ITM Power said it has received €5m in funding from the ‘Fuel Cells and Hydrogen 2 Joint Undertaking’ (FCH2-JU), a public private partnership of the European Commission.
The €5m was awarded to the Oyster Project - a consortium which includes the energy storage and clean fuel firm, Orsted, Siemens Gamesa Renewable Energy, and Element Energy.
The funding will allow it to investigate the feasibility and potential of combining an offshore wind turbine directly with an electrolyser and transporting renewable hydrogen to shore.
The group said the consortium would develop and test a megawatt-scale fully marinised electrolyser in a shoreside pilot trial, with the project being coordinated by Element Energy.
To realise the potential of offshore hydrogen production, there is a need for compact electrolysis systems that can withstand harsh offshore environments and have minimal maintenance requirements while still meeting cost and performance targets that will allow production of low-cost hydrogen. The project will provide a major advance towards this aim.
Shares in ITM Power have skyrocketed over 150% in value since the beginning of November 2020 to open 4.21% higher at 593p this morning following the announcement.
It said the electrolyser system will be designed to be compact, to allow it to be integrated with a single offshore wind turbine, and to follow the turbine's production profile.
Furthermore, it said the electrolyser system will integrate desalination and water treatment processes, making it possible to use seawater as a feedstock for the electrolysis process.
The OYSTER project partners outlined that they share a vision of hydrogen being produced from offshore wind at a cost that is competitive with natural gas (with a realistic carbon tax), ‘thus unlocking bulk markets for green hydrogen making a meaningful impact on CO2 emissions, and facilitating the transition to a fully renewable energy system in Europe.’
They say the project is a “key first step” towards the development of a commercial offshore hydrogen production industry which is planned to start in 2021 and run to the end of 2024.
Commenting on the anticipated energy project, Dr Graham Cooley, CEO of ITM Power, stated that, "ITM Power are delighted to be part of this exciting project, working alongside industry leaders to explore the potential to harness wind for offshore green hydrogen production."
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