Are ITM planning to team with Linde / Air Products ?
The “CHIP” reference first surfaced in the article below
When JH was interviewed by Rue Swabey
September 10, 2008
Heres a thought
The Heathcote Swabey Interview
ITM Power Is Testing Home Refuelling Electrolyser Units And Hopes To Begin Shipments To Partners Soon
By Rue Swabey
Extract
“ITM Power is also developing a small electrolyser which it calls “the chip”. This 1-3kW system has the potential to generate hydrogen on-site for industrial processes. Jim Heathcote, ITM Power’s chief executive, points out that the development is customer-led, and underscores the potential to generate cash flow for the company while more complex applications are being developed and commercialised. If ITM Power is able to move into the delivered bottled hydrogen market, which is worth US$2 billion annually, it would provide much comfort to shareholders and take some pressure of the share price. However in the short-term the market will be waiting for the results of the electrolyser tests.”
So
If you had developed a low cost electrolyser that was capable of scooping the entire bottled hydrogen market
…….who would you prefer as a distribution partner and licencee ?
Would it be
Some co who already supply the bottled hydrogen market with electrolysers like Power Power, Hydrogenics, or Proton Energy?
Or
Some co who supply the same market with another product and see the ITM electrolyser as a potential money spinning new product ?
Or
Some co who currently supply bottled hydrogen to the bottled hydrogen market but are now fearful that their market will disappear
Like Linde or Air Products?
Or
Would ITM start a new business entirely in order to sell electrolyzers into the bottled hydrogen market themselves ?
Well
Any licencing relationship with a co currently making and supplying electrolyzers to the bottled hydrogen market couldn’t be viewed as simply a commercial deal
Inevitably it would be viewed as the first step in the licencee abandoning their uneconomic and technically inferior electrolyser in favour of becoming a full blooded partner of ITM with all the implications this has for the rest of the electrolyser and fuel cell markets
So
A deal with an existing electrolyser supplier to the bottled hydrogen market is unlikely
Likewise
While there are attractions for ITM in linking up with a co supplying non hydrogen products to the bottled hydrogen markets this would mean choosing different partners for the laboratory, power generation, telecommunication masts and stand by power markets
It’s a safe and possible strategy but it would also be messy
So I reckon ITM are considering either a direct selling approach or a deal with one of the major bottled hydrogen suppliers like Linde who acquired BOC (and their link with ITM) or possibly Air Products
Given that ITM must first prove their technology via a field trial they would get more bang for their buck if they conducted this trial with a major bottled hydrogen supplier This would be a strategy satisfying the needs of both parties
The licencee would be able to control the transition from cylinders to on site hydrogen generation
ITM would be able to control the rate at which electrolysers would be manufactured at Sheffield and eventually migrated to a manufacturing licencee
