The UK government is to back Sheffield-based green hydrogen firm ITM Power with a combination of a £40 million equity investment through Great British Energy and a £46.5 million grant from the Department for Energy Security and Net Zero (DESNZ).
Shares of ITM Power rose as much as 14%. The company’s stock is up more than 150% for the past year to around 73p, giving the Sheffield firm a stock market value of roughly £450 million.
The Sheffield company said: “ITM Power is pleased to announce that we have secured an investment of £40 million through a non-pre-emptive subscription by Great British Energy Group Limited (GBE).
“Furthermore, we have received a letter from the Department for Energy Security and Net Zero (DESNZ) confirming their intention to award us a grant of £46.5 million.
“The subscription and the grant will support the establishment of operational capability to manufacture our next-generation Chronos electrolyser stack technology …
“This significant support follows a rigorous technical and commercial due diligence by a third party to assess the effectiveness and likely impact of our next-generation stack platform Chronos.
“The funds will support the establishment of a new large-scale automated manufacturing line in the UK with an annual capacity of 1 GW for our next-generation stack Chronos, underpinned by strong order momentum and growing order backlog over the last 24 months.
“With superior energy efficiency and substantially lower cost, Chronos will help us to further grow our market share, speed up the industrial adoption of hydrogen, and accelerate our growth and path to profitability.
“FY26 cash guidance improved to between £210m and £215m (from previous range of £170m-£175m), reflecting the funds from the subscription.”
ITM Power CEO Dennis Schulz said: “We are grateful for the confidence and support demonstrated by the UK government. Clean power increasingly underpins energy sovereignty and resilience, which are critical to long-term economic success against a backdrop of recent geopolitical instability.
“The UK government’s support, through a combination of equity participation and grant funding, marks a pivotal step in establishing ITM Power at the centre of the UK’s hydrogen economy and firmly positions us as a natural partner for projects in the UK.
“The funds will enable the build-out of large-scale domestic manufacturing of our next-generation Chronos platform, underpinning confidence in our technology and sustained growth.”
Great British Energy has agreed to subscribe for 71,994,240 new ordinary shares at a subscription price of 55.56p.
“The Subscription Shares will represent approximately 10.4% of the company’s issued share capital immediately following the Subscription and the Subscription Price represents a 13.7% discount to the closing mid-market price of an ITM Power ordinary share on 8 April 2026,” said ITM.
Ed Milliband, UK Energy Secretary, said: “This investment is the Government’s clean energy mission in action – rebuilding our energy security with clean homegrown power and good industrial jobs for South Yorkshire.
“Communities have long been calling out for a new generation of good industrial jobs, and with these plans we answer that call, helping to create an economy in which there is no need to leave your hometown just to find a decent job. Thanks to this government’s commitment to clean energy, a generation of young people in our industrial heartlands can have well-paid secure jobs.
“This has only happened thanks to months of intense collaboration between Great British Energy, our publicly owned energy company, the government and ITM Power. It is time to make and build things in Britain again, and with this Government’s clean energy mission, we will.”
Great British Energy CEO Dan McGrail said: “With this investment Great British Energy is backing British innovation, technology and hundreds of skilled jobs.
“This is our Energy Engineered in the UK strategy in action. We are investing in ITM Power, helping them to scale, compete globally and keep vital engineering expertise here in the UK.”