The global industrial gas and engineering company Linde Group has made a £38.0 million (US$47 million) strategic investment in electrolyzer manufacturer ITM Power plc. Linde also is entering into a 50/50 joint venture with ITM which will focus on delivering green hydrogen to large scale industrial projects, principally those with an installed electrolyzer capacity of 10 MW and above.
ITM also intends to raise up to £6.8 million through a share offering. Linde’s investment will give it approximately 20% of ITM.
ITM intends to use the funds principally to enhance its manufacturing capabilities, particularly for the development and production of large-scale 5MW electrolyzers; to facilitate product standardization and manufacturing cost reduction; to fund its initial financial contribution to the JV, and to provide working capital and balance sheet strength to support the delivery of the contract backlog and opportunity pipeline.
The major strategic investment from Linde cements a five-year relationship between us and provides ITM Power with a world leading partner that brings deep expertise in engineering, procurement and construction and a global customer base. The joint venture will enable us to focus on our core competency of the development and sale of electrolyzers, and with Linde as our partner to deliver green hydrogen at scale, The successful fundraising provides the financial resources to exploit this exciting opportunity to the full.
We are seeing increasing global demand for hydrogen as a solution to renewable energy storage needs and the decarbonization of major industrial processes. The fundraising and our partnership with Linde will help us to meet this demand on a growing scale, deliver efficiencies throughout our supply chain and represents a significant step on our pathway to medium-term profitability.—Graham Cooley, Chief Executive Officer of ITM Power