ITM Power has secured a major funding package worth up to £86.5m, combining equity investment and grant support from the UK government to accelerate the rollout of its next-generation electrolyser technology.
The Sheffield-based hydrogen specialist confirmed it has raised £40m through a non-pre-emptive subscription from Great British Energy Group, alongside a proposed £46.5m grant from the Department for Energy Security and Net Zero (DESNZ), subject to regulatory approval.
The funding will underpin the development of a new large-scale automated manufacturing line in the UK, focused on producing ITM Power’s next-generation Chronos electrolyser stacks. The facility is expected to deliver annual capacity of up to 1GW, marking a significant step-up in domestic hydrogen manufacturing capability.
The combined backing represents a strong endorsement of the company’s technology and delivery credentials, following extensive technical and commercial due diligence.
Chief executive Dennis Schulz said the deal places the business at the heart of the UK’s emerging hydrogen economy.
He said: “The UK government’s support… marks a pivotal step in establishing ITM Power at the centre of the UK’s hydrogen economy and firmly positions us as a natural partner for projects in the UK.”
Schulz added that the investment will enable large-scale domestic production of the Chronos platform, which promises improved energy efficiency and lower costs, helping to accelerate industrial adoption of green hydrogen.
The funding package also strengthens the group’s financial position, with ITM Power upgrading its FY26 cash guidance to between £210m and £215m.
Energy Secretary Ed Miliband said the investment demonstrates the government’s commitment to clean energy and industrial regeneration.
He said: “This investment is the Government’s clean energy mission in action – rebuilding our energy security with clean homegrown power and good industrial jobs for South Yorkshire.”
Miliband added that the plans would help create skilled jobs and support economic growth in traditional industrial regions.
Dennis Schulz, CEO of ITM Power, said: “We are grateful for the confidence and support demonstrated by the UK government. Clean power increasingly underpins energy sovereignty and resilience, which are critical to long-term economic success against a backdrop of recent geopolitical instability.
“The UK government’s support, through a combination of equity participation and grant funding, marks a pivotal step in establishing ITM Power at the centre of the UK’s hydrogen economy and firmly positions us as a natural partner for projects in the UK.“
The proposed DESNZ grant remains subject to scrutiny under the Subsidy Control Act, with a decision expected in June 2026 before funds are formally awarded.
If approved, the combined investment will support ITM Power’s ambitions to scale production, grow market share, and move closer to profitability as demand for hydrogen infrastructure accelerates.
