Great British Energy has announced investment in ITM Power UK Ltd in South Yorkshire, which also announced an ‘in principle’ award of a £46.5 million government grant, to a expand hydrogen technology manufacturing in the UK. Great British Energy will become a shareholder in the company.
An announcement from the Department for Energy Security and Net Zero (DESNZ) said the investment helps establish South Yorkshire as “the home of Europe’s largest electrolyser factories”. It will support a 1GW expansion of an ITM facility that manufactures electrolysers, which use electricity to split water into hydrogen and oxygen.
The new investment will accelerate the delivery of ITM’s new electrolyser technology (dubbed Chronos), funding the build-out of large-scale domestic manufacturing of the platform. AJ Venter, partner at Burges Salmon, an advisor on the deal, said: “This is a strategically important transaction for ITM Power, supporting the next phase of growth for its UK manufacturing capability and the wider hydrogen economy”.
The investment came alongside a recent government confirmation at the Spending Review that it would commit £500 million to the hydrogen industry.
The government’s grant is in principle and subject to review and consideration of advice by the Subsidy Advice Unit.