SGN Commercial Services (“SGN”) and Getech Group have signed a definitive agreement to establish a substantial green hydrogen factory on Getech Group’s former gas holding property in Inverness.
Getech, a netzero technology supplier and data-driven energy asset developer, announced that its wholly owned subsidiary, H2 Green Limited, has inked a deal with SGN to build a significant green hydrogen production, storage, and distribution plant at the Inverness site.
SGN and H2 Green signed a memorandum of agreement in January 2021 to investigate the creation of hydrogen supply centers in England and Scotland. The partners have chosen Inverness as the first asset to develop from a preliminary selection of 21 SGN locations.
The parties have agreed to a two-year (extendable to three-year) period during which SGN will remove the gas holder, H2 Green will manage the project, including comprehensive engineering design, and the parties will advance all necessary consents, permits, and licenses, according to the statement.
As they explore adding other recently identified locations to the joint review list, Getech and SGN have agreed to forward three more UK sites to an advanced level of study.
The new green hydrogen hub will be built near Inverness, with a capacity of up to 8 tonnes of hydrogen per day, according to the company.
Hydrogen provides a natural avenue for decarbonisation in the Inverness area and the Scottish Highlands, according to the Group, due to its location, climate, and geography.
The facility is located between the city’s rail terminal and industrial region, with the goal of “directly delivering green hydrogen to big volume anchor customers, such as train, bus, and heavy freight trucks.”
SGN will now remove the current gas holder from the Inverness site in preparation for development. This is expected to happen in 2Q22, according to the company. At this point, the land value has been decided upon and is valued at pre-development market cost, which can be paid in cash or project equity.
“The Inverness green hydrogen hub will be the first of its type in the local region,” said Jonathan Copus, Chief Executive Officer of Getech. “It is well positioned to facilitate the use of hydrogen for both rail and road transportation requirements.”
“These initiatives show the momentum that is growing around our hydrogen operations,” he said. H2 Green’s reputation as a rapid, analytical, and financially astute finder and valuer of hydrogen asset prospects is being cemented by our data-driven methodology.”
“Our focus on the most operationally and economically beneficial locations for our customers has also resulted in an agreement with SGN to forward the examination of three further sites throughout the UK to an advanced level, with more possible sites added for study,” he said.
“SGN is helping to define the UK’s energy future through a number of pioneering renewable energy initiatives,” said Marcus Hunt, Director Commercial Services and Investments at SGN.
“Working with H2 Green to build a green hydrogen center in Inverness is an exciting opportunity that supports the country’s net zero objective while growing the burgeoning hydrogen sector,” he said. “Transport comprises over 30% of the UK’s emissions.”
“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,” said Counsellor Trish Robertson, Chair of The Highland Council’s Economy and Infrastructure Committee.
“We expect Inverness to be a vital strategic refueling point for hydrogen trains running on lines in Scotland, and this exciting news by H2 Green will assist in expediting their introduction at the earliest opportunity,” said Tim Burleigh, Head of External Relations at Eversholt Rail.
H2 Green announced last month that it had reached an agreement with Shoreham Port to build a renewable energy center that will eliminate emissions from its truck and HGV fleet.
