ITM POWER has announced plans to enter the US market, enticed by the vast subsidies offered under the country's Inflation Reduction Act.

The green hydrogen firm — which specialises in making electrolysers — will now pursue a speedy entry into the US, it revealed in a statement to the London Stock Exchange yesterday, in a blow to the UK's domestic energy aspirations.

It hopes the US could become one of its largest markets, and has confirmed it will start bidding for American projects following the standardisation of its technology, after managing to adapt its electrolysers to work in multiple territories.

Shares in the company rose four per cent yesterday following the announcement.

In a statement to the London Stock Exchange, the company extolled the virtues of the US market, referencing the $370bn of subsidies offered in the US

Inflation Reduction Act.

"The US is widely recognised as having the potential to become one of the largest markets for electrolysers," the company said.

ITM also noted that the country is targeting 10m metric tones of clean hydrogen per year by the end of the decade and 50m by 2050 as part of the country's National Clean Hydrogen Strategy, with $9.5bn investment for clean hydrogen already pushed through via the Infrastructure Law.

Dennis Schulz, the company's chief executive, believed this provided ITM with a "tremendous opportunity" to become a leading electrolyser provider ITM's decision to shift its focus to US markets is a blow to the UK, which has adopted its own 10GW target of hydrogen generation by 2030.

ITM Power told City A.M. it remains "committed to UK opportunities", but that the announcement recognises the scale and ambition of the US government's Inflation Reduction Act.

(c) 2023 City A.M., source Newspaper