Scottish and Southern Energy plc (SSE.L) has agreed to invest up to £15 million in cash for a 20% stake in Geothermal International Ltd. The investment will be made on a phased basis over the next six months.
Geothermal International Ltd (GI) is the UK’s leading supplier of ground source heating and cooling systems. It is primarily active in the commercial building sector. Since becoming established in 2000, it has installed over 1,300 ground source heat pump systems, amounting to over 90MW of installed capacity, sized from 6kW to 10MW, according to a release.
Ground source heat pump systems can be used to transfer energy between buildings and the surface crust of the planet, or surrounding air, providing a renewable energy efficient means of heating and cooling buildings. T.
Ian Marchant, Chief Executive of SSE said, "SSE is rapidly building a strong portfolio of clean energy businesses that cover almost every part of the renewable and alternative energy market in the UK. Geothermal energy has been an obvious missing piece in this portfolio and this deal fills the gap very effectively."
He added, "This is likely to become the largest direct investment made by our ventures team and represents the ninth deal since the team was created a year ago."
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