Shares in green hydrogen producer ITM Power (ITM) surged 40% on news the firm had signed a major strategic deal. The agreement with Germany’s Rheinmetall is for ‘several hundred’ plants across Europe to make synthetic fuel for NATO armed forces.
Large-scale deployment
German firm Rheinmetall, one of Europe’s leading defence contractors, has a project called Giga PtX. The project aims to strengthen defence energy resilience, sovereign fuel capability and operational readiness through decentralised sites for synthetic fuel production.
The plan is to build several hundred plants, each with an electrolysis capacity of up to 50 MW and able to produce 5,000 to 7,000 tonnes of e-fuel annually. ITM will combine its market-leading electrolyser systems with Rheinmetall’s technical know-how, starting with the UK.
‘Our collaboration with Rheinmetall aligns the energy transition with national security priorities’ said ITM CEO Dennis Schulz. ‘The Giga PtX project represents a repeatable deployment opportunity for large-scale electrolysers, while directly supporting sovereign fuel capability and operational readiness.’
‘E-Fuels are more than a technological solution, they are a strategic necessity’, added Shena Britzen, Head of Hydrogen Program at Rheinmetall. ‘With Giga PtX, we are creating a scalable network that strengthens energy autonomy for Europe’s defence forces.’
Anyone who doubted the importance of alternative fuels, or ITM Power’s role in developing them, need doubt no more. Energy security, and the ability to supply fuel to the armed forces when and where it’s needed, is the latest catalyst.
Today’s news comes after the company won £40 million of investment and a £46.5 million grant from the UK government. These funds will be used to boost the firm’s capacity to build next generation electrolyser technology.
We said in February when the firm raised guidance the scale of orders suggests green hydrogen is the way forward. The fact the shares have almost doubled this week shows the market is finally taking that concept on board.
Read the press release here: https://itm-power.com/investors/
