ITM Power Locks In £86.5m for Automated Gigawatt Electrolyser Line as Profitability Metrics Improve
Published on 07/10/2026 at 12:43 | Redaktion boerse-global.de
The British electrolyser maker ITM Power has crossed the final regulatory threshold for a £46.5 million government grant, and simultaneously confirmed a £40 million equity injection from the state-owned Great British Energy, bringing total fresh capital to £86.5 million. The combined package, formally ratified this week, earmarks funds for a high-throughput manufacturing line at the company's Bessemer Park site in Sheffield dedicated to the next-generation Chronos electrolyser platform.
Chief executive Dennis Schulz hailed the milestone as a decisive moment for the company's positioning inside the UK's emerging hydrogen economy. The Chronos line, designed to pump out up to 1 gigawatt of electrolyser capacity annually, will lean heavily on automation, specialised welding equipment, catalyst-coated membrane production and clean-room assembly to drive down unit costs. Crucially, Schulz noted that the architecture builds on processes already proven on the Trident line, which he argued lowers execution risk while accelerating the industrial rollout of green hydrogen.
The capital injection arrives against a backdrop of improving operational health. ITM Power booked a record £18 million in revenue during the first half of its 2026 financial year, while its order book swelled to £152 million — roughly 71% of which the company now classifies as profitable, a sharp departure from the loss-making legacy contracts that plagued earlier periods. Management had earlier lifted full-year revenue guidance to between £40 million and £43 million, citing better project execution.
Should investors sell immediately? Or is it worth buying ITM Power?
The balance sheet is equally robust. Even before the latest funding round, ITM Power expected to close the financial year with £170 million to £175 million in cash; with the grant and Great British Energy stake on top, the company now sits on nearly £200 million in liquidity and carries no debt. That war chest provides room to scale the Chronos line without near-term capital market distractions.
Analysts have taken note. Morgan Stanley recently raised its price target on the stock to 170 pence, well above the consensus of roughly 101 pence. Berenberg lifted its own target to 110 pence, explicitly citing the state-backed Chronos financing as a catalyst. The shares, however, have not fully shaken off broader sector weakness. Listed on the London Stock Exchange, the stock trades around £1.35 (€1.35), having slipped roughly 9% over the past week despite the positive news flow. That leaves it well off the 52-week high of £2.58 recorded in late May, but still up more than 90% year to date and comfortably above the 200-day moving average of £1.07.
Beyond the Sheffield plant, ITM Power is deepening its presence in large-scale industrial projects. The 200-megawatt RWE facility in Lingen, Germany, remains a flagship reference, while standardised product lines such as the ALPHA 50 and Neptune V are already in deployment. The company’s broader pitch is that the combination of government support, a clean balance sheet, and a proven product portfolio allows it to serve the booming demand for electrolysers from steel decarbonisation, data centre backup and hydrogen mobility projects across Europe.
The immediate test will be whether the verbal commitments and early-stage partnerships translate into firm, profitable orders that sustain the revenue trajectory. With the Chronos line now financially underwritten, attention shifts to execution — how quickly the 1-gigawatt capacity actually fires up, and whether ITM Power can repeat its first-half revenue performance in the second half. The next scheduled catalyst for the broader sector is Nel ASA’s half-year report on 15 July, but for ITM Power the countdown has already begun on the factory floor in Sheffield.
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