ITM Power raises £29m for product development push
ITM Power has raised £29 million so it can accelerate the commercial development of its products and technologies following a wave of major technical milestones achieved by the firm.
Raised through a share placing to institutional investors on the London Stock Exchange, the funds will support the next phase of the Cambridgeshire company’s development strategy, which will take it through from IP protection and field trials to final manufacture and full commercialisation.
The news is the latest chapter in a remarkable year for ITM in which its share price has soared from 51 pence to over 358 pence a share, driven by advances in electrolyser and fuel cell technology that place the firm at the cutting edge of the hydrogen economy.
Jim Heathcote ITM’s chief executive, said: “I believe that the funds raised position ITM to effectively undertake the next stage of its business strategy. Our strengthened balance sheet will also help to secure ITM’s intellectual property during the implementation of our commercial plans.”
ITM believes that a low cost durable electrolyser is the critical technology necessary for the economic replacement of hydrocarbon fuels using renewable energy resources.
An electrolyser converts water and electricity into hydrogen and oxygen. These gases can be stored and used as fuel for combustion engines, fuel cells, heating and conventional electricity generation.
For hydrogen fuel to be viable, the electrolyser would need to have longevity in excess of 3,000 hours and a capital cost in the range $120-180/kW to be able to produce hydrogen which is cost competitive with fossil fuels.
In mid-April this year ITM announced that it had met these targets, sending its share price through the roof. It has been steadily climbing ever since.
Trading of ITM’s placing of 9,189,235 ordinary shares at 320p each is expected to commence on 9 May 2006.
On admission the placing shares will rank pari passu with and will be identical in all respects to, the existing ordinary shares.