ITM Power (AIM:ITM) said its Build, Own, Operate subsidiary Hydropulse has signed Heads of Terms with a European oil refinery for a large-scale green hydrogen project.
The London-listed, AIM-quoted company designs and manufactures proton exchange membrane electrolysers, and the planned facility would deploy 150MW of its Alpha electrolyser platform to produce hydrogen on site.
Hydropulse is ITM Power's build-own-operate vehicle, a model the company has been testing elsewhere, including through its strategic partnership with Protium Green Solutions on the smaller 15MW Cromarty project in Scotland, where the partners are targeting a final investment decision in December.
The refinery project is considerably larger in scale, and the parties are already running a joint Front End Engineering Design study, targeting a final investment decision in 2027 and hydrogen production starting in 2029.
Hydropulse would build, own and operate the plant under the 10-year agreement, generating long-term contracted revenue for ITM Power, while the customer is planned to supply the site and utilities, including power, which would limit Hydropulse's exposure to electricity price swings.
The company said it is in constructive discussions with banks on project-level financing to scale Hydropulse in a capital-efficient way.
"At 150 MW and with a planned 10-year contract duration, this project demonstrates the scale and potential of our BOO model," said chief executive Dennis Schulz, adding that if progressed to definitive agreements it "would represent our largest commercial commitment to date and establish a material long-term contracted revenue stream for the Group."
The project now moves through engineering, commercial and financial workstreams toward the targeted 2027 final investment decision.