Powerhouse Energy has reached an agreement regarding the terms for the Longford plastic waste development site.

Powerhouse Energy Group PLC (AIM: PHE) has announced that it has entered into Heads of Terms (HoT) with Hydrogen Utopia International PLC (LSE: HUI, OTCQB: HUIPF) regarding the creation of a non-recyclable plastic waste-to-hydrogen facility site at Longford in Ireland.

The HoTs stipulate that PHE and HUI will utilize a joint venture entity, 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 up to £400,000 in cash, which is a non-returnable payment, in recognition of HUI’s contribution to identifying the Longford Project, securing the option to lease and advancing the project. This cash payment includes an initial payment of £100,000 on the signing of the HoTs, followed by payments of £100,000 on completion of the project documentation and £200,000 once planning permission has been granted.

Last week, HUI declared that it had reached an agreement and signed an option over the lease at the 78-acre Fisherstown Energy park in Longford. The Longford Project will replace previous arrangements between PHE and HUI with regard to an exclusivity agreement between PHE and HUI’s UK operating subsidiary, and the related collaboration agreement and the existing heads of terms regarding a proposed project in Tipperary will no longer proceed.

However, a joint development at Konin, Greater Poland, is still ongoing.

In a statement, Keith Riley, Powerhouse’s acting chief executive, stated that “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.”

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