- Energy company IGas said it had entered into a share purchase agreement to acquire GT Energy UK, a developer of deep geothermal heat projects onshore in the UK, for up to £12m.

GT Energy's principal project, a 14MW deep geothermal project in the Etruria Valley, Stoke-on-Trent, was anticipated to supply zero carbon heat to the city of Stoke-on-Trent on a long-term 'take or pay' contract with Stoke-on-Trent City Council.

The project would have tariff guarantee from Ofgem prior to construction and all the geophysical work on the project was complete and the necessary permitting in place, the company said.

Under the current timetable it was anticipated that drilling and testing could commence in Q2/Q3 2021 with the installation operational by March 2022, it added.

Under the terms of agreeement, IGas would make an initial payment of 2,222,223, worth £500K, and further earn-out provisions. The maximum payment for acquisition was £12m.

'The combination of the two businesses will create significant synergies... This will allow both the efficient execution of the Stoke-on-Trent project and the building of a significant pipeline of projects some of which could utilise IGas's existing well stock and longstanding relationships in its current operational areas.'

At 9:14am: [LON:IGAS] Igas Energy PLC share price was +0.5p at 12.65p

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