LONDON (ShareCast) - (Sharecast News) - Energy asset technology company Getech announced on Tuesday that its wholly-owned subsidiary H2 Green has signed a binding agreement with SGN Commercial Services to develop a major green hydrogen production, storage and distribution facility on SIGNs former gas holder site in Inverness.
The AIM-traded firm said that additionally, it has agreed with SGN to progress three further UK sites to an advanced stage of evaluation, and was discussing the addition of several recently-identified sites to the joint review list.

It said the new green hydrogen hub would be developed in Inverness, with a capacity expected to scale to eight tonnes of hydrogen per day.

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

The site was 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.

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

Ownership of the site would be transferred from SGN to an operating company owned by H2 Green, and created to progress the Inverness development.

Land value had been agreed, priced at pre-development market cost and payable in cash or project equity, and H2 Green had granted SGN an option to enable its scalable equity participation in the project.

SGN would now prepare the site for development, including the removal of the existing gas holder, planned for the second quarter of 2022.

In January, 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 had selected Inverness as the first asset to progress to development.

The companies were now moving into a two-year period, extendable to three years, during which SGN would remove the gas holder, H2 Green would lead the project including detailed engineering design, and the parties would advance the relevant consents, permits and licences.

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

"The Inverness green hydrogen hub will be the first of its 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, adds a second high-quality and strategically important development hub to our portfolio."

Copus said the projects demonstrated the momentum that was building around Getech's 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."

At 1528 GMT, shares in Getech were up 2.35% at 33.26p.

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