Getech Group (GTC ) has now signed a binding agreement with SGN Commercial Services (“SGN”) to develop a major green hydrogen facility on its former gas holder site in Inverness.
Getech, a netzero technology provider and data-led energy asset developer, said its wholly owned subsidiary, H2 Green Limited, has signed the agreement with SGN to develop the major green hydrogen production, storage and distribution facility at the site in Inverness.
In January 2021, SGN and H2 Green signed 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 develop.
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 licences, it noted.
Getech has also agreed with SGN to progress three further UK sites to an advanced stage of evaluation as they discuss adding several, recently identified sites to the joint review list.
The Company explained to investors that the new green hydrogen hub is to be developed in Inverness with a capacity which is expected to scale to 8 tonnes of hydrogen per day.
Due to Inverness’s location, climate and topography, hydrogen presents a natural path for decarbonisation in the Inverness area and the Scottish Highlands, the Group highlighted.
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.’
SGN will now prepare the Inverness site for development by removing the existing gas holder. The Company said this is planned to occur in 2Q22. Land value has also been agreed at this point and priced at pre-development market cost that is payable in cash or project equity.
Commenting on today’s news, Jonathan Copus, Chief Executive Officer of Getech stated:
“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.”
He commented, “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,” he said.
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.”
He added that, “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.”
Also commenting on the Inverness development, Chair of The Highland Council’s Economy and Infrastructure Committee, Counsellor, Trish Robertson said: “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: “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.”
Last month, H2 Green announced that it had signed a deal with Shoreham Port to develop a renewable energy hub that would remove emissions from its fleet of trucks and HGVs.
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