REG - Powerhouse Enrgy Grp - Proposed Joint Venture with Peel at Protos

Powerhouse EnergyAnnouncement

05/09/2022 07:00

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RNS Number : 1862Y  Powerhouse Energy Group PLC  05 September 2022

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 5 September 2022

Powerhouse Energy Group Plc

 (the "Company" or "PHE")

 

Proposed Joint Venture with Peel at Protos Energy Park

 

Powerhouse Energy Group PLC (AIM: PHE), the pioneering integrated technology
company which converts non-recyclable waste into low carbon energy, announced
on 15 August 2022 that the Company was taking a 50% shareholding in Protos
Plastics to Hydrogen No 1 Ltd. The Company is pleased to announce that it has
now agreed variations to existing agreements with Peel NRE Ltd as follows:

 

Collaboration Agreement

 

Collaboration Agreement dated 9 August 2019 made between (1) Peel
Environmental Limited (2) Waste2Tricity Limited (3) Waste2Tricity (Protos)
Limited and (4) Powerhouse Energy Group Plc as amended by a letter dated 29
October 2021 - this agreement has been extended until 31 March 2023.

 

The Collaboration Agreement was signed in August 2019 and establishes the
formal relationship between PHE and Peel to develop a project using PHE's DMG
Technology on the Protos site. It commits the counterparties to seeking
funding for the initial development and working together on 10 further
projects. It also commits the counterparties to exclusivity and "non-compete"
and mutual confidentiality during the Collaboration Period.

 

Option for Exclusivity

 

Option for Exclusivity dated 6 March 2020 in respect of the development and
deployment of Distributed Modular Gasification technology - a deed of
variation has been signed extending the Option End Date to 31 March 2023.

 

Under this agreement, PHE granted Peel an option to enter into an Exclusivity
Agreement with PHE in consideration of a payment to PHE of £500,000,
superseding relevant terms set out in the Collaboration Agreement. The Option
period commenced on PHE agreeing to acquire the entire shareholding of
Waste2Tricity Ltd. If exercised, the Option will give Peel the exclusive right
to develop, distribute, promote, and operate DMG Technology in the United
Kingdom. It does not, however, prevent PHE from carrying out business
unrelated to DMG Technology, provided it does not compete for the same plastic
feedstock required by an existing or contemplated project of Peel.  It also
anticipates the parties entering into a Service Agreement with provision for
an annual licence fee of £500,000 per annum (indexed) to be paid to PHE. The
Service Agreement was entered into on 30 June 2021.

 

Loan Facility Agreement

 

Loan Facility Agreement with Protos Plastics to Hydrogen No1 Limited - the
loan facility has been extended until 31 March 2023.

 

The Loan Facility Agreement was signed on 11 May 2021, providing the Peel
special purpose vehicle for the Protos plastics to hydrogen project (the
'Project') with the ability to draw down funds from PHE up to the sum of
£3,800,000. The loan is be repaid on the date of the Final Investment
Decision of the project and carries a coupon of 2% above Base Rate. The loan
is secured by a step-in on the lease of the Project site. The sums drawn down
can only be made against a development cash flow schedule listing prescribed
activities and costs related to development of the Project.

 

All other terms and conditions remain unchanged.

 

Keith Riley, Interim Chairman and Acting CEO of PHE commented:

 

"This facilitates PHE taking the shareholding in the Protos
plastics-to-hydrogen project. PHE looks forward to working closely with Peel
to bring the project to fruition and providing further updates 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

 Megan Liddell

 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 the United Kingdom.

 

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

 

 

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