ITM stock gains after securing FEED contract for EU green hydrogen production site

Investing.com -- ITM Power, a leading energy technology company, announced this morning that it has been awarded a Front-End Engineering Design (FEED) contract for a 50MW green hydrogen production site in the European Union. The contract was awarded by an undisclosed, experienced green hydrogen plant developer.

As the selected technology provider for this project, ITM Power will base the FEED on ten NEPTUNE V units, each with a capacity of 5MW. The award marks a significant step in the development of green hydrogen production in the EU, as the project is expected to start producing approximately 5kt/a of green hydrogen from the second half of 2027.

The project's Final Investment Decision (FID) is expected to be made in 2025. Once operational, the plant will supply green hydrogen to local industries, contributing to the EU's renewable energy goals and the global shift towards cleaner energy sources.

"This is another constructive update, which illustrates how the firm’s product and geographic focus offers defensiveness and more room for commercial growth vs a number of peers in a complex market backdrop," RBC Capital Markets analysts said in a note.

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Source: Investing.com