REG - Powerhouse Enrgy Grp - Acquisition of the entire shareholding of Protos

Powerhouse EnergyAnnouncement

02/05/2023 07:00

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RNS Number : 9664X  Powerhouse Energy Group PLC  02 May 2023

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ANNOUNCEMENT.

 

2 May 2023

Powerhouse Energy Group Plc

 (the "Company" or "PHE")

 

Acquisition by PHE of the entire shareholding of Protos Plastics to Hydrogen
No 1 Ltd

 

Powerhouse Energy Group Plc (AIM: PHE), a company pioneering integrated
technology that converts non-recyclable waste into low carbon energy, is
pleased to announce that it has assumed full ownership and control of the
Protos plastics to hydrogen project at the Protos site near Chester in the UK
(the "Site").

 

This has been brought about by PHE completing the acquisition of the entire
shareholding in Protos Plastics to Hydrogen No 1 Ltd from Peel NRE Ltd
("Peel") for a nominal payment of £1. Protos Plastics to Hydrogen No 1 Ltd is
the Special Purpose Vehicle ("SPV") established for the development of the
plastics to hydrogen project at the Site utilising PHE's technology.

 

The acquisition brings to an end previous discussion regarding PHE taking a
50% shareholding in the SPV.

 

PHE has agreed a variation of the IP Licence Agreement signed on 30 June 2021
with Peel. The variation confines the beneficiary of the licence to the SPV.
The Peel option to extend its exclusivity in respect of its deployment of
PHE's technology will terminate.

 

The Loan Facility Agreement between PHE and the SPV will be extended for one
year and as a result of the acquisition will now be an intragroup arrangement.

 

The Option Agreement (the "Option") between Peel and the SPV enabling the SPV
to lease the Site will remain in place and will be amended to limit any annual
rent reviews to between 2% and 5%, such reviews in the previous version of the
lease being uncapped. The Option has also been extended to 28 March 2024, with
the ability to extend for a further year on payment of an extension fee of
£150,000. A fee of £400,000 for provision of the gas easement and £532,000
for the power export facility will be payable by PHE to Peel on entering into
the lease.

 

The Subscription and Warrant Agreement dated 9 September 2020 made between
(1) Peel Holdings (IOM) Limited ("Peel") and (2) Powerhouse Energy Group
Plc expired on 29 April 2023.

 

Up until its financial reporting year ended 31 March 2022 the SPV was dormant.
Financial results for 2022/23 will be reported in due course.

 

 

Keith Riley, Acting Chief Executive Officer of PHE, commented:

 

"Having spent some time considering the best option for the Protos project, we
have agreed with Peel that PHE will assume full control of the project and its
further development. In this respect we have already started working with
Petrofac and are reviewing the engineering of the project with the view to
optimising costs and performance. The next step will be to seek commercial
agreements for the offtakes, whether this be electricity, heat, hydrogen or
other products, prior to seeking to raise finance for the construction.

 

"This is a significant and exciting development for PHE as the Company will
now be solely responsible for the development of the project at Protos. We
wish to thank the Peel team for their work to date putting the planning
permission and basic infrastructure in place and look forward to continuing
our excellent working relationship with them as landlord of the site.

 

"We look forward to providing further updates on Protos in due course."

 

 

 

For more information, contact:

 

 Powerhouse Energy Group plc                       powerhouse@tavistock.co.uk (mailto:powerhouse@tavistock.co.uk)

 Keith Riley

 WH Ireland Limited (Nominated Adviser)            +44 (0) 207 220 1666

 James Joyce

 James Bavister

 Enzo Aliaj

 Turner Pope Investments (TPI) Ltd (Joint 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

 Heather Armstrong

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

 

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.

 

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

 

For more information see www.powerhouseenergy.co.uk
(http://www.powerhouseenergy.co.uk)

 

 

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