TIDMITM
RNS Number : 5480Q
ITM Power PLC
30 November 2016
30 November 2016
This announcement contains inside information.
ITM Power plc
("ITM Power" or "the Company")
National Grid HyDeploy Consortium wins GBP7m Ofgem Funding for
UK Power-to-Gas
0.5MW electrolyser sale
ITM Power (AIM: ITM), the energy storage and clean fuel company,
is pleased to announce that, as part of the HyDeploy consortium, it
will be supplying a 0.5MW electrolyser to a programme to
demonstrate the use of blended hydrogen in the UK gas grid. The
GBP6.8 million project, funded by Ofgem and led by National Grid,
is a key enabling project which will establish a framework for
hydrogen gas-grid injection in the UK and open up a new UK
Power-to-Gas market.
According to National Grid, "The three year project will begin
in 2017 and the results will be used to inform a further public
trial of the use of hydrogen-blended natural gas in the UK grid,
with the intention of then rolling out the use of hydrogen blends
nationwide."
The HyDeploy consortium includes National Grid, Northern Gas
Networks, Keele University, The Health and Safety Laboratory (HSL),
ITM Power and Progressive Energy. It is supported by gas experts
KIWA Gastec and engineering company Otto Simon.
Dr Graham Cooley, CEO, ITM Power, commented: "This award by
Ofgem to fund a demonstration of the use of hydrogen in the gas
grid is the first step towards the creation of a UK Power-to-Gas
market, which will play an important part in the decarbonisation of
the U.K. gas grid. We are delighted to be a contributor to setting
out the structure and benefits to the public of this new
market."
The text below is from an announcement made today by National
Grid:
GBP7 million for ground-breaking green heating scheme at Keele
University
-- Pioneering 'green gas' scheme secures GBP7 million of Ofgem innovation funding
-- Hydrogen heating pilot project at Keele University aims to cut carbon emissions
-- Scheme could pave the way for a future low carbon gas grid
A ground-breaking pilot scheme that could transform the way
Britain heats its homes and industry, while tackling climate
change, has today (30 November) won GBP7 million in Ofgem
funding.
National Grid Gas Distribution, together with Northern Gas
Networks and the HyDeploy Consortium, has been awarded GBP6.8
million by Ofgem's Network Innovation Competition. The funding will
be used for a pioneering green heating initiative, using Keele
University's gas network in Staffordshire.
The HyDeploy project aims to inject hydrogen into the existing
natural gas network. Hydrogen is a clean, carbon-free gas that does
not contribute to climate change.
It would make up a maximum of 20% of the volume of gas in the
network. Those using the gas won't notice any difference to their
supply, no changes will be required to gas appliances and it will
be no less safe than using natural gas.
If the project is successful, this will enable hydrogen to be
blended with natural gas in gas networks across the country.
Potentially, the project could prevent 120 million tonnes of carbon
reaching the atmosphere by 2050.
The project will help towards the Government's tough
'decarbonisation' targets. It has pledged to cut Britain's carbon
dioxide emissions by 80% of 1990 levels by 2050. Heating accounts
for one third of emissions.
Using Britain's existing world-class gas network, HyDeploy could
pave the way for a clean, low carbon gas grid, keeping homes warm
and powering industry.
David Parkin Director of Network Strategy at National Grid Gas
Distribution, said: "Ofgem's decision to award National Grid GBP6.8
million recognises the important role for the UK's world class gas
grid in delivering low carbon heat. We believe introducing a
hydrogen blend nationally has the potential to save over 6 million
tonnes of carbon emissions every year."
Professor Mark Ormerod, Deputy Vice Chancellor and Provost of
Keele University, said: "Energy and sustainability is a key
overarching institutional priority for Keele University, and we are
delighted to be a partner in this important, highly relevant and
prestigious project. This collaborative project tackles one of the
major societal challenges and has the potential to be highly
impactful and lead to a significant reduction in carbon
emissions".
Martin Alderson, Asset Management Director for Northern Gas
Networks, said: "This is an extremely exciting time for the energy
industry. We believe this project will prove blended hydrogen gas
can be distributed and used safely and efficiently in the existing
gas network, an essential pre-requisite for the wider deployment of
clean, cost-effective hydrogen in the UK gas grid."
The three-year pilot will start in 2017. The Ofgem funding,
together with GBP760k contributed by National Grid and Northern Gas
Networks, will be used to provide hydrogen production and injection
facilities at Keele University and to run a rigorous experimental
testing and safety programme.
Keele was viewed as the perfect test site for the project. Keele
is Britain's biggest university campus. The university owns and
operates its own gas network, which is independent of the national
gas network.
With more than 340 residential, teaching and business premises,
the campus closely resembles a small town. This project will run on
part of the university's gas network, which supplies 17 buildings
and more than 100 homes for researchers and staff.
The project has been developed by National Grid Gas
Distribution, Northern Gas Networks and the HyDeploy consortium.
The consortium includes Keele University, The Health and Safety
Laboratory (HSL), hydrogen production company ITM Power and clean
energy firm Progressive Energy. It is supported by gas experts KIWA
Gastec and engineering company Otto Simon.
For further information, please visit www.itm-power.com or
contact:
ITM Power plc
Graham Cooley, CEO +44 (0)114 244 5111
Zeus Capital
Andrew Jones / Dan Bate / Hugh Kingsmill
Moore +44 (0)20 3829 5000
Tavistock
Simon Hudson / James Collins +44 (0)20 7920 3150
About ITM Power plc:
ITM Power manufactures integrated hydrogen energy solutions
which are rapid response and high pressure that meet the
requirements for grid balancing and energy storage services, and
for the production of clean fuel for transport, renewable heat and
chemicals. ITM Power plc was admitted to the AIM market of the
London Stock Exchange in 2004. The Company received GBP4.9m as a
strategic investment from JCB in March 2015. The Company signed a
forecourt siting agreement with Shell in September 2015. The Group
currently has GBP18.27m of projects under contract and a further
GBP2.79m of contracts in the final stages of negotiation, totaling
GBP21.06m, subject to exchange rate variation. ITM Power is a
founder member of the Social Stock Exchange.
-ends-
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