Powerhouse Energy has acquired complete ownership of the Chester project.

Powerhouse Energy Group PLC (AIM: PHE) has acquired complete ownership and control of the plastics-to-hydrogen project at the Protos site near Chester.

To obtain full control of the project, the waste-to-energy company will pay a token amount to its partner Peel Holdings for their share in the special purpose vehicle (SPV) established for the project’s development.

The loan facility between PHE and the SPV will now be an internal arrangement, with a one-year extension, according to a PHE statement. Additionally, the option to lease the current site has been extended until March 2024 with capped rent reviews.

The lease can be prolonged for another year at a cost of £150,000, and if taken up, a fee of £400,000 for the gas easement provision and £532,000 for the power export facility will be due.

PHE’s acting CEO, Keith Riley, stated, “After evaluating the best course of action for the Protos project, we have agreed with Peel that PHE will assume complete responsibility for the project and its further development. In this regard, we have already begun collaborating with Petrofac and are assessing the project’s engineering to optimize costs and performance.”

He added, “The subsequent step will involve securing commercial agreements for off-takes, such as electricity, heat, hydrogen, or other products, before attempting to raise funds for construction.”

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