REG - Powerhouse Enrgy Grp - Joint Venture with HUI Plc

Powerhouse EnergyAnnouncement

21/03/2023 07:00

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RNS Number : 5758T  Powerhouse Energy Group PLC  21 March 2023

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ANNOUNCEMENT.

 

21(st) March 2023

 

Powerhouse Energy Group Plc

 (the "Company" or "PHE")

 

Heads of Terms for a Joint Venture with Hydrogen Utopia International Plc for
a non-recyclable

Waste Plastic to Hydrogen facility in the Republic of Ireland

 

Powerhouse Energy Group Plc (AIM: PHE), a company pioneering integrated
technology which converts non-recyclable waste into low carbon energy, is
pleased to announce that it has agreed Heads of Terms ("HoTs") 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 (the "Longford Project"). Under
the HoTs, PHE and HUI have agreed to use a joint venture vehicle, incorporated
in Ireland, with equal shareholding by each party and development costs being
contributed to on a 50:50 basis.

 

PHE has agreed to pay HUI a non-returnable payment of up to £400,000 in cash
in recognition of HUI's contribution to identifying the Longford Project,
securing the option to lease and progressing the project. This cash payment
comprises an initial payment of £100,000 on signing the HoTs and a further
payment of £100,000 upon finalisation of the project documentation between
HUI and PHE - principally comprising a development agreement and a shareholder
agreement. PHE has agreed to make a further payment of £200,000 in cash to
HUI once planning permission has been granted for the Longford Project on the
Longford Site.

 

The Longford Project will be located at Fisherstown Energy Park, which has its
own electrical grid connection, an electrical substation and the potential to
utilise existing wastewater treatment facilities on site. The site has good
road access and is within easy reach of the M4 and M6 motorways, which provide
access to Dublin and Galway. HUI's wholly owned Irish subsidiary has secured
an option to acquire a 25 year lease on an area within Fishertown Energy Park.
The option period is three years during which the parties will seek to obtain
planning and other permissions required to construct and operate the facility.

 

There also exists, given that Longford is located in the Midlands of Ireland,
an opportunity for grant funding through the EU Just Transition Fund. In
November 2022, the Irish Government approved its Territorial Just Transition
Plan and Programme for the period up to 2027, which was adopted by the
European Commission on 15 December 2022. This allocated up to €84.5 million
of funding, providing for €169 million of investment within the region.

 

The Longford Project will supersede pre-existing arrangements between HUI
and PHE with respect to an exclusivity agreement between PHE and
HUI's UK operating subsidiary, a related collaboration agreement, and the
existing heads of terms regarding a proposed project in Tipperary that will no
longer proceed. The parties have agreed that the latter agreements will be
mutually terminated without any further obligation on either party. The
parties will continue to work together on the proposed joint development of a
waste plastic to hydrogen facility at a site in Konin, Greater Poland, as
announced on 23 August 2022.

 

Tony Garner-Hillman, Non-Executive Chairman of PHE commented:

 

"The Republic of Ireland remains an important geography for Powerhouse
Energy. The Irish economy was reported as growing by 12.2% in 2022, making it
one of the fastest growing economies in Europe whilst inflation also appears
to have peaked earlier than in many other economies. All of this bodes well as
it points to the Republic of Ireland being an excellent place to do business
and this project provides us with an excellent opportunity to build a presence
in this jurisdiction. We look forward to working with HUI and developing this
exciting opportunity."

 

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

 

"This joint venture aligns the interests of both HUI and PHE to make this
project a success. It is also in line with the Company's growth strategy, with
PHE having a seat at the table in the project decision making. We look forward
to providing updates on the project as it progresses."

 

 

 

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

 

 

 

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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