Investment in electrolysis will support the UK’s pathway to a net zero energy system and the creation of a world-leading hydrogen technology and knowledge centre. The hydrogen sector is nascent but ready for leading companies to quickly expand and develop their technology for commercial applications.
To meet the growing demand for renewable hydrogen and electrolysis, ITM Power moved into a new, state-of-the-art, electrolyser production facility at Bessemer Park in Sheffield, UK, in January 2021. Through this strategic move to a much larger manufacturing facility (134,000 square feet), electrolyser output capacity was increased up to 1GWe (1,000MWe ) per annum, based on being ready to commence manufacture of the next generation GEP from the end of 2022.
ITM Power’s new Gigafactory in Bessemer Park, Sheffield
This move represents a step change in the capacity of the electrolyser manufacturing business. The factory should facilitate cost reductions of nearly 40%, over a 3-year period, delivered through increased automation, product standardisation, economies of scale and increased minimum levels of stock held to reduce lead times and maximise throughput.
ITM Power’s Gigafactory ramp up in electrolyser manufacturing capacity out to 2025 with and without funding for the Gigastack project
The expansion of ITM Power’s production facilities and the opportunity to demonstrate the benefits of a large-scale deployment will have wider benefits than just decarbonisation. Job creation and value creation in the expanding lower carbon economy are just some of these benefits. The deployment of electrolyser equipment and associated balance of plant will create demand for jobs immediately in supply chains and the construction centre whilst also ensuring that operational jobs are both created and protected at the production and end use case sites.
In a macro-economic impact assessment carried out by Element Energy, it was found that the initial 100MW in Gigastack is projected to create an additional 180 jobs, whilst an expansion to 1GW by 2030 could contribute up to £2.5bn Gross Value Added and 1,700 created and safeguarded jobs in Immingham’s local economy.