- The UK government and its new publicly owned utility, Great British Energy, announced a combined £86.5 million funding package for ITM Power to expand its electrolyser factory in Sheffield. The package comprises £40 million in equity from Great British Energy and an in‑principle £46.5 million grant from the Department for Energy Security and Net Zero (DESNZ).
- The funds will help build a 1 GW automated manufacturing line for ITM’s next‑generation Chronos electrolyser technology, creating over 400 jobs in South Yorkshire. Chronos aims to deliver higher efficiency and lower costs than existing models.
- The investment is Great British Energy’s largest to date and part of its “Energy Engineered in the UK” strategy. Ministers say it marks the next industrial chapter for South Yorkshire, positioning it as home to Europe’s largest electrolyser factories.
ITM’s next step into industrial-scale hydrogen
In a high‑profile visit to ITM Power’s electrolyser facility in Sheffield, Energy Secretary Ed Miliband and Chancellor Rachel Reeves unveiled the government’s latest intervention to accelerate Britain’s hydrogen ambitions.
The £86.5 million package – £40 million in equity investment from Great British Energy and a £46.5 million grant from DESNZ pending subsidy approval – will finance an automated production line capable of manufacturing 1 GW of next‑generation Chronos electrolyser stacks.
Chronos is ITM’s new proton‑exchange‑membrane (PEM) electrolyser platform. According to an accompanying announcement, the design offers superior energy efficiency and substantially lower costs than the company’s current technology.
The factory expansion will help ITM reduce the levelised cost of hydrogen for industrial customers and improve the reliability of green‑hydrogen supply.
The announcement underscores Britain’s bid to become a hydrogen superpower, enhancing energy security and economic resilience while reducing dependence on volatile fossil‑fuel markets. It also ties into the government’s broader clean‑energy jobs plan, which aims to double employment in the sector to 860,000 by 2030.
Jobs and industrial revival
The investment will create over 400 skilled jobs in manufacturing and construction, making South Yorkshire a hub for hydrogen technology. Officials highlighted the region’s steel‑making heritage, stressing that a new generation of clean‑energy manufacturing jobs will enable residents to “stay in their hometowns” rather than leaving for work.
Miliband framed the investment as part of the government’s “clean energy mission!, arguing that geopolitical shocks in the Middle East highlight the urgency of building domestic energy sovereignty.
“Communities have long been calling out for a new generation of good industrial jobs, and with these plans we answer that call,” he said. Reeves said the announcement shows the government’s commitment to ensuring Sheffield, once the backbone of Britain’s industrial revolution, is now at the forefront of future industries.
Great British Energy CEO Dan McGrail called the move a realisation of his company’s “Energy Engineered in the UK” strategy, designed to keep vital engineering expertise within Britain and enable homegrown companies to compete globally.
ITM CEO Dennis Schulz characterised the support as a “pivotal step” that positions the firm at the centre of the UK’s hydrogen economy and will underpin confidence in its technology and sustained growth.
Strategic significance
The investment comes amid a surge in international hydrogen activity and growing recognition that electrolysers are a critical link in the transition to net‑zero. Without electrolysers, green hydrogen cannot be produced at scale.
The Sheffield project is expected to accelerate adoption of green hydrogen across British industry, supporting decarbonisation of hard‑to‑electrify sectors such as steelmaking, chemicals, aviation and shipping. By manufacturing advanced equipment domestically, Britain aims to avoid supply‑chain bottlenecks and capture more value from the emerging hydrogen economy.
Analysts note that Great British Energy’s backing signals a willingness to take equity stakes in strategically important clean‑energy manufacturers. Becoming a shareholder in ITM gives the state a direct interest in the company’s success and aligns public investment with industrial policy goals. The funding also raises ITM’s cash reserves and improves its fiscal outlook; the company lifted its FY26 cash guidance to £210‑£215 million, reflecting the proceeds.
Big‑picture outlook
The Sheffield announcement illustrates how government intervention can de‑risk emerging technologies and catalyse private investment.
With the UK aiming to produce up to 10 GW of low‑carbon hydrogen by 2030, domestic manufacturing capacity will be essential. The Chronos line should help make green hydrogen more cost‑competitive, encouraging uptake in heavy industry and transport and reducing reliance on imported fossil fuels.
More broadly, the project forms part of a £1 billion programme for Great British Energy to invest in UK‑based clean‑energy supply chains. By anchoring a major electrolyser factory in South Yorkshire, the government hopes to stimulate a wider hydrogen cluster in the Don Valley Corridor, creating ancillary jobs and drawing further private investment.
If the Chronos platform delivers on its efficiency promises, ITM could become a major exporter of British‑made electrolysers, strengthening the UK’s position in the global hydrogen race.
