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Getech Group's (LON: GTC) share price spiked on Wednesday morning after the company announced that its subsidiary in the hydrogen production sector, H2 Green, has entered into a non-binding strategic agreement with Element Two Limited to supply green hydrogen to their refuelling stations.
Getech's share price jumped to highs of 29.4p after the open. They are now at 26.30p, up 11.88% from Tuesday's close.
Element Two is a UK-based developer of Hydrogen Refuelling Stations and a retailer of hydrogen fuel. They are investing in locations in the North of England, Scotland, and Ireland and plan to deploy over 800 pumps by 2027 and 2000 by 2030.
Getech's subsidiary, H2 Green, develops regional hydrogen hubs and works with land asset owners in the UK to assess their suitability to become city hydrogen hubs.
The aim of the deal is to accelerate the creation of the UK's first hydrogen network.
The companies have agreed on mutual options to co-locate their respective hydrogen refuelling stations and hydrogen production and storage assets.
There is a 12-month negotiation framework where they will negotiate a joint asset development road map, build an initial demonstration project, and conclude a binding long-term co-development and off-take contract.
Jonathan Copus, CEO of Getech, commented: “H2 Green and Element 2 are united by a common vision that places the customer at the heart of the hydrogen commercial transport market.
“To align our production and distribution strategies, the groups plan to combine H2Green's position in hydrogen generation and storage and Getech's state of the art location analytics, with significant data gathered by Element 2 on fuel customer habits.
“This data-led approach will enable both groups to high-grade and expand their land asset portfolios and we are already discussing the location of a demonstration project that will be a testbed for a programme of national collaboration.”
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