ITM Power's Hydropulse signs Heads of Terms for 150 MW green hydrogen project with European refinery
- The project comprises 150 MW of ITM Power's Alpha electrolyser platform to produce green hydrogen on site.
- Hydrogen is planned to be supplied under a 10-year agreement with the refinery.
- Parties are conducting a joint FEED study and target Final Investment Decision in 2027, with production expected in 2029.
- Hydropulse will build, own and operate the plant while the refinery provides site and utilities, including power, reducing Hydropulse's exposure to electricity price volatility.
Deal and scope
Hydropulse has signed Heads of Terms with a European oil refinery for a large-scale green hydrogen project comprising 150 MW of ITM Power's Alpha electrolyser platform to produce hydrogen on site under a planned 10-year agreement.
Schedule and development
The parties are already progressing a joint Front End Engineering Design (FEED) study and are targeting a Final Investment Decision in 2027, with hydrogen production expected to commence in 2029.
Commercial model and financing
The project is planned to be built, owned and operated by Hydropulse, generating long-term contracted and recurring revenues for ITM Power; the refinery customer is planned to provide the site and utilities, including power, mitigating Hydropulse's exposure to electricity price volatility. Hydropulse says it is in constructive discussions with banks on project-level financing to enable scaling the BOO model capital-efficiently.
Strategic importance
ITM Power states that, if progressed to definitive agreements, the project would represent its largest commercial commitment to date and establish a material long-term contracted revenue stream for the Group.
Source: ITM Power