Ceres and ITM Power soar after ‘Green Day’ hydrogen lift.
Hydrogen energy firms Ceres Power Holdings PLC (AIM:CWR, OTC:CPWHF) and ITM Power PLC (AIM:ITM) were boosted after the UK government hailed the fuel as key in the UK’s future energy strategy.
It said in one of its ‘Green Day’ announcements:
The government sees low-carbon hydrogen as a critical component of our broader strategy to deliver energy security.
Hydrogen power will be matched with carbon capture and storage (CCSU) technology to decarbonise industrial clusters in Teeside and the North West under the plans, with the government announcing eight projects on Thursday it will consider to carry these out, including from BP PLC (LSE:BP.).
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Incorporating hydrogen to the clusters has the potential to “kick start the hydrogen economy” it added.
Ceres and ITM, which both develop hydrogen electrolysis systems, rose 13% and 11% on the news respectively, after the government earmarked the fuel as “versatile replacement to high-carbon fuels”.
Hydrogen was also picked over biofuels for use in the clusters, making Drax Group (LSE:DRX) a key loser from the announcement, despite its previous threats of rerouting a £2bn investment into its bioenergy and carbon capture project (BECCS).
The government added it would explore expanding the rollout of hydrogen to other clusters, including on the Humber estuary in the north east.
SSE PLC (LSE:SSE), another energy generator, called on the government to clarify timescales on these plans though, adding it stood “ready to invest” in its own carbon capture in the area.
FTSE 100-listed SSE said:
There remains an opportunity to be bold on carbon capture and help make the UK the easiest place in the world to invest in low carbon technologies.
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Ceres and ITM Power soar after ‘Green Day’ hydrogen lift, March 30, 2023
