SSE signs MoU for Stoke on Trent geothermal heat network, promises November update on group strategy

SSE has signed a Memorandum of Understanding with IGas subsidiary GT Energy UK Limited for the development of a geothermal district heating project in Stoke-on-Trent.
SSE will develop and deliver a district heating network in Stoke-on-Trent working with GTE and Stoke-on-Trent City Council. The MoU grants exclusivity to each of SSE and GTE with regard to the Project for a period of 12 months with certain milestones including executing a heat offtake agreement in relation to GTE’s future geothermal plant, which was granted planning permission earlier this year..
Giles Newton, Head of Business Development for SSE Energy Solutions, said: “We are delighted to announce our partnership with GT Energy which will help us to fully explore the feasibility of providing heat offtake from their future geothermal project in the Stoke area. We have proven expertise in the sector, with our 19 existing UK heat network sites, and we believe that geothermally sourced energy will play a vital role in decarbonising heat, as well as having the potential to tackle ‘hard to decarbonise’ process heat. We look forward to developing the Stoke City project with GT Energy over the next 12 months”.
Stephen Bowler, IGas chief executive, noted that the company was “ working closely with other energy providers on a number of district heat networks in other cities”.

SSE says “no decision to split businesses”
Meanwhile SSE has responded to market speculation about whether it will split its renewables and networks businesses, saying “There has been no decision to break up the SSE Group. The Board remains fully focused on strategic choices which will drive shareholder value from the wealth of net zero opportunities the Company is creating.”
The company promised an update in November on plans to accelerate growth, “including details of significantly increased capital investment for the period to 2026, sources of funding and the company’s vision for further growth into the 2030s.” That would include ambitions for installed renewable and flexible capacity, as well as networks RAV projections.
The company said it had a clear strategic focus is on renewables and regulated electricity networks, supported by carefully chosen businesses and the businesses have “exciting growth potential.”
Alistair Phillips-Davies, Chief Executive of SSE, said: “We have been making excellent progress with our clear net zero-aligned strategy, centred on electricity networks, renewables and other carefully chosen businesses that help provide the low-carbon electricity infrastructure that government and wider society requires. SSE is the UK’s national low-carbon energy champion, delivering for both our shareholders and society and we look forward to updating investors on our plans to accelerate growth and create value in due course.”

Further reading
Stoke on Trent geothermal district heat project moves forward with planning approval granted

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