2026-10-14
- Hydropulse, the build, own and operate (BOO) subsidiary of electrolyser maker ITM Power, has reportedly signed Heads of Terms with a leading European refinery for a 150 MW green hydrogen project.
- The project will use ITM Power’s Alpha electrolyser platform to produce hydrogen on site at the refinery under a 10-year agreement.
- The parties are carrying out a joint front end engineering design (FEED) study, with a final investment decision (FID) targeted for 2027 and hydrogen production expected in 2029.
- The refinery’s name and country, the investment size and annual hydrogen output have not been disclosed; if it proceeds to a full contract, it would be the largest commercial commitment in the group’s history.
Hydropulse, a subsidiary of ITM Power, has reportedly signed Heads of Terms with a leading European refinery for a 150 MW green hydrogen project. Hydrocarbon Processing carried the announcement on October 13, 2026, citing ITM Power. Heads of Terms is a pre-contract agreement of key terms rather than a binding definitive contract, and that distinction should be kept in mind.
According to the announcement, Hydropulse will build, own and operate a facility that produces hydrogen on site at the refinery. The facility will use ITM Power’s Alpha electrolyser platform, and the refinery is expected to provide the site and utilities, including power. The term is 10 years, and the parties are currently conducting a joint FEED study.
The counterparties are Hydropulse, ITM Power’s BOO subsidiary, and an unnamed “leading European refinery”. Under a BOO model, the provider builds, owns and operates the asset and earns revenue from a long-term supply agreement rather than from an equipment sale. In this structure ITM Power can secure recurring revenue under a long-term contract, while the refinery can receive hydrogen without bearing the capital cost of the equipment.
The technology is ITM Power’s Alpha electrolyser platform, and the capacity is 150 MW. Hydrogen will be produced on site, according to the announcement. Because the refinery supplies the site and utilities including power, Hydropulse is described as being able to reduce its exposure to fluctuations in electricity costs. This is reported to be one of the factors that shapes the economics of a BOO project.
On financing, Hydropulse is reported to be in discussions with banks on project-level financing, with the aim of scaling Hydropulse in a capital-efficient way. Project-level financing raises funds against the cash flows of an individual project, separately from the financial position of the parent company.
ITM Power chief executive Dennis Schulz is reported to have called the agreement an important milestone for the company. He said the 150 MW scale and 10-year term demonstrate the scale and potential of the BOO model, and that if it proceeds to a formal contract it would become the group’s largest commercial commitment to date and an important source of long-term contracted revenue. He also said the company is pleased to work with a European refinery and will advance engineering, commercial and financing work toward FID.
Numbers
The principal figures reported are as follows. Electrolyser capacity is 150 MW and the term is 10 years. The joint FEED study is under way, the FID target is 2027, and hydrogen production is expected to start in 2029. This implies a period of roughly two years between FID and the start of production. If the 10-year term is counted from the 2029 production start, the operating period would extend into the late 2030s.
By contrast, annual hydrogen output in tonnes, total capital expenditure (CAPEX), the confirmed financing amount, the binding nature of the agreement and detailed terms have not been disclosed. The refinery’s name and country have also not been revealed. As a result, the figures that can be confirmed are limited to capacity (150 MW), term (10 years) and schedule (FID in 2027, production in 2029).
Timeline
- 2026-10-13 — ITM Power announced that Hydropulse had signed Heads of Terms with a European refinery for a 150 MW green hydrogen project, and Hydrocarbon Processing carried the report. The exact signing date was not stated.
- Currently — The parties are conducting a joint FEED study, and Hydropulse is reported to be in talks with banks on project-level financing.
- 2027 — Target timing for the final investment decision (FID).
- 2029 — Expected start of hydrogen production.
Note
MW (megawatt) here denotes the electrolyser’s power input capacity, and 150 MW refers to the scale of the electrolyser installation in this project. Heads of Terms is a preliminary agreement that sets out key terms ahead of a definitive contract and generally carries limited legal force.