Binding agreement with SGN

RNS Number : 5105V

GETECH Group plc

14 December 2021

 

14 December 2021

Getech Group plc

("Getech" or the "Company")

Getech agrees binding agreement with SGN to develop Inverness green hydrogen hub

Further sites identified for detailed joint evaluation

Getech, the NetZero technology provider and data-led energy asset developer, is pleased to announce that its wholly owned subsidiary, H2 Green Limited ("H2 Green"), has signed a legally binding agreement with SGN Commercial Services ("SGN") to develop a major green hydrogen production, storage and distribution facility on SGN's former gas holder site in Inverness.

In addition, Getech has agreed with SGN to progress three further UK sites to an advanced stage of evaluation and the parties are discussing the addition of several, recently identified sites to the joint review list.

Highlights:

· New green hydrogen hub to be developed in Inverness, with a capacity which is expected to scale to 8 tonnes of hydrogen per day.

o  Due to Inverness's location, climate and topography, hydrogen presents a natural path for decarbonisation in the Inverness area and the Scottish Highlands.

o  The site is situated between the city's rail depot and industrial area, providing green hydrogen directly to large volume anchor customers, including rail, bus and heavy goods vehicles.

o  Local customers for by-products of hydrogen generation, such as zero-carbon heat and medical-grade oxygen, include hospitals, aquiculture and water treatment works.

· Ownership of the site to be transferred from SGN to an operating company owned by H2 Green and created to progress the Inverness Development Site.

· Land value has been agreed, priced at pre-development market cost, payable in cash or project equity.

· H2 Green has granted SGN an option to enable its scalable equity participation in the project.

· SGN to now prepare Inverness site for development including removal of the existing gas holder, planned to occur in Q2 2022.

In January 2021, SGN and H2 Green announced a Memorandum of Understanding to explore the establishment of hydrogen supply hubs across England and Scotland. From an initial review list of 21 SGN sites, the parties have selected Inverness as the first asset to progress to development.

The parties now move into a two-year period (extendable to three years) during which SGN will remove the gas holder, H2 Green will lead the project including detailed engineering design, and the parties will advance the relevant consents, permits and licenses.

Jonathan Copus, CEO of Getech plc said:

"I am delighted by today's news, which will see Getech leading another critical hydrogen hub development, this time with SGN Commercial Services.

"The Inverness green hydrogen hub will be the first of it's kind in the local area and is ideally positioned to support the use of hydrogen for both rail and road transportation requirements.

"Today's announcement, in combination with our first hydrogen hub project at the Port of Shoreham, announced in November 2021, adds a second high-quality and strategically important development hub to our portfolio. These projects demonstrate the momentum that is building around our hydrogen operations. Our data-led approach is cementing H2 Green's reputation as a fast, insightful, and commercially astute locator and valuer of hydrogen asset opportunities.

"Our focus on the most operationally and economically advantageous locations for our customers, has also led to the agreement to progress evaluation of three further sites across the UK to an advanced stage with SGN, with more potential sites added for review.

"This is an exciting time for Getech as we look ahead to further hydrogen hub development opportunities being identified - in tandem with further progression on our geothermal energy, strategic minerals and carbon capture businesses."

Marcus Hunt, Director Commercial Services and Investments at SGN said:

"SGN is helping to shape the UK's energy future through a range of pioneering clean energy projects. Transport represents almost 30% of the UK's emissions so working with H2 Green to create a green hydrogen hub in Inverness is an exciting opportunity which supports the country's net zero ambition whilst boosting the developing hydrogen economy."

Chair of The Highland Council's Economy and Infrastructure Committee, Councillor Trish Robertson welcomed the announcement. She said:

"The Council is delighted that H2Green have recognised the importance of the Highland in the development of Green Hydrogen in Scotland. This development will see Inverness become one of the first cities in the UK to establish commercial production of green hydrogen. The economic and decarbonisation potential of this energy source is enormous, and we're looking forward to Highland and H2Green playing a leading role in the transition to zero carbon fuel sources."

Tim Burleigh, Head of External Relations at Eversholt Rail said:   "Eversholt Rail is delighted that this key milestone has been achieved.  We expect Inverness to be a key strategic refuelling location for hydrogen trains operating on routes in Scotland and this exciting announcement by H2 Green will assist in facilitating their introduction at the earliest opportunity.  Our ongoing programme of work with H2 Green will identify further refuelling locations over the coming months."

Last month, H2 Green signed a deal with Shoreham Port to develop a renewable energy hub that will remove emissions from its fleet of trucks and HGVs and be a catalyst for the wider region's transport decarbonisation.

For further information, please contact:

Getech Group plc Jonathan Copus, Chief Executive	Tel:  [phone]
H2 Green Ltd  Luke Johnson, Chief Executive
Cenkos Securities plc Neil McDonald / Pete Lynch / Pearl Kellie (Corporate Finance) Michael Johnson / Julian Morse (Sales)	Tel:  [phone]
Camarco James Crothers / Toby Strong	Tel: [phone]

This announcement contains inside information

Notes to editors:

Getech (AIM: GTC) helps countries and companies to manage their natural resources and energy infrastructure to assist in the delivery of a successful energy transition to a net-zero economy. We use our extensive geoscience, geotechnical and geospatial technology, and skills to locate sustainable energy resources, de-risk and optimise their development and long-term economic production. Our focus is on scalable projects that can deliver meaningful impact across industries including oil and gas, mining of battery metals, geothermal, green & blue hydrogen, and smart cities.

H2 Green is a developer and operator of green hydrogen hub infrastructure. Its mission is to develop a national network of hydrogen production, storage, and retail facilities, providing customers with a secure supply of low-cost green hydrogen. H2 Green's data-led location analytics allows it to optimise the positioning of hubs and minimise capital costs by repurposing legacy infrastructure for a greener future.

H2 Green is a wholly owned subsidiary of the Getech Group.

For further information, please visit www.getech.com , www.h2green.co.uk

 SGN Commercial Services is part of the SGN group, who own and operate the gas distribution networks in the south of England, across Scotland and in the west of Northern Ireland. The Group provides a wide-range of specialist and gas-related professional services, operating throughout the UK. SGN's safety-first culture provides bespoke commercial services and green gas solutions to the Group's clients, allowing them to better meet their business needs today and in the future.

For further information, please visit: www.sgncommercialservices.co.uk

 

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