Proposed Joint Venture with Hydrogen Utopia International Plc for a non-recyclable
Waste Plastic to Hydrogen facility at Konin, Poland
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 (AQSE: HUI) (“HUI”) for the joint development of a facility at a site in Konin, within the Wielkopolska province of Poland. Once full documentation is signed, this will formalise PHE’s position within the project and the use of PHE’s proprietary technology that generates hydrogen from non-recyclable waste plastics.
PHE and HUI have agreed, in principle, to establish a joint venture vehicle owned equally by each company (“JVCo”) to which PHE and HUI would contribute development costs for the Konin Project on a 50:50 basis.
Under the HoTs, PHE will not make any entry payments to HUI, but HUI will be allowed to recover at financial close of the project, its costs to date fixed at €250,000 with a €250,000 premium. The intent is for the ongoing development costs of both parties to be capitalised at financial close and recovered through an appropriate mechanism to be agreed.
PHE’s participation in the JVCo is subject to the agreement between PHE and HUI of definitive agreements, including the management and governance of the JVCo.
PHE announced on 13 July 2022, a similar arrangement with HUI at Lanespark, Co Tipperary, Ireland, and on 15 August 2022 it announced that it was taking a 50% shareholding in Protos Plastics to Hydrogen No 1.
Keith Riley, Interim Chairman of PHE commented:
“This formalises PHE’s position in the Konin project and brings to an end speculation within the market on what PHE’s role will be. We now have the task of agreeing the detailed documents for all three projects at Protos, Lanespark and Konin, which will conclude PHE’s recently adopted policy of holding at least some level of control of the projects on which it embarks.
“I am well aware that this increases our cash flow, so an important aspect of the project controls we are implementing is careful cash management and expenditure control which we have built into the management forecasts. HUI has made a fast start in Poland, and announced that it had signed a Letter of Intent with the City of Konin on 3 February 2021. Events in Eastern Europe since, however, inevitably mean that this project is likely to fall behind. In consequence, I am confident that the three developments can be phased.”
The Company will provide an update once a binding agreement has been entered into.
For more information, contact:
Powerhouse Energy Group plc
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