Shares of Sheffield-based green hydrogen firm ITM Power rose more than 40% on Friday after it announced a strategic collaboration with Düsseldorf-based Rheinmetall AG, an international technology group in the defence sector.
The collaboration will focus on Rheinmetall’s Giga PtX project, which aims to establish a Europe-wide network of decentralised synthetic fuel production plants for the NATO armed forces, designed to strengthen defence energy resilience, sovereign fuel capability and operational readiness.
The project envisages the deployment of several hundred decentralised production plants across Europe, each with an electrolysis capacity of up to 50 MW, capable of producing approximately 5,000 to 7,000 tonnes of e-fuel per annum per facility.
ITM Power designs and manufactures industrial-scale electrolysers for green hydrogen production. Its proprietary PEM technology, vertically integrated manufacturing, and in-house engineering capabilities enable it to supply standardised, high-performance hydrogen plants.
Rheinmetall AG operates within “land, air, sea and space domains.” With around 33,000 employees at about 180 sites worldwide, the company has been listed on the DAX 40 since March 2023 and generated sales of €9.9 billion in the 2025 financial year.
“By combining Rheinmetall’s Power–to–X expertise with ITM’s market-leading electrolyser systems, the parties are bringing together their capabilities, know-how and strong market reputation,” said ITM Power.
“The collaboration will initially focus on the UK.
“Synthetic fuels are expected to play a critical role in defence and other mission-critical sectors, where electrification is not viable, and a secure, reliable fuel supply is essential.
“The Giga PtX project therefore represents a significant potential growth market for large-scale hydrogen production technologies, underpinned by increasing focus on resilient and independent energy supply in defence applications.”
Shares of ITM Power have soared about 360% over the past year to give it a stock market value of more than £900 million.
Dennis Schulz, CEO of ITM Power, said: “Our collaboration with Rheinmetall aligns the energy transition with national security priorities.
“Reliable access to fuel is fundamental to defence capability, and decentralised production offers a structurally more resilient alternative to traditional supply chains.
“The Giga PtX project represents a repeatable deployment opportunity for large-scale electrolysers, while directly supporting sovereign fuel capability and operational readiness.
“By combining Rheinmetall’s system integration capability and defence experience with our leading electrolyser technology, together we are well-positioned to deliver scalable solutions.”
Shena Britzen, Head of Hydrogen Program at Rheinmetall AG, said: “e-Fuels are more than a technological solution – they are a strategic necessity.
“With Giga PtX, we are creating a scalable network that strengthens energy autonomy for Europe’s defence forces. What matters is not just energy security, but the ability to act independently – in logistics, in operations, and in times of crisis.”