ITM Power

Hydrogen energy producer ITM Power has commenced trading on AIM. The company raised £10m before expenses, placing 20m shares (just 22 per cent of the issued share capital) at 50p per share. Apparently the shares were oversubscribed with the book closed a week early. With the energy industry now looking towards alternatives to dwindling oil reserves and the negative environmental impact of burning fossil fuels, the company is looking to develop cheaper methods to tap into hydrogen energy, a 'clean' source of fuel. Using low-cost eletrolysers made of conductive polymer materials to generate hydrogen from energy sources such as solar, wind and wave, the company believes it can produce electricity fuel cells at much cheaper prices than the current cost of $3,000 (£1,651) per output kilowatt, a far cry from the $50 per output kilowatt it costs for petrol engines. ITM has a patented manufacturing process that allows a fuel cell or an entire stack of cells to be made in a single process and it can also be used for smaller products such as mobile phones. In addition, ITM has developed a low cost electrolyser that can convert carbon free energy into clean hydrogen on site and on demand. Revenues are expected to be generated from joint ventures, licensing, grant funding and niche manufacturing opportunities. Durlacher is the nominated advisor and broker. 51.5% of this highly-valued company is owned by its directors.

Sector: Gas, Water & Multiutilities

Companies: ITM Power

Market cap: £45.7m

PE Forecast: n/a

Share price: 50p

Subscribe today

Subscribe today and save 50%. Receive company watch recommendations and extensive company profile tips, released two months ahead of the market.

Sign up here