Orcadian Energy (AIM:ORCA) has terminated the non-exclusive joint development agreement it signed on 2 September with an American developer of offshore data centre infrastructure.
The two companies agreed to end the arrangement after a month of engagement showed that the development scope and timeline for the Earlham gas field did not align with the partner's near-term deployment priorities. The exclusivity option attached to the September agreement was never exercised, no exclusivity fee was agreed or paid, and no amounts are payable by either side as a result of the termination.
Orcadian retains all of its rights in licence P2680, which remains wholly owned by the company.
The September agreement had opened a 90-day window to negotiate a definitive transaction covering Orcadian's Earlham and Orwell fields, with the American partner positioned as a potential buyer of power from the proposed Earlham Gigagrid scheme, an offshore power station paired with carbon capture and a co-located data centre designed to run disconnected from the UK grid.
Orcadian said the work carried out during the engagement advanced its understanding of the Earlham Gigagrid concept, which remains at an early stage subject to further concept selection and validation work, and that it continues to engage with a number of other potential partners on the project.
"This particular agreement has not progressed, but the work we did together has materially advanced our understanding of what an offshore compute development at Earlham would require," said Steve Brown, Orcadian's chief executive.
"Our view of the opportunity is undiminished, and we continue to engage with a number of other potential partners."
The company said it will provide further updates in due course.