REG - Molecular Energies ATOME Energy PLC - Duel Fuel Joint Venture

AtomeAnnouncement

05/01/2023 07:00

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RNS Number : 7139L  Molecular Energies PLC  05 January 2023

5 January 2023

 

Molecular Energies PLC

("MEN" or the "Company")

 

Green House Capital

Dual Fuel Joint Venture with G-volution

 

Molecular Energies PLC (AIM: MEN), the international energy company announces
the formation of Dual Fuel Limited a new joint venture for its Green House
Capital division.

 

Highlights

·      Dual Fuel Limited ("DFL") has been incorporated to provide an
engineering to implementation solution for the conversion of commercial diesel
engines to run on a diesel and hydrogen mix

·      DFL is a joint venture between the Green House Capital division
of MEN and G-volution, an leading UK dual fuel technology business

·     DFL's objective is to provide engineering solutions using
G-volution's contribution to the JV of its proprietary technology to quickly
and cost effectively convert existing commercial road and off-road vehicles as
well as barge transport to run on a mix of diesel and green hydrogen

·      DFL aims to have its first prototype converted dual fuel vehicles
running in the field by end 2023

·    The initial lead market will be Paraguay due to the favourable
strategic and commercial environment and importantly the availability of green
hydrogen fuel for mobility from ATOME Energy PLC, a company in which MEN is
one of the largest shareholders

·    The objective, after proof of concept, is to roll out conversion
solutions to end users within the Mercosur trading bloc and worldwide married
to availability of hydrogen from third party producers

·   DFL intends to provide a solution to commercial users who recognise the
need to demonstrate their commitment to reduce emissions without having to
replace existing vehicle fleets or barges thereby obviating the time-consuming
requirement to expend significant monies for new commercial hydrogen fuel cell
("FCEVs") or battery electric vehicles ("BEVs") with hydrogen range extenders

 

Peter Levine, Chairman, commented: "Hydrogen for heavy commercial transport is
an essential component in the decarbonisation of heavy transport where current
electric vehicles are not appropriate for heavy loads and distances. The cost
of electricity can be high and charging points are at a premium for long
distance travel outside of urban and built-up environments. Moreover, the
roll-out of hydrogen for heavy commercial transport users is being impacted
not only due to the availability of green hydrogen but also by the high cost
of either hydrogen direct powered vehicles or hybrid electro-hydrogen
alternatives.

 

"Dual Fuel aims to provide a quick and cost-effective solution to users across
the spectrum who want to make a meaningful contribution to reduction of
emissions now whilst at the same time keeping their existing vehicles on the
road with the flexibility that dual fuel use will provide.

 

"In parallel, in the event that Dual Fuel successfully achieves its
objectives, this will prove to be positive and complementary to ATOME Energy
in its mission of expanding the market and offering for its mobility
division."

 

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

 

 Molecular Energies PLC                      +44 (0) 207 016 7950

 Nikita Levine, Investor Relations           info@molecularenergiesplc.com
 finnCap (Nominated Advisor and broker)      +44 (0) 207 220 0500

 Christopher Raggett, George Dollemore
 Tavistock (Financial PR and IR)             +44 (0) 20 7920 3150

 Simon Hudson, Nick Elwes, Charles Baister
 G-volution Ltd                              +44 (0) 117 9596470

 Chris Smith, CEO                            chris.smith@g-volution.com

 

Background

DFL, a UK registered joint venture company has been formed in equal shares by
the Green House Capital division of MEN and G-volution, a leading UK dual fuel
technology business. Based in the UK but with the intention to operate
internationally, the purpose of DFL is to create, provide and implement
engineering solutions to convert existing diesel engines to run on a mix of
diesel and green hydrogen for a range of HGV, on and off-road industrial and
agricultural vehicles as well as barges.

 

Currently, the number of active FCEVs or BEVs in heavy goods long range
transportation is constrained by their associated costs and practicality
making them commercially unattractive to non-governmental, non-sponsored,
non-local authority users without material grants and subsidies which are
increasingly more complex to obtain due to the prevailing financial climate.

 

Other issues that surround the commercial attractiveness of such vehicles
(FCEVS and BEVs) thereby impeding progress towards reduction of emissions
include:

·      The long lead times for such vehicles to both be developed and be
available to the market

·      Supply chain delays and bottlenecks

·    The availability of hydrogen refuelling stations (HRS) and charging
points for BEVs, specifically outside of urban areas

·      The limited driving range of BEV HGVs and long charging times,
increasing haulage costs

·      The restricted capability of battery associated vehicles to carry
very heavy loads over long distances

·      The sourcing and recycling of lithium and rare earth minerals
used in battery associated vehicles

·      The limitation of available electricity power sources in coping
with increased demand for mobility

 

The DFL integrated solution

The solution of retrofitting vehicles to run on both diesel and hydrogen in
unison aims to benefit the end user in the following ways:

·    A quick and cost-effective retrofit using established technology in
an innovative and practical way and benefitting from proprietary technology

·      Meaningful reduction in CO(2) emissions whilst at the same time
not increasing nitric oxide emission levels

·    Transport that can still be used solely on diesel as well as dual
fuel thereby giving flexibility in driving conditions

·      Fast refuelling times

·      Dual fuel technology enhances standard vehicle range allowing for
long-distance travel

·      Safe and energy efficient

·      Early projections suggest that dual fuel can help to
significantly reduce fuel costs and total cost of ownership

·      Potential generation of carbon credits

 

DFL's challenge is to have operational dual fuel vehicles by the end of 2023.
The initial test bed will be Paraguay, a unique geography where all goods are
carried by road or barge across a country larger in size of Germany and with
the third largest barge fleet in the world. It is also a location of
operations of ATOME Energy, the London Stock Exchange pure green hydrogen and
ammonia production company, and who will provide green hydrogen through its
Mobility Division scheduled to commence business during 2023. MEN will
mobilise in-country engineering expertise to facilitate prototype mechanical
engineering and conversion.

 

DFL in conjunction with ATOME will therefore provide users with an integrated
package of dual fuel technology married to the availability of green hydrogen
fuel, allowing customers to demonstrate important and immediate material
emission reductions whilst maintaining the use of their existing fleet of
vehicles.

 

The objective of DFL's work will be to provide dual fuel conversion to
vehicles within a 72-hour period utilising trained in-country mechanics. Once
proven, the solution will then be rolled out into other countries both within
Latin America and worldwide, with ATOME through its Mobility Division where
possible and practical providing or procuring the necessary hydrogen supply,
as appropriate, to join the dots and provide a one-stop-shop solution.

 

In parallel with the work to provide the solutions, the generation and sales
of carbon credits will be researched and, if possible, will provide a valuable
part of DFL's armoury as will be the active decarbonisation support from
international and multi-lateral organisations and like facilities.

 

Initially, in like manner as to how ATOME Energy PLC was incubated within MEN
before being spun out of the Group as an independent public company, funding
for DFL will be provided by way of intercompany loan by the MEN Group out of
its own resources.

 

Other opportunities for Green House Capital

The lithium potential project of Green House remains under consideration but
as stated when originally announced, this is a long-term opportunity.

 

In the meantime, Green House is actively pursuing other alternative energy
opportunities such as the one announced today.

 

An update on MEN's hydrocarbons business which continues to be operationally
profitable will be provided on 9 January 2023.

 

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.

 

 

About Molecular Energies

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. The Company remains a significant
shareholder in the independent AIM listed green hydrogen and ammonia
production company ATOME Energy PLC which it spun out of the Group in December
2021.

 

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.

 

About G-volution Ltd

Established in 2008, G-volution Ltd is a British SME specialising in
decarbonising heavy transport and power generation by deployment of its
patented dual fuel technology for the Road, Rail, Marine and Power Generation
sectors around the world.

 

More details on G-volution can be found at www.g-volution.co.uk
(http://www.g-volution.co.uk)

 

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