 1258 GMT, shares in ITM Power were down 2.54% at 54.38p.

Reporting by Josh White for Sharecast.com.