ITM Power has secured a major boost from the UK government, with a £40 million equity investment from Great British Energy and a £46.5 million grant from the Department for Energy Security and Net Zero to scale up production of its next-generation hydrogen technology.
The combined £86.5 million package will fund a new large-scale automated manufacturing line in the UK with 1 GW annual capacity for ITM’s Chronos electrolyser stack, a platform the company says offers superior energy efficiency and substantially lower costs than its predecessors.
The backing followed rigorous third-party technical and commercial due diligence, and ITM described it as a clear vote of confidence in both its technology and the UK’s ambitions for sovereign clean-energy manufacturing.
Ed Milliband, Energy Secretary, 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.
“Communities have long been calling out for a new generation of good industrial jobs, and with these plans we answer that call, helping to create an economy in which there is no need to leave your hometown just to find a decent job. Thanks to this government’s commitment to clean energy, a generation of young people in our industrial heartlands can have well-paid secure jobs.
“This has only happened thanks to months of intense collaboration between Great British Energy, our publicly owned energy company, the government and ITM Power. It is time to make and build things in Britain again, and with this Government’s clean energy mission, we will.”
ITM, based in Sheffield, said Chronos should help it grow market share, accelerate industrial adoption of hydrogen, and speed its path to profitability, underpinned by what it called strong order momentum and a growing backlog over the past two years.
The firm has upgraded its FY26 cash guidance to £210-215 million, up from £170-175 million previously, reflecting the GBE subscription proceeds.
ITM shares were 14% higher on Thursday.