ITM Power (AIM: ITM), the energy storage and clean fuel company, announces its audited results for the
year ended 30 April 2014. The Company currently has £6.550m of projects under contract.
Summary
Commercial Progress in year
- £5.140m of projects under contract at year end
- Won £2.800m contract to supply three refuelling stations in London
- A total of £2.000m refueller build contracts won with Californian Energy Commission
- Thüga Group’s Power-to-Gas plant officially commissioned and operational on schedule
- Successful injection of hydrogen into the German gas grid
- Participation in the UK, US, Swiss and French Hydrogen Infrastructure Programmes
- Optimisation of standard product platforms and reduction in standard product cost
- Partnership with NRM, Germany for Power-to-Gas projects
-Gas network optimisation contract with AMEC and National Grid
Full release here: http://www.itm-power.com/news-item/results-for-the-year-ended-30-april-2014/
2. Contents:
• Introduction
• Power-to-Gas Energy Storage
• Power-to-Gas Projects
• Clean Fuel Projects
• Corporate Development
• Key Performance Indicators
• Results
• Summary
FINAL RESULTS PRESENTATION:
FOR THE YEAR ENDING APRIL 2014
30TH JULY 2014 | TAVISTOCK | FINSBURY PAVEMENT | LONDON
3. RAPID RESPONSE
HYDROGEN ENERGY SYSTEMS
RAPID RESPONSE ELECTROLYSER
ITM Electrolyser
Clean Fuel
Energy StorageWind Power
Grid
Scalable | Rapid Response | Self pressurising
6. REFERENCE PLANT
REFERENCE PLANT | GERMANY | UK | USA
A major barrier to entry has been overcome
• NRE has been invested
• Products have been standardised
• Compliance in UK | EU | USA
• Power-to-Gas and Refuelling Stations
HYDROGEN ENERGY SYSTEMS
7. REGULATIONS, CODES & STANDARDS
A leading role in shaping hydrogen deployment
• Secretary of BCGA Technical Steering Committee 9
• Secretary and UK Expert to ISO Technical Committee 197
• UK Expert to ISO working groups…
• …for electrolysers, dispensers & H2 quality
• Next Chair of BSI PVE/3/8
HYDROGEN ENERGY SYSTEMS
COMPLIANCE
Code of Practice 41: H2 Fuelling Stations
Design & Construction
Maintenance & Operation
ISO 19880-1: H2 Fuelling Stations
ISO 22734: Electrolyser
ISO 14687: H2Quality
BSI PVE/3/8: H2 Systems Standardisation
Production & Storage
Transport, Measurement & Use
9. GROWING WIND GENERATION
ENERGY STORAGE: THE NEED
HYDROGEN ENERGY SYSTEMS
• Evidence of grid balancing problems
from Germany and Denmark
• Problems start at 20% capacity
• UK hit this threshold at the
end of 2013
• Energy Storage is a Market Pull
Source: ITM Power plc, data from BWEA
10. THE NEED: GRID BALANCING
BALANCING SUPPLY AND DEMAND:
• A total of £725m paid for balancing services in 2010–11
• Estimates in 2020 are: circa £1.9bn – £5.9bn pa
• Tariffs already operational in the UK: FCDM response sub 2 seconds
HYDROGEN ENERGY SYSTEMS
12. ENERGY STORAGE TECHNOLOGIES
ENERGY STORAGE TECHNOLOGIES
Power-to-gas is efficient | long term | low energy cost
Source: ITM Power plc
HYDROGEN ENERGY SYSTEMS
13. 0%
5%
10%
15%
20%
25%
30%
35%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
0 2 4 6 8 10 12
Fractionwindoutputcurtailed
Hydrogenfraction(vol%)
Excess wind (TWh pa)
725 TWh p.a. natural gas consumption, 30 GW wind capacity (2020)
Hydrogen fraction
Curtailment
HYDROGEN FRACTION VS EXCESS WIND LEVELS
ENERGY STORAGE | CLEAN FUEL
• Capturing 2.8 TWh pa of excess wind (ie 4% of 2020 output)
• Requiring 978MW of electrolysis at 30% utilisation (£1.7bn market)
• Results in average national hydrogen content of 0.5%, reducing carbon footprint by 0.2%
Source: ITM Power plc
POWER-TO-GAS IN THE UK
15. FIRST P2G SALE: THÜGA GROUP
Won competitive tender on performance and price
• One of the world’s largest utility groupings
• 18,200 employees
• 5.7m customers (electricity, 3.6m, gas 2.1m)
• Sales of €21.3bn
• Plant located at Mainova AG in Frankfurt
• A pipeline of potential customers
360KW POWER-TO-GAS MODULE
Source: Thüga-Gruppe
HYDROGEN ENERGY SYSTEMS
16. A challenging time frame
• Discussions April 2011
• Competitive tender process
• Order March 2013
• On site in September 2013
• CE marked in December 2013
• TÜV permit in December 2013
• Hydrogen injected in December 2013
THE SCHEDULE
THE SCHEDULE
HYDROGEN ENERGY SYSTEMS
17. A challenging time frame
• Discussions April 2011
• Competitive tender process
• Order March 2013
• On site in September 2013
• CE marked in December 2013
• TÜV permit in December 2013
• Hydrogen injected in December 2013
THE SCHEDULE
THE SCHEDULE
HYDROGEN ENERGY SYSTEMS
Build
•Procurement
•Manufacture
•Control system design
CE Mark
•PED
•EMC
•Machinery
•ATEX
Commission
•Loop checks
•Acceptance
•Performance
Permit
•Documentation
•Audit
•Certificate
18. P2G PLANT & VISITOR CENTRE
HYDROGEN ENERGY SYSTEMS
20. Beyond the Thüga project
• Thüga II
• P2G in Germany, USA and UK
• Methanation | BioGas upgrading
• Ammonia | Urea (2% of global energy)
POWER-TO-GAS PROJECTS PIPELINE
POWER-TO-GAS PROJECTS PIPELINE
HYDROGEN ENERGY SYSTEMS
21. CPUC Sets the energy storage mandate for the power sector
• Energy storage target of 1,325 megawatts
• 3 major CA utilities by 2020
• Optimization of the grid, including peak reduction
• Integration of renewable energy
• Reduction of GHG emissions to 80% below 1990 levels by 2050
“This decision represents an important first step in encouraging
the storage market and supporting grid reliability,”
Commissioner Carla J. Peterman, the lead Commissioner for this proceeding.
CALIFORNIA ENERGY STORAGE
1.3GW ENERGY STORAGE MANDATE IN CALIFORNIA
HYDROGEN ENERGY SYSTEMS
23. FUEL CELL CARS
WHAT IS A FUEL CELL CAR?
An EV drive train that’s refuelled rather than recharged
• Refuel in 3 minutes
• Range 400 miles
• Managed export of
energy from the grid
HYDROGEN ENERGY SYSTEMS
24. FCEV ALLIANCES
2013 | FCEV ALLIANCES
Four fuel cell manufacturers have
emerged; with 8 OEM’s rolling out cars
• Hyundai
• Nissan: Ford | Daimler
• Toyota: BMW
• Honda: GM
HYDROGEN ENERGY SYSTEMS
28. Hydrogen Energy Storage Smart Grid
• £2.4m TSB consortium grant
• Installation of 80kg/day and 15kg/day refuellers at 350bar
• Fleet of 20 vehicles (HICE and FC)
• Hydrogen energy storage system
• Balancing supply and demand
ISLAND HYDROGEN
HYDROGEN ENERGY SYSTEMS
30. UK REFUELLING STATIONS
UK REFUELLING STATIONS
EcoIsland (TSB)
1x80kg | 1x15kg
£1.5m
HyFive (EU)
3x80kg
€3.0m
OLEV £10m Call
6x80kg
Tender
H2Mobility
65x80kg
Tender
H2Mobility
1,000 Stations
Tender
Development of a UK Infrastructure Business
• Grant funded Capex and Opex
• Maintenance contract with each award
• OLEV £10m call in Sept | OLEV £60m call in early 2015
• OLEV have indicated £100m allocated for hydrogen (un-announced)
HYDROGEN ENERGY SYSTEMS
31. Selected by the LHP as the 2013 HRS partner
• LHP Funded the ITM Power 2013 JTI submission
• 100 Fuel Cell Electric Vehicles from 5 OEMs
• ITM to build 3 refuelling stations in London
• Backing from the Mayor’s office
• €18m total EU (JTI) funding
• £2.8m to ITM Power
LONDON HYDROGEN PARTNERSHIP
HYDROGEN ENERGY SYSTEMS
33. FCH JU 2: 2014
FCH JU 2: 2014
HYDROGEN ENERGY SYSTEMS
FCH budget €1.4bn, managed by the New Energy World
• Development: 100% of the total eligible cost
• Demonstrations: 70% maximum will apply for profit making entities
Pillar 1: FCH technologies for Transportation Systems
• Road transport
• FCEV
• HRS infrastructure
Pillar 2: FCH Technologies for Energy Systems
• Hydrogen as a flexible link between renewable energy both mobile and stationary systems.
• Storage of renewable electricity and grid balancing, including hydrogen blending in the natural gas grid
• Fuel cells in power
• Power systems for domestic, commercial, municipal and industrial applications
34. CALIFORNIA REFUELLING STATIONS
CALIFORNIA REFUELLING STATIONS
2013 PON
Hyundai Chino
Won $1.3m
2014 PON
Riverside
Won $2.1m Bid
2015 PON
10x100kg
Tender
8 More PON’s
80x100kg
Annual Tender
California Hydrogen Infrastructure Deployment
• Fund of $200m for 100 hydrogen stations with up to $20m a year for 10yrs
• 2012: ITM Power Inc. established in California
• 2013: ITM Power Inc. wins H2 station award with 2 North American partners at Hyundai, Chino
• 2014: ITM Power Inc. wins H2 station award with 2 North American partners at the City of Riverside
HYDROGEN ENERGY SYSTEMS
37. AWARENESS
AWARENESS
HYDROGEN ENERGY SYSTEMS
Source: Thuega
National and International Coverage
• Radio 4: Costing the Earth
• Guardian: Power-to-Gas energy storage
• Royal Academy of Engineering presentation
• Platts on Power-to-Gas energy storage
38. KEY PERFORMANCE INDICATORS
KEY PERFORMANCE INDICATORS
Clear measures of business performance
•Technology
•Cumulative test hoursKPI 1
•Technology
•Cumulative installed capacityKPI 2
•Commercial
•Product salesKPI 3
•Commercial
•Project incomeKPI 4
•Commercial
•Projects under contractKPI 5
•Financial
•Headcount and staff costsKPI 6
HYDROGEN ENERGY SYSTEMS
39. KPI 1: CUMULATIVE TEST HOURS
ENERGY STORAGE | CLEAN FUEL
KPI 1: CUMULATIVE TEST HOURS
Cumulative test hours
• Test stands fully automated & data logged
• Qualifying performance of key cell & stack components
• Developing predictive tools
40. KPI 2: INSTALLED CAPACITY
KPI 2: INSTALLED CAPACITY
Cumulative capacity
• Tracks the technology deployment
• Tracks available reference plant
• Installed capacity is a key metric in tender documents
HYDROGEN ENERGY SYSTEMS
41. KPI 3: PRODUCT SALES & PROJECT INCOME
KPI 3: PRODUCT SALES & PROJECT INCOME
Customers are often confidential; we announce when
possible. Order book needs strong balance sheet
For year ending April 30th 2012
• £1.46m total inflow
• £0.48m product sales
• £0.98m grant funding
For year ending April 30th 2013
• £1.45m total inflow
• £0.09m product sales
• £1.36m grant funding
For year ending April 30th 2014
• £3.08m total inflow
• £1.13m product sales
• £1.96m project funding £0
£500,000
£1,000,000
£1,500,000
£2,000,000
£2,500,000
£3,000,000
£3,500,000
2010 2011 2012 2013 2014
Sales Revenue
Project Income
HYDROGEN ENERGY SYSTEMS
42. KPI 4: PROJECT INCOME
KPI 4: PROJECT INCOME
Customers are often confidential; we announce when
possible. Order book needs strong balance sheet
For year ending April 30th 2012
• £1.46m total inflow
• £0.48m product sales
• £0.98m grant funding
For year ending April 30th 2013
• £1.45m total inflow
• £0.09m product sales
• £1.36m grant funding
For year ending April 30th 2014
• £3.08m total inflow
• £1.13m product sales
• £1.96m project funding £0
£500,000
£1,000,000
£1,500,000
£2,000,000
£2,500,000
£3,000,000
£3,500,000
£4,000,000
2010 2011 2012 2013 2014 2015 2016 2017
Collaborative Project Funding
Applied For
Negotiation
Secured
Paid
HYDROGEN ENERGY SYSTEMS
43. KPI 5: PROJECTS UNDER CONTRACT
KPI 5: PROJECTS UNDER CONTRACT
Contract Project To be paid Project Type User
EcoIsland 360kW £760k £1.5m Grant SSE
Chino I 360kW £621k £773k Sale Hyundai
Phaedrus 120kW £536k £731k Grant Shell/Diamler
Common E 120kW £260k £279k Grant ITM
HyFive 3x 360kW £2.75m £2.75m Grant GLA
DECC 100kW £78k £325k Grant ITM
HMGS Hpac40+ £100k £100k Sale HMGS
HMGS II Hpac40+ £74k £74k Sales HMGS
Riverside 60kW+ £1,265k £1,265k Grant CoR
Other Smaller £105k Sales -
Total £6,550k
Pipeline of projects is rapidly growing
• £9.56m of projects under contract or in the final stages of negotiation
• £6.55m of projects under contract
• £3.01m of contracts in final negotiation
• Rapidly growing pipeline
HYDROGEN ENERGY SYSTEMS
44. KPI 6: HEAD COUNT | STAFF COSTS
KPI 6: HEAD COUNT | STAFF COSTS
Staff and Country Reps | £4m pa
• Headcount has only increased by <10% despite a 100% increased grant take and revenue
• £1.2m of costs (labour and overhead) funded by grants
• Increase in staff in production and field engineer teams – service delivery
£0
£50,000
£100,000
£150,000
£200,000
£250,000
£300,000
£350,000
£400,000
May13
June13
July13
Aug13
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
Staff costs per month
Reps
and BD
Staff
Costs
-
10
20
30
40
50
60
70
80
90
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
Staff Numbers per month
Reps
and BD
Staff
HYDROGEN ENERGY SYSTEMS
45. Key Financial Results for the year ended 30 April 2014:
Total Income incorporating sales revenue and projects income £3.077m (2013: £1.44m) up 114%
Sales Revenue £1.127 (2013: £0.087m) up £1.040m
Collaborative projects income £1.370m (2013: £1.35m)
Additional capitalised project income £0.58m (2013: £nil)
Increase in fixed assets to £1.755m from £1.463m, up 20%
Loss from operations £7.978m (2013: £6.518)
Cash burn £7.568m (2013: £6.1m)
Cash balance £9.763m (2013: £5.94m)
Two placings creating proceeds of £12.0m before expenses
FINAL RESULTS PRESENTATION:
FOR THE YEAR ENDING APRIL 2014
30TH JULY 2014 | TAVISTOCK | FINSBURY PAVEMENT | LONDON
46. Commercial progress to date:
A Total of £9.56m of projects under contract or in the final stages of negotiation
£6.55m of projects under contract
£3.01m of contracts in the final stages of negotiation
Strongly developing pipeline of commercial sales and funded projects
FINAL RESULTS PRESENTATION:
FOR THE YEAR ENDING APRIL 2014
30TH JULY 2014 | TAVISTOCK | FINSBURY PAVEMENT | LONDON