REG - Molecular Energies - Business Update

Molecular EnergiesAnnouncement

27/04/2023 07:00

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RNS Number : 6123X  Molecular Energies PLC  27 April 2023

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE MARKET
ABUSE REGULATION (EU NO. 596/2014) AS IT FORMS PART OF UK DOMESTIC LAW BY
VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR").

 

27 April 2023

 

MOLECULAR ENERGIES PLC

("Molecular" or the "Company")

 

BUSINESS UPDATE

 

Molecular Energies PLC (AIM: MEN), the international energy Company with both
hydrocarbon and alternative energy divisions, provides an update on its Green
House Capital alternative Energy Division.

 

Green House Capital

Green House Capital is a 75% owned subsidiary of Molecular Energies PLC
("Molecular") which acts as an incubator to promote and develop green and
new-energy related business. By way of example, Molecular has had recent
success in incubating and spinning out the London Stock Exchange (AIM) listed
company ATOME Energy PLC ("ATOME"), in which the Company retains a 25%
shareholding.

 

Dual Fuel ("DFL")

Molecular Energies PLC is firmly of the view that hydrogen fuel is the best
solution to decarbonise long-haul land transport in the global energy
transition.

 

The use of hydrogen fuel for mobility applications will not be an overnight
revolution. Near-term adoption rates of brand new hydrogen powered vehicles
(either fuel cell or hydrogen internal combustion engines) are likely to be
low. This is due to the high purchase cost for the vehicles and limited
production runs, despite fiscal incentives which are, in any event,
increasingly costly to governments and taxpayers alike.

 

Molecular is focusing on engineering a dual fuel solution, enabling the use of
both diesel and hydrogen fuels simultaneously in long haul vehicles at up to a
50% fuel blend. This will materially reduce vehicle emissions and extend
vehicle range whilst allowing vehicles to still run on diesel only for maximum
flexibility and performance. DFL aims to convert existing vehicles within a
matter of days at a low, commercially justifiable cost without requiring users
to buy brand new, expensive, hydrogen long haul vehicles with long lead times.

 

DFL is a 50:50 joint venture between Green House Capital and G-volution Ltd, a
leading UK based dual fuel technology company. DFL is undertaking engineering
work in a test cell environment, and a prototype vehicle engine has already
been identified which is one of the most common for long haul transport in
Paraguay which is where DFL will test prototypes on the road. As a sparsely
populated agriculturally based economy with surface area larger than the size
of Germany, Paraguay is reliant on road transport and barges to move all its
heavy loads, making it a prime location for DFL's first operations.

 

DFL is already in advanced discussions with its first lead customer and others
have been identified to follow in due course. The objective is to have the
prototype vehicle in trial operation at or around the end of 2023 with batch
conversions starting in 2024. The vehicles will run on hydrogen supplied by
the Mobility Division of Molecular's former subsidiary, ATOME Energy, whose
1MW mobility electrolyser is due to start producing hydrogen before the end of
the year. It is intended that users are offered an attractive package of
conversion and guaranteed fuel supply at fixed cost. The package will be
complemented by an innovative refueling method originated by Molecular of
which is more is set out below.

 

On successful trial, it is intended that DFL will be swiftly rolled out in
other countries as the engineering works already underway are aimed to satisfy
international standards.

 

HYSO

Although the current refueling of hydrogen vehicles is handled much like the
refueling of diesel and petrol vehicles, the refueling infrastructure is
costly due to the requirement of specialist equipment with long lead times.
Further, these refueling methods will inevitably lack good economics until
there is a wider availability of hydrogen vehicles which, for the above
reasons, is unlikely to be soon.

 

Green House Capital, via its 100% subsidiary, HYSO, is developing an
innovative solution which provides flexible hydrogen refueling. This seeks to
provide the optimum location and environment in which to refuel which avoids
the need for expensive fixed hydrogen infrastructure. Preliminary concept
designs have been prepared and discussions are taking place with leading
automotive engineering consultants with the objective of providing an
internationally usable solution to be trialed at or around the end of this
year, initially complimenting DFL's operations in Paraguay.

 

Whilst the intended solution is focused on DFL, the future objective is to
extend this to hydrogen only vehicles on an international basis. Further
announcements will be made in due course.

 

ATON 6 PLC

Molecular and ATOME Energy, in which the Company currently has a 25% holding,
are both involved in businesses where the generation of carbon credits is a
natural possibility for their business models.

 

The markets for origination, development and sale of carbon credits are
fast-developing, although far from mature and demand for quality assured,
responsibly sourced credits is fast expanding. ATON 6 has been created as a
100% subsidiary of Green House Capital to become a part of this increasing
area of business.

 

ATON 6's proposition is to benefit from pre-purchasing carbon credits from
within the Molecular family of companies and intends to responsibly source
quality assured voluntary carbon credits. These credits will then be held
and/or sold to third parties/retail market.

 

Extensive contacts and experience of the Molecular group of family companies
in South America places the Company in a fertile position to develop a
long-term pipeline of credits, supplemented by buying verified, readily
available carbon credits for trading. Molecular is taking steps to rapidly
commercialise ATON 6 during this year and further announcements will be made
in due course.

 

Other Projects

The Company is in various discussions regarding further projects into which
Green House Capital may invest. The focus is on businesses with strong
economic potential and a positive environmental impact. Lithium projects
within Green House Capital remains a work in progress.

 

Peter Levine, Chairman, commented: "The direction of Molecular's mobility
divisions is clear, with the intent, as a disruptor, to break the glass
ceiling of the current predominant views on hydrogen mobility and
infrastructure rollout by offering cost effective carbon reduction solutions
and a user friendly, scalable hydrogen refueling approach.

 

"We believe our focus on green and alternative energy projects will create
significant value for our public company investors whilst we consider options
for our hydrocarbon business in Argentina.

 

"We anticipate saying more on this subject at or around the announcement of
our annual results in a month or so time".

 

For further information, please visit www.molecularenergiesplc.com
(http://www.molecularenergiesplc.com) or contact:

 

 Molecular Energies PLC                      +44 (0)20 7016 7950

 Nikita Levine, Investor Relations           info@molecularenergiesplc.com (mailto:info@molecularenergiesplc.com)

 finnCap (Nominated Advisor and broker)

 Christopher Raggett, George Dollemore       +44 (0)20 7220 0500

 Tavistock (Financial PR & IR)

 Simon Hudson, Nick Elwes, Charles Baister   +44 (0)20 7920 3150

 

 

Notes to Editors

Molecular Energies PLC is an AIM listed company at the forefront of energy
development and has interests across the energy spectrum, from oil and gas
projects to subdivisions in the green and alternative energy sub-sectors.

 

The Company has oil and gas production in two geographical markets: Argentina
and the United States, as well as exploration assets in both Argentina and
Paraguay. The Company also has two separate subdivisions which are focused on
early-stage opportunities in the green and/or alternative energy sub- sector.

 

Activities in the green and alternative energy space are being carried out
under the Green House Capital brand and through AIM listed ATOME Energy PLC
operating in Paraguay and Iceland, producing green hydrogen and ammonia for
use in fuels.

 

With a strong strategic and institutional base of support, an in-country
management team as well as the Chairman whose interests as the largest
shareholder are aligned to those of its shareholders, Molecular gives UK
investors access to an energy growth story combined with world class standards
of corporate governance, environmental and social responsibility.

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018 ("UK MAR"). The person who arranged for
the release of this announcement on behalf of the Company was Peter Levine,
Chairman.

 

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