ITM Power LON:ITM, the AIM-listed, Sheffield-based hydrogen specialist, has been a stock that The Armchair Trader has covered for a few years.
We tipped ITM Power recently as a stock to watch in 2025, expecting that this year will see some momentum start to build behind the low-carbon hydrogen and ammonia sectors, which should be good for ITM and other hydrogen companies.
The company last week announced that it has signed a contract to supply four Neptune V units, totalling 20MW, to La Française de l’Energie SA (FDE), an independent multi-energy producer. The Neptune V unit is a 5MW containerised green hydrogen plant using ITM’s Trident stack technology, known for its efficiency and compact design.
These units will be used in the Hydrogen Hub Agder project in Norway, owned by Greenstat, a subsidiary of FDE. The 20MW facility will supply green hydrogen to the maritime industry, with production starting in late 2026. A second phase of an additional 40MW is planned for 2027.
ITM Power CEO, Dennis Schulz, expressed his excitement about the Nordic green hydrogen market, while Antoine Forcinal, CEO of FDE, highlighted the significance of partnering with ITM for one of Norway’s largest green hydrogen projects.
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Aligned with UK Government’s hydrogen goals
Last week’s update follows a previous announcement in January where management said that ITM had been contracted by another European energy company to co-develop a standard design for a 10MW green hydrogen production plant.
This scheme would also use two Neptune V 5MW electrolyser systems with the customer planning to implement the design in multiple projects across the UK. Schulz said that this aligns with the UK’s goal of achieving 6GW of green hydrogen capacity by 2030, supported by initiatives like the Hydrogen Allocation Rounds (HAR) which aims to support up to 875MW of capacity.
These two sales in the opening months of the year provide a firm footing for a successful year for the Sheffield green hydrogen firm and its UK-deal said ITM, reinforces Neptune V’s leadership in the market and will enable rapid project deployment.
ITM Power was one of the first-movers in the hydrogen space, entering the market 20-years ago and designing an electrolyser system that generates green hydrogen based on proton exchange membrane (PEM) technology. As previously reported, ITM was on the wrong-end of the short-trade market a year ago.
The company published it’s latest set of results at the end of January, for the six-months to the end of October highlighting a much-needed, strategic shift towards profitability, focusing on operational efficiency, cost reduction, and improved manufacturing capabilities. The company reported revenue growth, reduced losses, and a strong cash position, driven by its Neptune V units. As the year advances, ITM said it is targeting commercial scalability and expanding its footprint in green hydrogen markets, with significant projects planned in the UK and Europe. Leadership changes and strategic investments underscore its commitment to sustainable growth.
Revenue was up 74% year-on-year to £15.5m, and although still in the red, losses fell from £18.1m to £16.8m. Cash at the end of 1H25 was £203m, down £53m y-o-y.
ITM Power has secured a record contract backlog
However, the exciting news for management and investors alike was the ITM Power had secured a record contract backlog of £135.3m, a significant step up from the £44m at the same point last year, showing ITM’s increasing momentum in the hydrogen sector. Clients secured in the period included Shell LON:SHEL, RWE [ETR:RWE] in Germany, and Yara [OSE:YAR] in Norway, as well as several front-end design contracts in Europe.
As such ITM Power reiterated its full-year guidance, advising revenue of between £18m and £22m for the year, with a loss in the range of £32m and £36m with cash in the bank of around £185m and £195m, much-improved from previous guidance of £160m to £175m and its improved guidance of £170m to £180m.
Schulz said: “Today, ITM is in the best operational shape it has ever been. Over the last two years, we have put our house in order to ensure readiness to scale with accelerating customer Final Investment Decisions.”
ITM’s shares opened the week (17th February) at 34.98p, 41% down over one-year with shares ranging between 32.2p and 71.8p over a 52-week period. The company has a market cap of £214m.
ITM Power’s strategic focus on operational efficiency, cost reduction, and expanding its green hydrogen footprint positions the company for growth in a rapidly evolving market. With strong revenue gains, a record contract backlog, and continued innovation through its Neptune V units, ITM is well-poised to capitalise on the increasing demand for sustainable energy solutions. As the company continues to align with global decarbonization goals, it remains a key player to watch in the hydrogen sector.
