ITM Power eyes GBP 52m in fresh funds, sets up hydrogen JV with Linde

ITM Power Plc (LON:ITM) announced on Thursday the creation of a green hydrogen joint venture with industrial gases and engineering company Linde, along with several transactions to raise at least GBP 52 million (USD 64m/EUR 58m) gross in total.

Linde UK Holdings No 2 Limited plans to make a strategic investment of GBP 38 million in ITM Power by subscribing for 95 million new ordinary shares at GBP 0.4 apiece. This transaction will give Linde a 20% stake in ITM Power, the latter said.

Additionally, the hydrogen energy solutions provider seeks to raise some GBP 14 million through a proposed firm placing with existing and new institutional investors, and a further GBP 6.8 million through an open offer. The price per share for each transaction is the same -- GBP 0.4.

The company said it will use the net proceeds from the three transactions, estimated at a minimum of GBP 50.8 million, in part to facilitate its move to a new 1,000-MW production plant in Sheffield and finance the development of a 5-MW electrolyser module. Also, a portion will be spent on meeting the initial funding requirements for the JV with Linde, which will focus on delivering green hydrogen to large scale industrial projects that exceed 10 MW of installed electrolyser capacity.

"We are seeing increasing global demand for hydrogen as a solution to renewable energy storage needs and the decarbonisation 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," commented Graham Cooley, CEO of ITM Power.

(GBP 1.0 = USD 1.232/EUR 1.122)

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