ITM Power has linked up with Vitol on a joint venture for hydrogen refuelling.
On 23 March, ITM Power announced that it had concluded a strategic partnership agreement for a wholly owned subsidiary, ITM Motive, with Vitol. Motive, which owns all public hydrogen refuelling stations constructed by ITM Power, will become a 50/50 joint venture, owned between the pair of them. Vitol will invest up to £30mn and ITM Power will match this. Motive was set up as a group division in 2020, became a separate legal entity in May 2021, and will now operate as a distinct entity with its own board, comprising of three directors from ITM Power and three from Vitol.
As part of the transaction, Motive has entered into a framework agreement with ITM Power. This will see Motive appoint ITM Power as its preferred supplier for up to 240MW of electrolysis equipment, supporting Motive as it develops and rolls out new green hydrogen refuelling stations. Vitol, meanwhile, has been appointed as its preferred supplier for up to 240MW of electricity demand. This will provide green power to the network of new refuelling stations.
Both ITM Power and Vitol emphasised their belief that the market for hydrogen in transport is on the cusp of rapid expansion, supported by government incentives to accelerate transportation decarbonisation. The pair will aim to facilitate the rapid scaling up of production, distribution and demand simulation for hydrogen to transportation through the joint venture. Motive has already been working over the past 18 months to develop links with blue-chip heavy good users in the UK and is aiming to develop standard 4MW sites across the country.
