11 March 2024
Powerhouse Energy Group plc
("Powerhouse", "PHE" or the "Company")
Update on
Longford Project JV
Signing
of Joint Venture with Hydrogen Utopia International Plc for the
development of a non-recyclable Waste Plastic to Hydrogen facility
in the Republic of Ireland (the "Longford Project")
Powerhouse Energy Group Plc (AIM:
PHE), a company pioneering integrated technology which converts
non-recyclable waste into low carbon energy, refers to its
announcement of 30 October 2023. That announcement advised that the
Company had decided to defer further progress towards committing to
the Longford Project whilst it took stock of the final position in
its negotiations 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.
Powerhouse is now pleased to report
the following developments:
(1) Powerhouse and its
subsidiary, Powerhouse Energy International Limited ("PHE
International") have entered into a subscription and shareholder
agreement (the "Subscription and Shareholder Agreement") with HUI
and its Irish subsidiaries, Alister Future Technologies Limited
("AFT") and Eranova Longford Limited ("Eranova") in connection with
the building of a waste plastic to hydrogen plant on a greenfield
site at Fisherstown Energy Park in County Longford, Ireland;
and
(2) AFT, PHE International,
HUI and Mashup PLC (previously called Fisherstown Property
Holdings Limited) ("FPHL") have agreed to amend and restate the
option agreement dated 10 March 2023 entered into between Eranova
and FPHL, pursuant to which FPHL (as freeholder of the land on
which the Longford Project would be developed) granted an option to
Eranova to lease the site for 25 years ("the Option For Lease"). Up
to €150,000 is payable by Eranova to FPHL under the Option For
Lease, with the timing for payment dependent on the date on which
planning permission for the Longford Project is obtained.
Under the amended terms of the
Subscription and Shareholder Agreement, AFT and PHE International
will now each own 50% of Eranova and development costs will be
contributed to on a 50:50 basis. Eranova will be the developer of
the Longford Project, and each party will have the right to appoint
up to two members to the board of Eranova.
Initial financing is being provided
by AFT and PHE International by way of shareholder loans (for a
maximum of €200,000 each) under separate loan agreements. Any
future financing will be raised in accordance with the Subscription
and Shareholder Agreement through further loans or (with the
consent of the shareholders only) subscription for
shares.
Signing of the Subscription and
Shareholder Agreement requires PHE to make an immediate payment of
£100,000 to HUI. This is in addition to the £100,000 already paid
to HUI, as noted in the Company's announcement on 21 March 2023. A
further payment of £100,000 in cash will also be made to HUI once
planning permission has been granted for the Longford
Project.
Under the terms agreed between the
parties, FPHL has also been granted an option to acquire shares in
Eranova (the "FPHL Shares Option"). Under the terms of the FPHL
Shares Option, FPHL may, within 10 days of anticipated financial
closure of the Longford Project or anticipated commencement of
construction of the Longford Project, exercise an option for the
transfer or subscription by it of new shares in Eranova. On
exercise of the FPHL Shares Option, this would result in FPHL
becoming the holder of non-voting shares amounting to 5% of the
issued share capital of Eranova. The exercise of the FPHL Option
would result in an equal dilution of the shareholdings of AFT and
PHE International.
Longford, a county in the Irish
Midlands, is anticipated to be one of the prime beneficiaries of
the EU Just Transition Fund in Ireland. On 29 November 2022, Irish
Government approval was given for Ireland's Territorial Just
Transition Plan and its associated programme for the period to
2027, which will provide €169 million of funding in the Irish
Midlands; the Irish Government plan was adopted by the European
Commission on 15 December 2022.
The Company sees this project as an
opportunity to progress a project within a European Union Just
Transition Fund area, which brings with it the potential of grant
funding for the development. The next phase will be the developing
the application for planning and permitting on the site and overall
management of the project, which will be carried out by the JV
company, Eranova.
Powerhouse looks forward to working
closely with HUI to deliver this project successfully, fostering
innovation and creating a positive impact on the global hydrogen
landscape. Further updates will be provided as and when
appropriate, with the immediate focus now being on securing
planning permission.
Paul Emmitt, Chief Executive Officer
of Powerhouse, commented:
"PHE has always been committed to this JV and after working
with Aleksandra Binkowska and the HUI team, I am pleased that
mutually agreeable terms have now been reached. I look forward to
getting the Longford development moving alongside our other
projects."
Aleksandra Binkowska, CEO of HUI,
commented:
"Maintaining a strong allegiance with PHE has been a
cornerstone for HUI, and I am thrilled about finalising the Irish
joint venture agreement. Both HUI and PHE are dedicated to
establishing what we believe will be one of the first plastic waste
to hydrogen facilities We look forward to working with the
Powerhouse team to deliver this exciting project.
"
This announcement contains inside
information for the purposes of the UK version of the market abuse
regulation (EU No. 596/2014) as it forms part of United Kingdom
domestic law by virtue of the European Union (Withdrawal) Act 2018,
as amended.
For
more information, please visit www.phegroup.com
or contact:
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|
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Powerhouse Energy Group plc
Paul Emmitt
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+44 (0) 203 368 6399
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Strand Hanson Limited (Nominated & Financial
Adviser)
Ritchie Balmer / James Harris / Rob
Patrick
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+44 (0) 207 409 3494
|
Turner Pope Investments (TPI) Ltd (Broker)
Andrew Thacker / James
Pope
|
+44 (0) 203 657 0050
|
Tavistock (Financial PR)
Simon Hudson / Nick Elwes / Saskia
Sizen
|
powerhouse@tavistock.co.uk
|
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. The 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 Group also
incorporates Engsolve Ltd, which offers Engineering Services across
all sectors with speciality services in the development of new
technologies and clean energy.
Powerhouse Energy is quoted on the
London Stock Exchange's AIM Market under the ticker: PHE and is
incorporated in England and Wales.
About Hydrogen Utopia International plc
HUI aims to become one of the
leading new European companies specialising in turning
non-recyclable mixed waste plastic into hydrogen and other
carbon-free fuels, new materials or distributed renewable
heat.
A HUI facility uses non-recyclable
mixed waste plastic as feedstock and turns it into syngas from
which new products and energy can be produced. HUI anticipates that
its revenues will be derived from a variety of sources, dependent
upon location and configuration of the HUI facilities, including
the sale of syngas, hydrogen and other gases, electricity and heat
sales, and the payment to it of fees for a given quantity of
non-recyclable mixed waste plastic received at a HUI
facility.
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