Sheffield-based ITM Power has taken a step towards reinforcing its commitment to green hydrogen production by signing a non-binding heads of terms agreement to sell Motive Fuels Ltd, a joint venture that was established in 2022 with Vitol Holdings SARL.
The partnership aimed to develop hydrogen refueling stations in the United Kingdom, with both companies contributing GBP30 million each in seed funding to kickstart the venture.
While the specific buyer remains undisclosed, the move is set to reshape ITM Power’s financial landscape and allow it to refocus its efforts on becoming a major player in the green hydrogen sector. The expected completion of the deal by the end of 2023 indicates a decisive shift in ITM Power’s strategy.
As a leading manufacturer of electrolysers that produce green hydrogen, ITM Power’s decision to exit the hydrogen refueling venture is driven by the desire to channel its resources and attention towards its core business. The sale of Motive Fuels will free up a substantial GBP28 million in pre-committed cash, providing ITM Power with the necessary capital to further its ambitions as a volume producer of electrolysers.
While ITM Power’s foray into hydrogen refueling has been a significant chapter in its journey, the company’s focus on scaling up electrolyser production to support the global transition to green hydrogen is clear. Andy Allen, ITM Power’s Chief Financial Officer, expressed the company’s intent to ensure that Motive Fuels finds new hands that are both capable and driven to continue its mission.
As the world embraces renewable energy and seeks innovative solutions to combat climate change, ITM Power’s strategic realignment reflects a broader trend within the energy sector. The sale of Motive Fuels is a calculated move to streamline resources and capitalize on the burgeoning demand for green hydrogen solutions, with the company’s eyes firmly set on a future where hydrogen takes center stage in the world’s sustainable energy landscape.