UK-based electrolyser manufacturer ITM Power has secured £86.5 million in government-backed funding to support its Sheffield factory expansion project in South Yorkshire, in a move set to boost the country’s green hydrogen production capabilities. The funding package is supported by the UK government and Great British Energy, and includes a £40 million investment from the latter. This funding is also expected to enable a major expansion of the company’s manufacturing capacity to around 1GW annually, while creating more than 400 jobs. Currently, the development marks one of the largest public investments to date in UK hydrogen manufacturing landscape. It also positions Sheffield as an important node in the UK’s clean energy transition alongside other mega-developments such as the country’s first regional hydrogen transport and storage network that plans to start allocation rounds this year.

Sheffield electrolyser factory expansion at the center of UK’s hydrogen economy

Sheffield electrolyser factory expansion comes at an important moment for the UK’s hydrogen economy. This is as the government channels more effort to develop domestic manufacturing capability and reduce reliance on imported clean energy technologies.

Green hydrogen, produced using renewable electricity and electrolysis, is increasingly being seen as essential for decarbonizing heavy industries including steel, chemicals and refining. The clean fuel is also being used in enabling long-duration energy storage and supporting clean transport in aviation, shipping, and heavy-duty vehicles.

The UK has also launched multiple funding rounds (HAR1, HAR2) to support hydrogen production projects. Many of these projects including the now paused Whitelee Green Hydrogen Project rely on electrolyser technology from companies like ITM Power.

The expansion of Sheffield hydrogen electroyser factory is therefore important as a supply-side enabler. This is because it is out to ensure domestic manufacturing can meet rising project demand.

Sheffield hydrogen electrolyser factory expansion development and delivery

The Sheffield facility is already one of the largest hydrogen electrolyser manufacturing plants in the world. It is being further expanded under a new funding package from the UK government.

Key development highlights

Funding secured: £86.5 million

Public investment: £40 million from Great British Energy

Total planned investment: Up to £120 million over three years

Capacity target: 1 GW annual electrolyser production

Job creation: Over 400 roles

Additionally, the expansion builds on ITM’s existing Bessemer Park site. The site was originally developed as a gigafactory-scale facility for proton exchange membrane (PEM) electrolysers.

Technical outlook and manufacturing at Sheffield hydrogen electrolyser factory after expansion

ITM Power specializes in PEM electrolysers. This is a technology well-suited for rapid response to intermittent renewable energy and can also be integrated with wind and solar systems. PEM electrolysers are also at the center of production for most high-purity hydrogen.

The expanded Sheffield hydrogen electroyser factory in South Yorkshire will manufacture POSEIDON modules (20MW-class systems). The gigafactory will also produce modular electrolyser stacks for industrial-scale hydrogen projects.

These systems are also already being deployed in projects across UK industrial clusters, European hydrogen hubs, and Power-to-X (PtX) applications across the globe.

Who is behind Sheffield hydrogen electrolyser factory expansion in South Yorkshire

Developer and Manufacturer

• ITM Power

Investment Partners

• UK Government (Department for Energy Security and Net Zero)
• Great British Energy

Legal Advisor

• Burges Salmon

Technology and Industrial Partners

• Industrial hydrogen project developers (HAR1/HAR2 recipients)
• UK industrial clusters across steel, chemicals, refining sectors