IGas Preferred Contractor for Geothermal Scheme

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

12 June 2023

IGas Energy plc (AIM: IGAS)

("IGas" or "the Company")

IGas Selected as Preferred Contractor for Salisbury NHS Trust Geothermal Scheme

IGas is pleased to announce that its geothermal business, GT Energy, has been selected by Salisbury NHS Foundation Trust (the Trust) as preferred contractor through the Carbon and Energy Fund (CEF) Framework to deliver a geothermal heat solution for the Salisbury District Hospital NHS Trust. 

The next phase is the creation of an Innovation Partnership between GT Energy, the Trust and the CEF for the parties to work together through the project development phases to deliver a geothermal heat plant for supply of renewable heat to the hospital on a long-term basis. 

GT Energy will de-risk and develop the geothermal project from initial geological feasibility, through consenting, to construction of the wells and energy centre.  It is expected that heat supply will begin in early 2026 subject to normal planning, regulatory permitting and procurement cycles.  It is envisaged that GT Energy will own and operate the facility. 

The plant is proposed to fulfil the full heat requirements of the hospital (currently >20GWh_th/annum) on a long-term energy supply agreement.  The project anticipates making future applications to the Public Sector Decarbonisation Scheme (PSDS) to assist in the funding of the project, although progression is not conditional on a grant from the PSDS.

Commenting Ross Glover, Chief Operating Officer, IGas said:

"This is an important step forward for GT Energy.  The NHS 2040 net zero target places it at the forefront of decarbonising healthcare, making it the world's first national health system to commit to become 'carbon net zero', backed by clear deliverables and milestones.  GT Energy along with the Trust and the CEF look forward to realising this project which will position Salisbury NHS Foundation Trust at the forefront of the NHS's ambition."

Commenting Brian Johnson, Director of Estates Salisbury NHS Trust added:

"This is an incredibly exciting development for the Trust in our journey toward net carbon zero. Eliminating our reliance upon fossil fuels with an on-site geothermal source will be both renewable and give us strong resilience from external (off-site) energy infrastructure and the associated inflationary pressures.  We are proud to be working with GT Energy and trailblazing geothermal energy opportunities within the NHS and look forward to the development of this infrastructure upgrade over the coming months."

About the Carbon and Energy Fund

The Carbon and Energy Fund (CEF) has been specifically created to fund, facilitate and project manage complex energy infrastructure upgrades for the NHS and wider Public Sector.

With a proven track record of more than 60 projects and in-depth experience of procurement, engineering, legal and finance, the CEF is the organisation to successfully guides Public Sector clients through the complex processes involved.

For further information please contact:

IGas Energy plc                                                                                 Tel: +44 (0)20 7993 9899

Ann-Marie Wilkinson, Chief Communications Officer

Investec Bank plc (NOMAD and Joint Corporate Broker) Tel: +44 (0)20 7597 5970

Virginia Bull/Chris Sim

Canaccord Genuity (Joint Corporate Broker)                             Tel: +44 (0)20 7523 8000

Henry Fitzgerald-O'Connor/James Asensio

Vigo Consulting                                                                                 Tel: +44 (0)20 7390 0230

Patrick d'Ancona/Finlay Thomson/Kendall Hill