ITM Power has launched a new German subsidiary, Hydropulse GmbH, that will build, own, and operate small- to mid-scale green hydrogen plants — offering industrial clients hydrogen supply without upfront capital or technology risk.
The move represents a significant departure from ITM’s traditional role as a technology supplier, aligning more closely with the established model of industrial gas majors like Linde or Air Liquide. Rather than simply providing electrolysis equipment, Hydropulse will deliver green hydrogen under long-term offtake agreements, with projects tailored to a customer’s demand profile and operated remotely.
Initial markets will include Germany, the UK, and Nordic countries — regions with strong industrial demand, grid decarbonization momentum, and hydrogen deployment incentives. Hydropulse aims to target projects typically under 60MW, a segment that has seen growing interest but limited financial closure due to uncertain economics.
By shouldering the capital expenditure and operational complexity, Hydropulse removes key barriers that have hindered the bankability of green hydrogen projects. According to ITM, this structure will be particularly appealing to industrial buyers in sectors such as chemicals, steelmaking, refineries, and food processing — all of which face mounting pressure to decarbonize but have limited tolerance for project risk.
Importantly, Hydropulse will not handle power procurement. Instead, the responsibility for electricity — by far the largest operating cost for electrolysis — will rest with the customer or via a third-party power purchase agreement (PPA). This choice deliberately avoids exposure to energy price risk, which has proven a major stumbling block in project finance for hydrogen developers.
Hydropulse will benefit from “direct access” to ITM’s electrolyser technology, giving it a structural cost advantage over developers reliant on third-party OEMs. While the company has not disclosed levelized cost of hydrogen (LCOH) targets, it claims the price point will be “exceptionally low,” thanks to reduced capital intensity and streamlined system integration.
For ITM, the subsidiary also provides a new outlet for its core product line. Amid heightened competition in the electrolyser market and tightening margins, vertical integration offers a route to lock in demand and improve utilization of its POSEIDON electrolysis platform — designed for industrial-scale deployment.
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