ITM Power PLC signed a capacity reservation agreement on Monday with Shell Deutschland GmbH for the latter’s Rhineland facility.

The AIM-listed group manufactures electolysers which uses proton exchange membrane technology to produce green hydrogen, the only net zero energy gas, using renewable electricity and water.

Under the terms of the deal, Shell has secured future production capacity for manufacturing of ITM’s electrolyser stacks for use at its Refhyne 2 project in Rhineland, Germany. Set to be manufactured between 2025 and 2026, the stacks will allow the plant to produce 15,000 tonnes of green hydrogen per year.

The project, which remains subject to a pending final investment decision, will involve the initial setting up of a 10 megawatt electrolyser, before later scaling to 100 megawatts.

Chief Executive Officer Dennis Schulz said: ‘Today’s announcement is yet another validation of our technology and credibility to deliver at scale, providing reassuring recognition by a world-leading industrial customer.’

ITM’s share price was up 1.6% at 56.70 pence each in London on Monday morning.

By Hugh Cameron, Alliance News reporter