IGas Energy subsidiary wins contract with Salisbury NHS trust

12th Jun 2023 12:42

(Sharecast News) - IGas Energy announced on Monday that its geothermal subsidiary GT Energy has secured a significant contract with the Salisbury NHS Foundation Trust to provide a geothermal heat solution for Salisbury District Hospital.

The AIM-traded firm said the agreement was made through the Carbon and Energy Fund (CEF) framework, with GT Energy selected as the preferred contractor for the project.

It said the next step would involves the establishment of an Innovation Partnership between GT Energy, the NHS Trust, and the CEF.

The partnership would facilitate collaboration among the parties during the project's development phases, ultimately leading to the creation of a geothermal heat plant that will supply renewable heat to the hospital on a long-term basis.

GT Energy would oversee the derisking and development of the geothermal project, starting from the initial geological feasibility assessments and continuing through the consenting process, well construction, and the establishment of the energy centre.

If everything progressed as expected, heat supply to the hospital was expected to begin in early 2026, although that timeline remained subject to the usual planning, regulatory permitting, and procurement cycles.

GT Energy was expected to be the owner and operator of the facility.

The proposed geothermal plant aimed to fulfil the hospital's entire heat requirements, which currently amounted to more than gigawatt-hours of thermal energy annually.

To fund the project, GT Energy was planning to seek support from the Public Sector Decarbonisation Scheme (PSDS) in the form of grant applications.

However, the project's progression would not be dependent on receiving a grant from the PSDS, the IGas board confirmed.

"This is an important step forward for GT Energy," said chief operating officer Ross Glover.

"The NHS 2040 net zero target places it at the forefront of decarbonising healthcare, making it the world's first national health system to commit to become 'carbon net zero', backed by clear deliverables and milestones.

"GT Energy along with the Trust and the CEF look forward to realising this project which will position Salisbury NHS Foundation Trust at the forefront of the NHS's ambition."

At 1442 BST, shares in IGas Energy were down 4.54% at 15.03p.

Reporting by Josh White for Sharecast.com.