Edinburgh-based H2 Green is being acquired in a phased £1 million cash-and-shares deal following a fundraising by its new owner, AIM-listed Getech.

The deal follows a £6m placing by Getech, which is headquartered in Leeds and provides technology for the management of energy assets and natural resources. Set up last year, H2 Green is focused on building large-scale hydrogen storage facilities as part of the UK’s transition to net zero.

H2 Green’s owners, chief executive Luke Johnson and chief operating officer Ian Spencer, will receive an initial £250,000 made up of £53,750 in cash and the remainder in Getech shares. Further payments will be triggered upon reaching various milestone targets.

In January, Getech, H2 Green and gas network operator SGN agreed exclusive strategic partnerships with the aim of creating green hydrogen hubs across SGN’s extensive land portfolio in Scotland and the south of England. An initial focus list of 30 potential locations has been agreed.

Getech provides data, knowledge and software products to the conventional energy industry, and is increasing its focus on the renewables sector. Its shares were placed at a price of 22p apiece.