ITM Power is set to enter the US market, with the country’s $370billion Inflation Reduction Act presenting a ‘tremendous opportunity’ in the production of green hydrogen.
The London-listed hydrogen firm told investors on Monday it will ‘pursue an accelerated, asset-light entry into the US market’.
ITM said the ‘US is widely recognised as having the potential to become one of the largest markets for electrolysers’.
Electrolysers use electricity to split water into hydrogen and oxygen, enabling the production of low-emission hydrogen.
In a statement, the hydrogen firm reported that it will ‘pursue an accelerated, asset-light entry into the US market’
ITM said a key driver of the opportunity offered by green hydrogen demand is the $370billion (£304million) IRA.
President Joe Biden’s IRA aims to curb inflation though, among other measures, investing in domestic energy production while promoting clean energy.
This includes tax credits for green hydrogen projects, which are defined as producing less than four kilograms of carbon dioxide per kilogram of hydrogen.
It complements the $9.5billion investment for clean hydrogen through the Infrastructure Law.
While low carbon, green hydrogen is still relatively expensive when compared to other renewables like solar and wind.
The US National Clean Hydrogen Strategy and Roadmap, released in June 2023, forecast production of 10 million metric tonnes (MMT) of clean hydrogen annually by 2030, 20 MMT annually by 2040, and 50 MMT annually by 2050.
Dennis Schulz, CEO of ITM, said: ‘The US has the potential to become one of the largest markets for green hydrogen.
‘The region’s green hydrogen journey has just started, which provides ITM with a tremendous opportunity to become a leading electrolyser provider as the market develops over the coming years.’
ITM Power shares were up 3.41 per cent to 71.60p in morning trading on Monday.
In August, the hydrogen firm results showed that pre-tax losses had risen to £94.2million year-to-year to 30 April from £39.8million, with the group stating this was ‘in line with the £85m to £95m guidance’.
The Sheffield-based company also revealed that full-year revenues were ahead of the £2million guidance at £5.2million although still below the £5.6million it recorded last year.
The group also predicted that it expects revenue to increase ‘between £10million and £18million from commercial projects in execution’ for the next financial year.
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