ITM gets power play on Isle of Wight

ITM Power, the clean fuel specialist, is to be a major player in a project to create a so called "smart grid" on the Isle of Wight.

The project will see a hydrogen energy store and vehicle refuelling system integrated into the electricity grid of the island.

The total project value is £4.66m, which is government funded. ITM will receive £1.3m to design and build two refuellers.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Other partners on the project, called Ecoisland, include Toshiba, IBM and SSE.

"Ecoisland represents a quantum leap for renewable technologies in the UK" said Dr Graham Cooley, Chief Executive Officer of ITM.

"ITM Power's energy storage and clean fuel technology will be at the heart of this project that gives us an ideal opportunity to link our equipment with world leading smart grid technologies to create the integrated energy grid of the future."

In a separate announcement, ITM revealed a new cost structure for the hydrogen produced by its HFuel electrolyser platform. Hydrogen is projected to cost £6.23/kg within a 10 year capital amortisation period and £3.49/kg after capital amortisation. The company claims this is a "significant reduction in hydrogen cost."

After an initial surge this morning of nearly 5%, the stock has retreated, to be broadly flat on yesterday's close at 10:43.

BS