Shares of UK gas company IOG (LON: IOG) are trading lower on Friday despite announcing a collaboration agreement with GeoNetZero CDT and Heriot-Watt University's Centre for Doctoral Training.
The agreement will see IOG support research into carbon capture and storage (CCS) and other renewable opportunities in the location of its asset portfolio and the broader Bacton catchment area in the UK Southern North Sea.
Drawing on an extensive gas industry archive of seismic, well and core data, the key focus will be on proving which fields and aquifers across the Bacton catchment area are the most suitable carbon sinks.
“Extending the economic life of the SNS basin in a sustainable way is likely to involve long-term integration of the established gas industry with wind, hydrogen and CCS solutions,” stated IOG.
The company believes a successful blue hydrogen-CCS cluster in the Bacton area will require a consistent gas supply, IOG's core business. It will also need steam reformation facilities and secure offshore carbon storage sites, all in reasonable proximity.
Andrew Hockey, CEO of IOG, commented: “We are very pleased to support GeoNetZero CDT's valuable research into carbon storage across our operating area. This collaboration demonstrates our support for the UK's Net Zero commitment, the new OGA Strategy and the recently announced North Sea Transition Deal.
“IOG is committed to Bacton and its catchment area, where we have established a long-term strategic position to underpin our growth into a safe and sustainable UK gas producer. The area benefits from substantial remaining gas resources, extensive transportation and processing infrastructure and proximity to major markets.”
IOG's share price is trading 1.56% lower on Friday, at 22.1p.
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