Climate Report & H2 Trailblazers9 May 2019 22:27
Courtesy if Marketmover on the ITM board. Have added selected text.
Climate report augurs well for hydrogen trailblazers
https://www.proactiveinvestors.co.uk/companies/news/219972/climate-report-augurs-well-for-hydrogen-trailblazers-219972.html
10:54 09 May 2019
New government report on climate change looks to have great significance for companies such as ITM Power, AFC Energy and Ceres Power
New government report on climate change looks to have great significance for companies such as ITM Power, AFC Energy and Ceres Power
If Britain is serious about cutting greenhouse gas emissions by material levels across energy generation, transportation, industry and heating, there’s only one substance worth talking about: hydrogen.
The focus on hydrogen was one of the central themes to emerge from this month’s report from the Committee on Climate Change (CCC) and has great significance for a select band of ambitious London-listed companies, including ITM Power PLC (LON:ITM), AFC Energy PLC (LON:AFC) and Ceres Power Holdings PLC (LON:CWR).
This prediction implies the country will need to build up to 567 megawatts of electrolysis per year for 30 years.
Implications for companies
Such a ramping up of hydrogen facilities across industry, energy and transport is expected to translate into a pick-up for a range of UK-listed companies, which is why investors such as Schroders has been stacking up investments in this sub-sector of the cleantech area.
One of Schroders investments is in AIM-listed ITM Power, which makes electrolyser technology that is already being taken up in consumer and industrial applications. One of these is a collaboration where Royal Dutch Shell PLC (LON:RDSB) is rolling out hydrogen refuelling stations using ITM tech for passenger and commercial vehicles over the next five years.
Reflecting on the CCC report, ITM chief executive Graham Cooley said: “For the first time, the UK has accepted they will need shedloads of the equipment that we make. It’s the first time that the numbers have been officially run on how much power is needed for a full renewable network and energy storage.”
“Hydrogen is the only solution”
With the electricity grid almost at full stretch now and the commission estimating that all new cars and vans should be electric within 16 years, “there is no way the grid can cope with that amount of extra demand”, says Adam Bond, chief executive of AFC Energy, developer of an electric vehicle charger based on its hydrogen fuel-cell technology.
“Hydrogen is the only solution to meet the demand,” Bond said, “and that is why the climate change report mentioned it on almost every page.”
AFC last month signed a deal with Rolec Services, one of Europe’s largest manufacturers of EV charging points, to create a system that integrates AFC’s technology and can be sold across Rolec's existing and AFC’s emerging network of EV charging distributors and customers.