ITM Power scales hydrogen production capacity with £86.5m UK backing

This month, Sheffield-based ITM Power PLC snagged a tidy £40 million equity investment from Great British Energy, plus a £46.5 million grant from the UK Department for Energy Security & Net Zero. Together, that £86.5 million war chest will fund a brand-new, fully automated manufacturing line in South Yorkshire—geared up to deliver a massive 1 GW of annual output in next-generation Chronos electrolyser stacks. It’s a big leap toward ramping up domestic green hydrogen production, bolstering energy security, and creating quality local jobs.

Key takeaways

• £40 million equity from public backer Great British Energy, grabbing a 10.8 % stake in ITM Power.
• £46.5 million grant from the UK Department for Energy Security & Net Zero to help scale up electrolysis capacity.
• New South Yorkshire line aimed at 1 GW of annual Chronos PEM electrolyser stack output.
• Over 400 skilled roles expected in engineering, assembly and support functions.
• Boosts ITM Power’s FY26 cash guidance to £210–215 million, aligning with UK net-zero goals and industrial decarbonization.

Building the Chronos line

Right at the heart of this investment is a state-of-the-art, fully automated facility on ITM Power’s Sheffield campus. It’s designed to crank out our Chronos electrolyser stack—a proton exchange membrane (PEM) device that’s more efficient and cheaper to produce. With global demand for hydrogen production gear skyrocketing, this 1 GW line follows rigorous third-party checks and underpins our upgraded FY26 cash guidance of £210–215 million, a clear sign that order momentum is strong.

Strategic and regional impact

This deal marks Great British Energy’s biggest equity play so far. By taking 10.8 % of the company, they’re betting hard on ITM Power’s roadmap. The Department’s grant fits into a broader strategy to shore up domestic manufacturing of vital clean-energy tech. Energy Secretary Ed Miliband pointed out that this support not only strengthens our hydrogen infrastructure but also brings fresh job prospects to South Yorkshire—a region reinventing itself from steelmaking hub to advanced energy manufacturing centre.

Local jobs and supply-chain momentum

We’re looking at over 400 skilled openings spanning engineering, assembly and beyond. Local precision-engineering and materials-handling suppliers will get a boost as we scale up. Similar initiatives have sparked clusters of specialist firms elsewhere—so South Yorkshire could soon have its own thriving hydrogen production supply-chain ecosystem.

Policy alignment and market positioning

The UK government has made on-shore clean-energy manufacturing a top priority to slash import dependence. With global demand for green hydrogen on the rise—from steel mills to chemical plants—our new line sets ITM Power up to capture a bigger slice of both domestic and export markets. Securing public capital for the Chronos stack also offers a stamp of approval that can speed up industry-wide adoption.

What’s next

With planning underway, we expect construction to kick off later this year once we have the final permits. Next comes commissioning, then ramping up to full capacity. Everyone’s eyes will be on the facility’s performance and cost metrics—they’ll be key gauges of how quickly the UK can scale green hydrogen production and turn electrolyser manufacturing into a true homegrown success story.

About ITM Power

Founded in 2001 and rooted in Sheffield, ITM Power PLC specialises in designing and building PEM electrolyser systems for clean hydrogen production. With a healthy order backlog over the past two years, we’ve boosted our FY26 cash guidance to £210–215 million, driven by surging market demand and our commitment to industrial decarbonization.