Itm Power Regulatory News (ITM)

28 April 2016

ITM Power plc

("ITM Power" or "the Company")

1.5 MW Electrolyser Deployment in Scotland

ITM Power (AIM: ITM), the energy storage and clean fuel company, is pleased to announce the award of a €5m EU grant for the BIG HIT (Building Innovative Green Hydrogen systems in an Isolated Territory) project funded by the Fuel Cells and Hydrogen Joint Undertaking ("FCH JU"). The FCH JU selected BIG HIT as the only hydrogen project in its Hydrogen Territories tender to receive funding. ITM Power is the electrolyser provider and will receive €2.27m over five years.

The Orkney Islands have over 50MW of installed wind, wave and tidal capacity, generating over 46GWhr per year of renewable power, and has been a net exporter of electricity since 2013. Energy used to produce the hydrogen for BIG HIT will be provided by the community-owned wind turbines on Shapinsay and Eday, two of the Orkney islands.

At present the Shapinsay and Eday turbines are often 'curtailed', losing on average more than 30% of their annual output. In addition, their electricity output is limited by grid capacity restrictions in Orkney. Production of hydrogen from this curtailed energy by electrolysis of water gives 'green' hydrogen from renewable energy sources with a very low carbon footprint.

BIG HIT builds on foundations laid by the Orkney Surf 'n' Turf initiative, which will see production of hydrogen on the islands of Eday and Shapinsay using wind and tidal energy. These are both world leading pilot and demonstration projects, which deploy a fully integrated model of hydrogen production, storage, transportation and utilisation for low carbon heat, power and transport. These projects address a number of operational and development challenges including the logistical and regulatory aspects for transport of hydrogen fuel between islands, and the orientation and familiarisation with new hydrogen building and transport technologies.

BIG HIT will enable the deployment of 10 electric vans, which will each be fitted with a hydrogen fuel cell range extender. A hydrogen refuelling station will be constructed in or near to Kirkwall at a site to be selected. The hydrogen fuel cells in these adapted vans will give them a wider range than their battery-powered electric counterparts. In order to demonstrate the potential scope hydrogen also has for heat uses in Orkney, BIG HIT will install two hydrogen-powered boilers at suitable premises to provide zero carbon heat.

Dr Graham Cooley, CEO, ITM Power commented: "Big Hit is a major step in turning the Orkney Islands into a genuine Hydrogen Territory. The deployment of 1.5MW of electrolysis and the operation of hydrogen logistics to provide a transport fuel and renewable heat is a very important part of that process."

About ITM Power plc:

ITM Power manufactures integrated hydrogen energy solutions which are rapid response and high pressure that meet the requirements for grid balancing and energy storage services, and for the production of clean fuel for transport, renewable heat and chemicals. ITM Power plc was admitted to the AIM market of the London Stock Exchange in 2004 and is a founder member of the Social Stock Exchange. The company received £4.9m as a strategic investment from JCB in March 2015; signed a forecourt siting agreement with Shell in September 2015 and a fuel agreement with Toyota in October 2015. The Company currently has £13.80m of projects under contract and a further £6.28m of contracts in the final stages of negotiation constituting a total pipeline of £20.08m.

www.itm-power.com

About the FCH JU

The Fuel Cells and Hydrogen Joint Undertaking (FCH JU) is a unique public private partnership supporting research, technological development and demonstration activities in fuel cell and hydrogen energy technologies in Europe. Its aim is to accelerate the market introduction of these technologies, realising their potential as an instrument in achieving a carbon-lean energy system. The three members of the FCH JU are the European Commission, fuel cell and hydrogen industries represented by the NEW Industry Grouping and the research community represented by Research Grouping N.ERGHY

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