The two companies will jointly explore the potential for energy storage by the production of hydrogen using ITM Power’s rapid response electrolysis equipment.

Under the agreement, a plant will also be built to test the performance and operation.

ITM Power managing director Phil Doran sought to highlight the company’s first foray into the German utility market.

"There are many significant opportunities in Germany including energy storage using hydrogen gas injection into the gas grid and clean fuel provision for captive fleets and road vehicles," said Doran.

ITM Power CEO Dr Graham Cooley said, "As a fully integrated energy company, this utility has a deep understanding of the need for energy storage and maximizing the use of renewable power and is perfectly placed to demonstrate the benefits of hydrogen gas grid injection."

According to ITM, the integration of renewable energy into the existing electricity and gas networks is a continuing challenge to utility providers in the country and company expects to unearth some answers through the partnership.