UK-listed IGas has entered a deal with US player BayoTech aiming to further expand its energy transition strategy.

New Mexico-headquartered BayoTech is a hydrogen generation technology company offering hydrogen production solutions through rentals, leases, sales and gas-as-a-service to customers worldwide.

Under their partnership, BayoTech will help to produce hydrogen from certain of IGas' existing gas resources.

IGas said it has initially identified two of its existing sites in south-east England where the gas resource can be reformed into hydrogen that will then be sold to local or national customers.

IGas chief executive Steve Bowler said: “Preliminary engineering work has confirmed that gas at these sites is suitable for BayoTech's innovative, modular system.

“We look forward to working with BayoTech to be well placed in the growing hydrogen economy which will add value to our existing gas resource through the delivery of cost -effective hydrogen,” Bowler said.

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BayoTech chief executive Mo Vargas said: “IGas' leadership is a great example of where locally produced resources can be used in the energy transition to significantly reduce the carbon intensity associated with long distance transportation of hydrogen, support local jobs and provide the UK with low cost hydrogen to accelerate the new economy."

Gas — mostly known for working to develop shale gas projects onshore in the UK — has started adding renewable technologies to its focus area this year.

Last month, it signed a deal to acquire UK player GT Energy, a developer of deep-geothermal projects.