REG - Powerhouse Energy Gp - Update on Longford Project JV

Powerhouse EnergyAnnouncement

11/03/2024 07:00

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RNS Number : 2436G  Powerhouse Energy Group PLC  11 March 2024

11 March 2024

 

Powerhouse Energy Group plc

("Powerhouse", "PHE" or the "Company")

 

Update on Longford Project JV

Signing of Joint Venture with Hydrogen Utopia International Plc for the
development of a non-recyclable Waste Plastic to Hydrogen facility in the
Republic of Ireland (the "Longford Project")

Powerhouse Energy Group Plc (AIM: PHE), a company pioneering integrated
technology which converts non-recyclable waste into low carbon energy, refers
to its announcement of 30 October 2023. That announcement advised that the
Company had decided to defer further progress towards committing to the
Longford Project whilst it took stock of the final position in its
negotiations with Hydrogen Utopia International Plc (LON: HUI) ("HUI") for the
proposed joint development of a non-recyclable plastic waste-to-hydrogen
facility site at Longford, County Longford in the Republic of Ireland.

 

Powerhouse is now pleased to report the following developments:

 

(1)  Powerhouse and its subsidiary, Powerhouse Energy International Limited
("PHE International") have entered into a subscription and shareholder
agreement (the "Subscription and Shareholder Agreement") with HUI and its
Irish subsidiaries, Alister Future Technologies Limited ("AFT") and Eranova
Longford Limited ("Eranova") in connection with the building of a waste
plastic to hydrogen plant on a greenfield site at Fisherstown Energy Park in
County Longford, Ireland; and

 

(2)  AFT, PHE International, HUI and Mashup PLC (previously  called
Fisherstown Property Holdings Limited) ("FPHL") have agreed to amend and
restate the option agreement dated 10 March 2023 entered into between Eranova
and FPHL, pursuant to which FPHL (as freeholder of the land on which the
Longford Project would be developed) granted an option to Eranova to lease the
site for 25 years ("the Option For Lease"). Up to €150,000 is payable by
Eranova to FPHL under the Option For Lease, with the timing for payment
dependent on the date on which planning permission for the Longford Project is
obtained.

 

Under the amended terms of the Subscription and Shareholder Agreement, AFT and
PHE International will now each own 50% of Eranova and development costs will
be contributed to on a 50:50 basis. Eranova will be the developer of the
Longford Project, and each party will have the right to appoint up to two
members to the board of Eranova.

 

Initial financing is being provided by AFT and PHE International by way of
shareholder loans (for a maximum of €200,000 each) under separate loan
agreements. Any future financing will be raised in accordance with the
Subscription and Shareholder Agreement through further loans or (with the
consent of the shareholders only) subscription for shares.

 

Signing of the Subscription and Shareholder Agreement requires PHE to make an
immediate payment of £100,000 to HUI. This is in addition to the £100,000
already paid to HUI, as noted in the Company's announcement on 21 March 2023.
A further payment of £100,000 in cash will also be made to HUI once planning
permission has been granted for the Longford Project.

 

Under the terms agreed between the parties, FPHL has also been granted an
option to acquire shares in Eranova (the "FPHL Shares Option"). Under the
terms of the FPHL Shares Option, FPHL may, within 10 days of anticipated
financial closure of the Longford Project or anticipated commencement of
construction of the Longford Project, exercise an option for the transfer or
subscription by it of new shares in Eranova. On exercise of the FPHL Shares
Option, this would result in FPHL becoming the holder of non-voting shares
amounting to 5% of the issued share capital of Eranova. The exercise of the
FPHL Option would result in an equal dilution of the shareholdings of AFT and
PHE International.

 

Longford, a county in the Irish Midlands, is anticipated to be one of the
prime beneficiaries of the EU Just Transition Fund in Ireland. On 29 November
2022, Irish Government approval was given for Ireland's Territorial Just
Transition Plan and its associated programme for the period to 2027, which
will provide €169 million of funding in the Irish Midlands; the Irish
Government plan was adopted by the European Commission on 15 December 2022.

 

The Company sees this project as an opportunity to progress a project within a
European Union Just Transition Fund area, which brings with it the potential
of grant funding for the development. The next phase will be the developing
the application for planning and permitting on the site and overall management
of the project, which will be carried out by the JV company, Eranova.

 

Powerhouse looks forward to working closely with HUI to deliver this project
successfully, fostering innovation and creating a positive impact on the
global hydrogen landscape. Further updates will be provided as and when
appropriate, with the immediate focus now being on securing planning
permission.

 

 

Paul Emmitt, Chief Executive Officer of Powerhouse, commented:

"PHE has always been committed to this JV and after working with Aleksandra
Binkowska and the HUI team, I am pleased that mutually agreeable terms have
now been reached. I look forward to getting the Longford development moving
alongside our other projects."

 

Aleksandra Binkowska, CEO of HUI, commented:

"Maintaining a strong allegiance with PHE has been a cornerstone for HUI, and
I am thrilled about finalising the Irish joint venture agreement. Both HUI and
PHE are dedicated to establishing what we believe will be one of the first
plastic waste to hydrogen facilities We look forward to working with the
Powerhouse team to deliver this exciting project. "

 

 

This announcement contains inside information for the purposes of the UK
version of the market abuse regulation (EU No. 596/2014) as it forms part of
United Kingdom domestic law by virtue of the European Union (Withdrawal) Act
2018, as amended.

 

 For more information, please visit www.phegroup.com (http://www.phegroup.com)
 or contact:

 Powerhouse Energy Group plc                                +44 (0) 203 368 6399

 Paul Emmitt

 Strand Hanson Limited (Nominated & Financial Adviser)      +44 (0) 207 409 3494

 Ritchie Balmer / James Harris / Rob Patrick

 Turner Pope Investments (TPI) Ltd (Broker)                 +44 (0) 203 657 0050

 Andrew Thacker / James Pope

 Tavistock (Financial PR)                                   powerhouse@tavistock.co.uk (mailto:powerhouse@tavistock.co.uk)

 Simon Hudson / Nick Elwes / Saskia Sizen

 

 

About Powerhouse Energy Group plc

Powerhouse Energy has developed a process technology which can utilise waste
plastic, end-of-life-tyres, and other waste streams to convert them
efficiently and economically into syngas from which valuable products such as
chemical precursors, hydrogen, electricity, heat and other industrial products
may be derived. The process produces low levels of safe residues and requires
a small operating footprint, making it suitable for deployment at enterprise
and community level.

 

Powerhouse Energy Group also incorporates Engsolve Ltd, which offers
Engineering Services across all sectors with speciality services in the
development of new technologies and clean energy.

 

Powerhouse Energy is quoted on the London Stock Exchange's AIM Market under
the ticker: PHE and is incorporated in England and Wales.

 

About Hydrogen Utopia International plc

HUI aims to become one of the leading new European companies specialising in
turning non-recyclable mixed waste plastic into hydrogen and other carbon-free
fuels, new materials or distributed renewable heat.

 

A HUI facility uses non-recyclable mixed waste plastic as feedstock and turns
it into syngas from which new products and energy can be produced. HUI
anticipates that its revenues will be derived from a variety of sources,
dependent upon location and configuration of the HUI facilities, including the
sale of syngas, hydrogen and other gases, electricity and heat sales, and the
payment to it of fees for a given quantity of non-recyclable mixed waste
plastic received at a HUI facility.

 

 

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