(Alliance News) - IGas Energy PLC on Monday said it has signed a memorandum of understanding with SSE Heat Networks Ltd for a geothermal district heating project in Stoke-on-Trent, Staffordshire.
Shares in IGas Energy were up 92% at 36.40 pence in London on Monday.
IGas is a Lincoln-based oil and gas producer, while SSE Heat Networks is a heating infrastructure subsidiary of Perthshire, Scotland-based energy company SSE PLC.
Through the partnership, SSE will develop and deliver a district heating network in Stoke's Etruria valley. It will also grant contract exclusivity between SSE Heat and IGas's wholly owned subsidiary, GT Energy UK Ltd, for 12 months as the project is executed.
Stoke-on-Trent City Council approved planning permission in May. At the same time, IGas pledged the project will supply zero-carbon heat to Stoke for future decades.
"We are delighted to be working with SSE as we seek to deliver this flagship renewable project for the city of Stoke-on-Trent," said IGas Chief Executive Stephen Bowler.
"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."
Bowler added that a successful deep geothermal industry in the UK would create thousands of new jobs and "tens of millions of pounds" in new investments.
London-listed energy company IGas tipped in June that it continued to have positive discussions with the government regarding future financial support for other geothermal projects.
By Josie O'Brien; josieobrien@alliancenews.com
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