Department for Transport ULEV Strategy

RNS Number : 2296N

ITM Power PLC

04 September 2013

4 September 2013

ITM Power plc

("ITM Power" or the "Company")

Department for Transport Announces £500m of Support for Ultra Low Emission Vehicles

ITM Power Plc (AIM: ITM), the energy storage and clean fuel company, notes the publication today of the government's strategy document "Driving the future today - a strategy for ultra low emission vehicles in the UK". The announcement accompanying the publication included the following:

New ultra low emission vehicles strategy launched to help grow the UK economy

Transport Minister Norman Baker today (4 September 2013) launched the government's strategy to drive forward the ultra low emission vehicles (ULEVs) industry.

The new strategy signals a major change in the way vehicles will be powered in the future and reaffirms the government's commitment to provide new opportunities for the motor industry to help grow the UK economy.

The minister launched "Driving the future today - a strategy for ultra low emission vehicles in the UK" (https://www.gov.uk/government/publications/driving-the-future-today-a-strategy-for-ultra-low-emission-vehicles-in-the-uk) during his visit to the annual low carbon vehicle exhibition in Bedfordshire.

Norman Baker said: "These are exciting times for the motoring industry as ultra low emission vehicles are the future for road travel. Our vision is that by 2050 almost every car and van will be an ultra low emission vehicle with the UK at the forefront of their design, development and manufacture. This strategy moves us up a gear in pursuing that vision.

"As well as huge opportunities for the automotive sector, this will bring life-changing benefits to our towns and cities improving air quality and reducing carbon emissions and it will provide energy security by reducing our reliance on foreign oil imports.

"We recently announced in our Action for roads paper (https://www.gov.uk/government/publications/action-for-roads-a-network-for-the-21st-century) over £500 million of new capital investment between 2015 and 2020 to continue to support the development and adoption of ULEVs in the UK. We look forward to working with industry on how best to use this money to make the government's vision a reality as quickly as possible."

The Office for Low Emission Vehicles (OLEV) (https://www.gov.uk/government/organisations/office-for-low-emission-vehicles) is inviting industry to have a say through a call for evidence on how best to invest £500 million of funding to drive the revolution and establish the UK as a premier market for ultra low emission vehicles (ULEVs). The call for evidence will be launched shortly.

The following is taken from the Summary document, also published today*

Preparing for hydrogen fuel cell electric vehicles in the UK

The Government has consistently supported the development of hydrogen fuel cell vehicles alongside the roll-out of plug-in vehicles as part of its technologically neutral approach. Both technologies are likely to have an important role to play in our future mobility.

That is why we are actively working with companies in the ground-breaking UKH2Mobility project to develop a business case for the roll-out of hydrogen fuel cell electric vehicles (and the associated hydrogen refuelling

infrastructure) in the UK from 2015.

In addition, there are five workstreams listed in the document as commitments. In Workstream 2, it is stated:

Subject to further work in Phase 2 of UKH2Mobility, we will explore the options for Government grant funding to support industry's investments in the initial network of around 65 hydrogen refuelling stations estimated to be required to support the introduction of hydrogen fuel cell electric vehicles in the UK - by May 2014.

We will work with industry to identify and resolve outstanding practical issues around the refuelling and use of hydrogen FCEVs, including the hydrogen quality assurance process, integration of hydrogen refuelling into conventional fuel retail forecourts and ensuring an optimal consumer experience - by December 2014.

In Workstream 5, it says:

We will work with industry to identify mechanisms to ensure that as the uptake of hydrogen FCEVs grows, they can increasingly be fuelled by 'green' hydrogen - ongoing.

* Available at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/236811/ultra-low-emission-vehicle-strategy-summary.pdf

ITM Power Non-Executive Chairman and former Chairman of Ford Of Britain Ltd, Prof. Roger Putnam CBE, commented: "I am delighted to see this announcement. In my 40 years in the automotive industry, this is by far the largest government commitment to low emission vehicles I have ever seen. This a significant shot in the arm for low carbon vehicle deployment in the UK, including the roll out of hydrogen fuel cell vehicles and the hydrogen infrastructure that will begin to be deployed in the next 18 months."

For further information please visit www.itm-power.comor contact:

ITM Power plc

Graham Cooley, CEO

0114 244 5111

Zeus Capital

Tim Metcalfe (Nominated Adviser)

John Goold (Corporate Broking)

020 7533 7727

Tavistock Communications

Simon Hudson / James Collins

020 7920 3150 or 07966 477256

About ITM Power

ITM Power plc was admitted to the AIM market of the London Stock Exchange in 2004 and raised its initial funding of £10m gross in its IPO. Further funding rounds of £28.5m in 2006, £5.4m in 2012 have been completed, together with a £2m Placing announced in August 2013. The Company has now made the transition from a research and development company to a product manufacturer and technology provider. The Company has both a strong base of intellectual property and engineering expertise for providing complete hydrogen solutions. The Company has been successful in developing strategic industry partnerships in the following projects:

· EU grant award for energy storage in the built environment

http://www.itm-power.com/news-item/eu-grant-award-for-energy-storage-in-the-built-environment/

· Participation in the Mediterranean Power-to-Gas platform

http://www.itm-power.com/news-item/participation-in-the-mediterranean-power-to-gas-platform/

· Contract for Operation of Hydrogen Facility

http://www.itm-power.com/news-item/contract-for-operation-of-hydrogen-facility/

· Participation in Swiss H2Mobility

http://www.itm-power.com/news-item/participation-in-swiss-h2mobility/

· Hydrogen Cost Structure Update

http://www.itm-power.com/news-item/hydrogen-cost-structure-update/

· Participation in French Hydrogen Infrastructure Programme

http://www.itm-power.com/news-item/participation-in-french-hydrogen-infrastructure-programme/