ITM Power has agreed on Heads of Terms to acquire a site for its second UK factory in Tinsley, Sheffield, from the University of Sheffield at the cost of £13.4 million.
ITM aims to build a second automated factory of some 260,000 sq. ft on the site with an annual capacity of 1.5 GW expected to be fully operational by the end of 2023 to complement the existing 1 GW/year capacity at Bessemer Park. It also plans its first international facility expected to have a capacity of 2.5 GW annually to bring total Group electrolyser capacity to 5 GW/year by the end of 2024.
The site is around 2 miles from ITM’s existing Gigafactory and Technology Centre at Bessemer Park. The acquisition is subject to the grant of full planning permission for the new factory. The overall cost of the new Sheffield factory is expected to be in the region of £50-55 million. In addition to the land cost of £13.4 million, ITM is currently allocating up to £16 million to construct the shell and a further £20-25 million for the fit-out and power supply. One of the key features of the second UK factory will be an enlarged power supply to test multiple modules of ITM’s next-generation product concurrently.
Meanwhile, at the COP26 Regional Roadshow, being held today at ITM Power’s Gigafactory at Bessemer Park, both organisations will launch their collaboration aiming to jointly develop a plan and apply for funding for a National Hydrogen Research, Innovation and Skills Centre, to be located at the University of Sheffield Innovation District.
The initial focus of the collaboration will be the development of research, innovation and skills for the hydrogen sector and will study the job creations in the hydrogen sector with career training and the promotion of hydrogen.
Dr Graham Cooley, CEO of ITM Power, said, “The planning and construction of our second, 1.5 GW capacity, factory marks the next step on delivering our strategic plan to create a blueprint for an automated PEM electrolyser manufacturing facility to be rolled out internationally.”
Sir Roger Bone, Chairman of ITM Power, commented, “[The partnership] will enable both parties to train the next generation of hydrogen engineers and scientists.”
Professor Koen Lamberts, Vice-Chancellor of the University of Sheffield, noted, “This partnership is a milestone for both partners and the region in leading the way to achieving net zero through technological innovation.”
Professor Dave Petley, VP for Innovation at the University of Sheffield, added, “We recently announced a new Sustainable Aviation Fuels Innovation Centre, adjacent to our Translational Energy Research Centre, both housed at the University of Sheffield Innovation District.”