The ITM Power plc (LON: ITM) share price rose 5.84% after announcing its official entry into the United States market. The company noted that it would pursue an asset-light business model to quickly gain a presence in the country. The firm intends to start bidding on US-based projects.
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The Clean Hydrogen company intends to sell the same stack, the heart of any ITM electrolyser, into ASME and CE territories. The company is looking to build on some of its existing relationships with industry leaders based in North America. The firm recently announced some of these collaborations.
The United States is poised to emerge as one of the most significant markets for electrolysers, driven by a combination of factors and ambitious policy initiatives. With the passage of the $370 billion Inflation Reduction Act (IRA) and the unveiling of the U.S. National Clean Hydrogen Strategy and Roadmap in June 2023, the nation has set its sights on a dynamic and sustainable hydrogen future.
The U.S. National Clean Hydrogen Strategy and Roadmap, a pivotal document in the nation's energy landscape, envisions a cleaner and more sustainable future and lays out a clear trajectory for hydrogen production.
According to the strategy, the United States aims to domestically produce 10 million metric tonnes (MMT) of clean hydrogen annually by 2030, a figure that rises to 20 MMT annually by 2040 and an impressive 50 MMT annually by 2050. These targets are bolstered by a substantial investment of $9.5 billion earmarked for clean hydrogen in the Infrastructure Law.
To comprehend the magnitude of the U.S. opportunity in domestic clean hydrogen production, it's essential to consider the broader global context. The International Energy Agency (IEA) reports that the global consumption of grey hydrogen is approximately 95 MMT per annum.
The United States' commitment to clean hydrogen, backed by substantial financial support and a comprehensive roadmap, is a testament to its ambition to become a global hydrogen leader.
Dennis Schulz, ITM Power’s CEO, said: “The US has the potential to become one of the largest markets for green hydrogen. The region's green hydrogen journey has just started, which provides ITM with a tremendous opportunity to become a leading electrolyser provider as the market develops over the coming years.”
ITM Power share price.
The ITM Power share price rose 5.84% to trade at 73.55p, from Friday’s closing price of 69.49p.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.