ITM Power's 9.3% Slide Masks a Retail Buying Frenzy as Government and Private Backing Converge
05.06.2026 - 15:44:29 | boerse-global.de
The 4th of June told two conflicting stories about ITM Power. The Sheffield-based electrolyser manufacturer saw its shares tumble 9.3% to €1.79, extending a seven-day rout of nearly 22% from the all-time high of €2.58 reached in late May. Yet beneath the surface, data from Interactive Investor showed that roughly 63% of morning orders on the UK retail platform were purchases, making ITM one of the most actively traded names on British consumer brokerages.
That disconnect reflects a broader tension between near-term market jitters and long-term structural catalysts. While the stock has more than doubled year-to-date and remains about 80% above its 200-day moving average, Friday’s drop to €1.79 represents a sharp correction off the peak. The February trough of €0.65 already seems distant, but investors are grappling with how quickly the company can turn its pipeline of projects into sustainable profitability.
A ÂŁ86.5 Million State Backing Targets the Gigawatt Factory
Much of the institutional confidence stems from a major government intervention unveiled just days earlier. Great British Energy (GBE), the state-backed energy company, acquired a 10.4% stake in ITM Power for ÂŁ40 million. That equity injection sits at the heart of a broader ÂŁ86.5 million public finance package, which includes a ÂŁ46.5 million grant from the Department for Energy Security and Net Zero.
The grant is earmarked for transforming ITM’s Sheffield plant from manual assembly into a fully automated production line. At the centre of that upgrade is the Chronos electrolyser platform, a next-generation system that promises a step-change in performance. Each Chronos unit delivers 2.5 megawatts of capacity — roughly three times the output of its predecessor — while slashing capital costs by 40% and shrinking the physical footprint by about 50%. Analysts see the government’s direct involvement as a material de-risking of the company’s long-term business model.
Should investors sell immediately? Or is it worth buying ITM Power?
Two Tracks to Profitability: Chronos and Cromarty
The automated gigawatt line intended for Chronos is designed to reach an annual capacity of 1 GW. A final investment decision on that facility will determine when the platform enters commercial production — and, critically, when ITM Power can realistically achieve positive earnings. That timetable runs in parallel with a specific project milestone in Scotland.
On the 3rd of June, ITM Power and Protium Green Solutions formalised a strategic partnership to develop, finance and operate industrial green hydrogen plants across the UK. The first concrete asset is the Cromarty Hydrogen Project in the Scottish Highlands, which Protium recently acquired. Cromarty already holds government support from the first UK hydrogen allocation round (HAR1) and is designed for 15 MW of electrolyser capacity, producing around seven tonnes of green hydrogen daily. Target customers are industrial operators in the region not connected to the national gas grid. Phase 1 is expected to create roughly 30 local jobs.
Flexible Models and a December Deadline
Under the alliance, Protium will handle project development — power procurement, permitting, infrastructure and offtake. For later projects, the pair are exploring multiple structures, including ITM’s build-own-operate subsidiary Hydropulse or direct purchases of ITM electrolysers by Protium. The final investment decision for Cromarty is scheduled for December 2026, a date that will test whether the partnership can deliver on its promise of reliability, affordability and scalability — three attributes that Protium CEO Christopher Jackson describes as the market’s core demands.
ITM Power at a turning point? This analysis reveals what investors need to know now.
ITM chief Dennis Schulz frames the tie-up as a combination of complementary strengths spanning plant engineering and project finance, aiming for competitively priced hydrogen underpinned by solid long-term economics. The same week, the company’s REFHYNE-II project — a 100 MW PEM electrolyser plant for Shell in Germany — won an award at the World Hydrogen Awards 2026, further cementing ITM’s credentials in large-scale industrial hydrogen.
The Waiting Game for a Catalyst
For now, the stock’s trajectory hinges on two interrelated decisions: the green light for the automated gigawatt line and the positive FID on Cromarty. Should both go through, the 22% correction from the all-time high could prove to be a brief and sharp detour on a longer upward path. But until those milestones are reached, the gap between retail enthusiasm and market caution — as reflected in that 63% buy order ratio — is likely to persist.
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ITM Power Stock: New Analysis - 5 June
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