ITM’s new plant-building subsidiary brings industrial gas playbook to green hydrogen

ITM Power has launched a German-based subsidiary that will build, own, and operate green hydrogen plants based on the OEM’s electrolysis technology, following a similar business model that has served industrial gas majors for decades.

Hydropulse GmbH will focus on supplying industrial customers with “dependable hydrogen needs” in areas like chemicals, steel, food processing, refineries, and mobility, through long-term offtake agreements.

H2 View understands small- to mid-sized projects will be initial target for the company, where it will validate commercial, technical, and operational aspects.

ITM claims the subsidiary will offer “green hydrogen as a service” without capex, technology risk or operational burden for the offtaker.

Initially, the new business will focus on Germany, the UK, and the Nordics.

A statement released by ITM said that Hydropulse-built plants will be configured around a customer’s demand profile and operated through a “remote operations centre.”

The subsidiary will not be responsible for power procurement or price indexation to reduce its market exposure, leaving power risk with the customer or a separate PPA structure.

And by having “direct access” to ITM’s electrolysers at “highly competitive costs,” ITM believes Hydropulse will be able to produce green hydrogen at “an exceptionally low price point” and “unlock many projects that struggled to reach final investment decision.”

“Hydropulse is not pursuing merchant hydrogen markets, logistics, or speculative refuelling infrastructure,” the statement read. “Our focused approach ensures risk is contained and returns are tied to real industrial use cases with dependable demand.”

The business model resembles the industrial gas playbook, which sees plants built for customers that have signed long-term take-or-pay contracts, eliminating a vast amount of the risk associated with project development.

ITM CEO, and now Hydropulse Managing Director, Dennis Schulz, said the subsidiary opened a “new chapter” for the electrolyser maker.

“By addressing the bankability hurdle of green hydrogen projects through capex, operations, and technology risk mitigation for the end user, Hydropulse will solve the most pressing real-world challenges that are holding back exponential industry growth.”