ITM Power to buy site for 2nd gigafactory in Sheffield

UK-based hydrogen energy solutions provider ITM Power Plc (LON:ITM) has secured a site for its second UK gigafactory about 2 miles (3.2 km) from its existing facility, which is located at Bessemer Park in Sheffield.

The company said today it has agreed heads of terms to purchase a site in Tinsley, Sheffield from the University of Sheffield for GBP 13.4 million (USD 18.2m/EUR 15.7m). It plans to build a factory with an annual capacity of 1.5 GW there, with full operations now targeted by the end of 2023.

The plot, part of the University of Sheffield Innovation District, has outline planning consent and a full design brief agreed with the city council. The purchase is contingent on the obtaining of full planning permission for the new plant.

ITM Power stated readiness to invest in a second gigawatt-scale polymer electrolyte membrane (PEM) electrolyser factory back in April. Recently, the company raised GBP 250 million to scale up its electrolyser manufacturing capacity to 5 GW by 2024 by adding a second UK factory and a first facility abroad.

The second UK factory will complement ITM Power’s existing 1 GW capacity at Bessemer Park, officially opened in August, and will serve as a template for its first international plant, which is expected to have an annual capacity of 2.5 GW.

The new Sheffield facility is estimated to represent an overall investment of GBP 50 million to GBP 55 million, including the land cost.

ITM Power will also later today launch a collaboration with the University of Sheffield. The parties are looking to jointly develop a plan and apply for funding for a National Hydrogen Research, Innovation and Skills Centre, to be situated next to ITM Power's proposed new site.

(GBP 1 = USD 1.355/EUR 1.170)

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