Turquoise is pleased to announce completion of the sale of its corporate finance client and investment portfolio company GT Energy UK Limited (“GT Energy”) to IGas Energy PLC (“IGas”).
GT Energy is a developer of deep geothermal heat projects in the UK. GT Energy’s principal project is a 14MW deep geothermal project in the Etruria Valley, Stoke-on-Trent. The project is anticipated to supply zero-carbon heat to the city of Stoke-on-Trent through a council-owned district heating network, which is currently under construction. Under the current timetable it is anticipated that geothermal plant construction will commence in Q2/Q3 2021, with the plant scheduled to supply heat by March 2022.
IGas is a leading British energy company, currently producing oil and gas from over 100 sites across the country. IGas is committed to playing an important role in the UK’s energy transition and the acquisition of GT Energy represents a first step in this strategy. IGas is also seeking high-grade potential opportunities for other forms of energy, including electricity generation and storage.
Francis Wright, Managing Director at Turquoise, commented: “This transaction represents a significant step forward in the development of the low carbon heat market in the UK. Deep geothermal projects in cities such as Paris and Munich prove that this technology can deliver low- carbon heat at large scale. IGas’s understanding of geology, drilling, project management and operations will be invaluable in helping to establish this technology in the UK.
“Turquoise has been working with GT Energy since 2013 and we are delighted to see the Company embarking on the next stage in its growth with a supportive and capable new parent.”
Turquoise is a merchant bank specialising in Energy, Environment, Efficiency, covering both buy side (investment and fund management) and sell side (fundraising and M&A). In addition to its role as corporate finance adviser to GT Energy, Turquoise also acts as fund manager of the Low Carbon Innovation Fund 1 on behalf of the Low Carbon Group at the University of East Anglia and supported by the European Regional Development Fund (ERDF). Low Carbon Innovation Fund 1 is the second largest investor in GT Energy with a 17% shareholding.
Low Carbon Innovation Funds 1 and 2 (both of which are supported by ERDF) focus on investments that reduce CO2 emissions and originally supported GT Energy due to the very large emissions reductions that could potentially be achieved if deep geothermal technology is rolled out across the UK.