Shares in IGas rose more than a third this morning on an announcement that the company had signed a memorandum of understanding with SSE Heath Networks on the development of a geothermal district heating project in Stoke-on-Trent.
But Union Jack Oil saw its shares fall more than 15% at the start of trading. This could be a reaction to the company’s statement late last week about a possible equity fundraising to help fund the purchase of a further 25% interest in the Claymore Piper Complex Royalty Units.
Union Jack said on Friday evening:
“There is no certainty that the potential fundraising will proceed. A further announcement will be made in due course.”
The IGas announcement comes just over a year after it bought the geothermal business GT Energy UK Limited, which had already developed plans for a deep renewable heat scheme in Stoke. Planning permission was granted in June 2021.
Last week, IGas announced an agreement with CeraPhi Energy to develop other geothermal projects using existing oil and gas wells.
Stephen Bowler, the IGas chief executive, said today:
“We are delighted to be working with SSE as we seek to deliver this flagship renewable project for the city of Stoke-on-Trent. SSE is leading the way in developing the low-carbon assets and infrastructure required for the UK to reach its target of net zero emissions by 2050.
“We are also working closely with other energy providers on a number of district heat networks in other cities.
“Deep geothermal has the potential to become a world leading industry here in the UK, provide a stable transition away from oil and gas, and help meet the Government’s net zero ambitions by decarbonising heat on a mass scale. It would also create 1,000s of new jobs and generate tens of millions of pounds in new investment.”
- At the time of writing (9.24am), shares in IGas were up 30.58% at 24.81p. Union Jack was down 15.60% at 22.16p.