A large portion of the funding, £40 million, comes from an investment by Great British Energy (GBE). GBE is a state-owned company established in 2025 with a mandate to invest in modern energy technologies, catalyse further investment in the United Kingdom, advance technologies and build supply chains. In total, the British government plans to invest more than £8 billion through this vehicle over the current parliamentary term.
In addition, the UK Department for Energy Security and Net Zero (DESNZ) has provided written confirmation of its intention to award a grant of £46.5 million to ITM Power. This grant is still subject to a state aid review, which is expected to be completed by June 2026. Only once the review is concluded favourably can the grant be contractually finalised.
The funds from both channels are earmarked for the construction of an electrolyser factory where stacks of the "Chronos" generation are to be manufactured. ITM Power also points to a growing order backlog over the past 24 months and strong momentum. With the government funding, ITM Power is raising its cash guidance for 2026 to between £210 million and £215 million.
ITM describes the investment as "a clear vote of confidence in our technology and our ability to deliver." The government is also underscoring its commitment to sovereign technologies and domestic clean energy manufacturing in the United Kingdom, the company added.
Strong boost for PEM electrolyser manufacturing in Europe
ITM Power already operates one of the few gigawatt-scale electrolyser factories in Europe at its site in Sheffield, UK, although it currently produces the previous-generation Trident stack. Other manufacturing facilities of a similar scale exist in Europe, such as Siemens Energy's 1 GW plant in Berlin, Germany (operational since 2023). Nel also operates a facility in Herøya, Norway, with a capacity of 500 MW that has been in operation since April 2022 and produces both PEM and alkaline electrolysers. McPhy, which filed for insolvency in 2025 and whose gigafab was sold to John Cockerill, had also planned a gigawatt-scale manufacturing facility.
UK Energy Secretary Ed Miliband said: "This investment puts the government's clean energy mission into practice. It strengthens our energy security through clean, domestic energy and creates high-quality industrial jobs in South Yorkshire." The DESNZ supports projects through its Hydrogen Allocation Round (HAR) programme.
The Chronos production line is to be set up at the Sheffield site. Planned investments include automated production equipment, membrane coating, electrode welding, coating technologies, stack assembly as well as cleanrooms and test systems. The total investment is expected to amount to up to £120 million, spread over three years, with production start targeted for 2028.
For its participation, GBE will subscribe to approximately 72 million new shares at 55.56 pence per share. This corresponds to roughly 10.4% of the enlarged share capital. GBE has committed to holding these shares for a minimum of twelve months and not increasing its stake beyond 29.99%. The state-owned company will also receive the right to appoint a board observer and, where appropriate, a non-executive director. The DESNZ grant of £46.5 million for capital expenditure is to be disbursed on a quarterly basis.
In return, ITM Power commits, among other things, to creating approximately 250 new jobs in the United Kingdom.
ITM Power says it has 26 years of experience in the technology, strong vertical integration and proprietary intellectual property. Its customers include Shell, RWE and Linde. The company states that projects totalling 500 MW are currently in execution, with a further 550 MW in the pipeline.
The new Chronos stack generation was developed over more than two years and builds on the Trident platform. Chronos is expected to deliver significant improvements in cost and energy efficiency, offer higher power density and exhibit lower degradation.
