Hydropulse to Build 150 MW Green Hydrogen Plant for European Refinery

Hydropulse, the build, own and operate arm of UK electrolyser maker ITM Power, has entered Heads of Terms with a European oil refinery for an on-site green hydrogen facility, the company announced on 12 October 2026.

Recurring Revenue Structure Takes Center Stage

The planned installation would deploy 150 MW of the company's Alpha electrolyser platform, supplying hydrogen directly at the customer's refinery over a 10-year term. The structure under discussion would see Hydropulse build, own and operate the plant, creating a long-term contracted and recurring revenue stream for its parent.

ITM Power, which is headquartered in the UK and trades on the London Stock Exchange AIM under the ticker ITM, said the customer is planned to supply the site and utilities, including power. That arrangement, according to the company, would limit Hydropulse's exposure to swings in electricity prices.

Engineering and Financing Workstreams Advance in Parallel

A joint Front End Engineering Design (FEED) study is already underway between the two parties. The companies are targeting a Final Investment Decision (FID) in 2027, with hydrogen production at the refinery expected to start in 2029 if the project proceeds.

Alongside the engineering work, ITM Power disclosed that it is engaged in constructive discussions with banks regarding project-level financing. The company intends to deploy such financing to scale Hydropulse in a capital-efficient manner.

Schulz Points to Scale of the Commitment

Dennis Schulz, Chief Executive Officer of ITM Power, characterised the signing as an important milestone for the business. He noted that the combination of 150 MW of capacity and a planned 10-year contract duration demonstrates the scale and potential of the BOO model.

Schulz went further, stating that if the arrangement progresses to definitive agreements it would constitute the company's largest commercial commitment to date and establish a material long-term contracted revenue stream for the Group. He also said the company is pleased to be working with a leading European refinery and looks forward to advancing the engineering, commercial and financial workstreams through to FID.

Heads of Terms Represents Early-Stage Position

Both parties stress that the agreement is a statement of intent rather than a binding contract. The Heads of Terms marks an early-stage commercial commitment, with the definitive agreements still to be negotiated. The joint FEED study remains in progress, the 2027 FID target stands, and production in 2029 remains the stated expectation should the investment decision be reached. Financing talks with banks continue as one of the workstreams to be resolved ahead of FID.

The Company Behind the Electrolysers

ITM Power designs and manufactures industrial-scale electrolysers for green hydrogen production. The company attributes its offering to proprietary PEM technology, vertically integrated manufacturing and in-house engineering, which it says allow it to deliver standardised, high-performance hydrogen plants. With a track record on large-scale projects, ITM Power states that it supports leading industrial and energy companies in meeting decarbonisation targets.

Beyond equipment sales, it supplies hydrogen itself through Hydropulse, its build, own and operate vehicle. The company holds the Green Economy Mark, awarded to businesses that derive more than 50% of revenues from green products and services.