(Alliance News) - Scirocco Energy PLC on Thursday said it has identified three key areas of investment as it executes its strategy focused on sustainability, part of which includes a new addition to the board as the company brings in more experience in environmental & social governance.
Scirocco shares surged 25% at 1.19 pence each in London on Thursday morning.
Scirocco is an investment company that targets production and development opportunities within the European energy market.
Scirocco said it has made progress on its strategy to create long-term sustainable value with the identification of various near-term investment opportunities within the low-carbon space, including renewable energy, circular economy and energy storage & transfer.
In particular, Scirocco has identified three core areas of investment: assets which generate energy for sale as gas, biogas or power; assets which recover a valuable component of an industrial, municipal or agricultural waste stream for re-use, generally reducing system carbon footprint; and assets involved in the storage, transmission or delivery of energy within a low carbon context.
Chair Alastair Ferguson said: "Both the energy and capital markets have changed considerably since this board set its original strategy around European Energy almost two years ago. The combination of an abundance of compelling opportunities and wider investor appetite in the low-carbon space with an improved risk-reward ratio has resulted in us increasingly focusing our business development in this area. We are presently screening a pipeline of opportunities around which we believe we can grow the business and deliver sustainable shareholder value underpinned by steady cash flow, reliable dividends, and a positive environmental & social governance story. Scirocco is wholly supportive of energy transition and it is our ambition to be a part of that long-term movement."
As part of this ESG strategy, Scirocco has appointed Muir Miller as an independent non-executive director with immediate effect. Most recently, Miller was managing director of low-carbon energy development company Peel Energy.
Scirocco also noted Wednesday that investee Helium One Group Ltd has commenced its seismic campaign at its Rukwa project in Tanzania.
Rukwa is a helium project located in south western Tanzania with the company holding 15 prospecting licences, covering an area of approximately 3,590 kilometres.
Rukwa hosts a best-estimated unrisked prospective recoverable helium resource of 138 billion cubic feet of gas, the largest known primary helium resource in the world, according to Helium One's website.
The process, which may take up to a month to complete, will clear vegetation for the laying of seismic geophone nodes as well as providing access for vibriosis-trucks and support vehicles during data acquisition. This permits the Helium to move forward with its plans for drilling at Rukwa, which will follow processing and interpretation of data from the seismic campaign.
Helium One Chief Executive David Minchin said: "Our work programme on the ground In Tanzania is timely and coincides with a significant growth in the Helium pricing as demand grows in critical areas."
Helium One shares were up 0.3% at 7.77 pence each in London on Thursday morning.
Scirocco holds a 4.6% stake in Helium One.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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