UK-based hydrogen developer ITM Power says it will begin bidding into projects in the US market.
In a stock market announcement on Monday the Sheffield-headquartered firm (AIM:ITM) said it was now able to supply the same stack into both CE and American Society of Mechanical Engineers (ASME) territories.
ITM said standardisation was “an important precursor” that would enable it to use one production process and supply chain, “simplifying operations and enabling economies of scale.”
The company intends to pursue an “accelerated, asset-light entry” into the US market, and will build on existing relationships with several North American companies.
It pointed to the significant growth expectations for hydrogen in the US, not least due to the $370 billion Inflation Reduction Act (IRA), and a National Clean Hydrogen Strategy and Roadmap released in June 2023.
The latter offers strategic opportunities for domestic hydrogen production of up to 10 million tonnes of green hydrogen annually by 2030, rising to 20 million by 2040, and 50 million annually by 2050.
CEO Dennis Schulz said: “The US has the potential to become one of the largest markets for green hydrogen. The region’s green hydrogen journey has just started, which provides ITM with a tremendous opportunity to become a leading electrolyser provider as the market develops over the coming years.”
It’s hoped that huge US expectations for the clean fuel will help rebuild some of ITM’s fortunes after a tumultuous year.
At the start of the year the green hydrogen firm issued its third profit warning in eight months, sending shares spiralling.
In a trading update in January the electrolyser manufacturer said it had “become clear” that the outcome for the current financial year will be “materially different” from guidance.
Revenue was forecast to be lower, while EBITDA loss was tipped to be higher, arising from delays to customer contracts, as well as write-downs.
This summer ITM also announced the release of its new “cutting-edge” 20 megawatt (MW) core electrolysis process module – POSEIDON – which Mr Schulz said would be “a game-changer” for large-scale electrolyser deployments.
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