ITM Power finds itself straddling two very different political chessboards this spring. On one side, the British electrolyser manufacturer has secured a £86.5m injection from the UK government — a blend of equity and grant designed to turbocharge its Sheffield factory. On the other, the company is helping shape European Union rules that could decide which producers win future public tenders, through its membership in the newly formed “Electrolysers for Europe” coalition.
The UK deal, unveiled in recent weeks, marks a strategic shift in Whitehall’s approach. Great British Energy, the state-backed energy investor, is taking a 10.8% stake for £40m, making it ITM Power’s second-largest shareholder. A separate £46.5m grant from the Department for Energy Security and Net Zero will pour directly into expanding the company’s production hub in Sheffield. The goal: lift nameplate capacity to one gigawatt by 2028 via the next-generation Chronos platform, while creating more than 400 jobs. For chief executive Dennis Schulz, the backing positions ITM Power as the “natural partner” for British hydrogen projects.
Yet the regulatory front in Brussels may prove equally consequential. On 27 May, the Electrolysers for Europe coalition — which counts ITM Power alongside John Cockerill, Nel Hydrogen, Sunfire, Thyssenkrupp Nucera and Topsoe — published a position paper targeting the European Commission’s proposed Industrial Accelerator Act. The group wants origin rules for electrolysers to favour European manufacturers in public procurement and subsidy schemes. Specifically, the coalition demands that within a year of the Act taking effect, three out of four core components must come from EU member states, with stack origins reflecting genuine European value creation rather than final assembly.
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The paper also calls for enforceability through customs rules, protection of strategically critical components without raising generic balance-of-plant costs for European electrolyser makers, and inclusion of hydrogen technologies in foreign direct investment screening with a sector-specific threshold of €30m. A particularly sensitive point for ITM Power: the coalition insists that geographical origin requirements be limited to the EU and European Economic Area, while urging that the United Kingdom be recognised from the outset as a reliable partner. The Act itself was proposed by the European Commission on 4 March and still needs approval from the European Parliament and the Council — meaning the final shape of any rules remains fluid.
Investor attention on ITM Power stayed elevated this week. Interactive Investor listed the stock among the ten most traded names on its platform on the morning of 28 May, with buy orders accounting for 53% of all trades. Yet the price action proved volatile. By 15:50 GMT on 29 May, shares had fallen 7.65% to 193.20 pence, after swinging between 193.01p and 217.60p during the session.
The position paper does not translate into an immediate order or a change in guidance. Its relevance is indirect: the coalition is trying to shape the regulatory architecture that will govern how green hydrogen, electrolyser projects, low-carbon steel and public procurement are financed and awarded across Europe. For ITM Power, the twin political tracks — UK state backing and EU lobbying — represent parallel attempts to secure both the capital and the market access needed to scale the Chronos technology at a moment when competitors are jostling for position in a rapidly evolving global hydrogen economy.
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