ITM Power up 3% as Hydropulse signs green hydrogen deal with ABO Energy

Investing.com — Shares of Sheffield-based ITM Power (LON:ITM) rose more than 3% on Tuesday after the company announced that its Hydropulse unit has formed a strategic partnership with renewable energy developer ABO Energy.

This partnership combines ABO Energy's connections with industrial buyers, international development capabilities and pre-developed hydrogen projects with the expertise to build and operate modular, container-type hydrogen production facilities using Hydropulse's ITM's electrolyzer technology.

Under the agreement, the two companies will focus on developing decentralized hydrogen production units at or near customer sites.

RBC Capital Markets analysts said in a note: “We continue to see upside potential for Hydropulse, given the potential to accelerate ITM's path to profitability with limited cash outflows,” RBC Capital Markets analysts said in a note.

The scope of the projects includes obtaining permits, electricity supply, engineering, construction and operation.

Hydropulse will establish, own and operate the facilities. ABO Energy will provide development support and power supply.

According to the statement, this arrangement allows industrial customers to provide hydrogen supply without initially investing capital.

The collaboration will be located in Europe and will initially focus on Spain and Finland, where low energy prices support green hydrogen production. The companies added that several initial projects with identified customer demand are already ready.

Dennis Schulz, CEO of ITM Power, said in a statement: “This is about market traction. With ABO Energy's access to sites and end users, we can execute projects faster and turn our technology into recurring revenue.”

Karsten Schlageter, Managing Director of ABO Energy, noted that the agreement allows the company to deliver projects faster.

Schlageter said: “Most of our projects have been developed to a stage where we can move quickly when a commitment to purchase is made. With Hydropulse, we can now offer our customers long-term reliable plant operation with a strong technology partner.”

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