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ITM Power's fast response opens up grid opportunities

Last updated: 03:31 24 Dec 2015 AEDT, First published: 18:31 23 Dec 2015 AEDT

ITM Power's fast response opens up grid opportunities
Inside an ITM electrolyser unit

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ITM Power (LON:ITM) has demonstrated its technology’s fast response times, which are fast enough to meet the requirements for it to be eligible for use with power grids.

The group’s power-to-gas systems demonstrated a full system "turn on" response of 40 cycles (800 milliseconds), and a "turn off" in 7 cycles (140 milliseconds).

ITM told investors that the sub-second response means the system could be used for frequency response services that are more demanding than existing primary grid balancing payment structures (such systems currently require less than 2 seconds, and even faster speeds command higher availability payments).

Responsive grid balancing can allow more renewable energy facilities to be integrated onto electricity networks, it explains.

When there’s excess generation the power-to-gas electrolysers can increase their load, with additional gas gathered for storage, while when demand for power is high the load on electrolysers would decrease.

The response times demonstrated by ITM create the opportunity for the group to generate additional revenues via grid balancing services worldwide.

"Demand response is becoming increasingly important across Europe and the USA as the percentage of renewable power increases and the percentage of thermal power decreases,” said chief executive Graham Cooley.

“Commercial tenders from power companies are demanding fast response times including sub-second enhanced frequency response.

“Revenues from grid balancing payments serve to reduce the cost of hydrogen production via electrolysis. 

“Faster response times will receive larger payments and set ITM Power apart from other electrolyser technologies."

Shares rose around 3.3% to 23.25p on Wednesday.

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