The information contained within
this announcement is deemed by the Company to constitute inside
information stipulated under the Market Abuse Regulation (EU) No.
596/2014 as it forms part of UK domestic law by virtue of
the European
Union (Withdrawal) Act 2018. Upon the publication of this
announcement via the Regulatory Information
Service, this inside information is now
considered to be in the public domain.
11 March 2024
Hydrogen Utopia International
PLC
(the
"Company" or
"HUI")
Joint Venture Agreement for
the Longford Project
Hydrogen Utopia International PLC, a
company specialising in turning non-recyclable mixed waste plastic
into hydrogen and other carbon-free fuels, new materials or
distributed renewable heat, refers to its announcement of 30
October 2023. That announcement advised that Powerhouse Energy
Group Plc (AIM:PHE) ("PHE") decided to defer its investment in the
proposed joint development of a non-recyclable plastic
waste-to-hydrogen facility site at Longford, County Longford in the
Republic of Ireland ("Longford Project").
HUI is now pleased to announce
that:
(1) its Irish subsidiaries, Alister
Future Technologies (AFT) Limited ("AFT") and Eranova Longford
Limited ("Eranova") have entered into a subscription and
shareholder agreement with PHE and its subsidiary, Powerhouse
Energy International Limited ("PHE International") (the
"Subscription and Shareholder Agreement") 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
Fisherstown Property Holdings Limited ("FPHL") have agreed to amend
and restate the option agreement dated 10 March 2023 entered into
between HUI 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 ("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.
HUI will now receive a payment of
£100,000 upon signing of the Subscription and Shareholder
Agreement. This is in addition to the £100,000 received when the
heads of terms were signed on 13 March 2023. A further payment of
£100,000 in cash will 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 ("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 developing the
application for planning and permitting on the site, which will be
carried out by the JV company, Eranova.
HUI looks forward to working closely
with PHE 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.
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.
."
Paul Emmitt, Chief Executive Officer of
Powerhouse,
commented:
"PHE have
always been committed to this JV and after working with Aleksandra
Binkowska and the HUI team, I am pleased that agreeable terms have
been met. I look forward to getting the Longford development moving
alongside our other projects."
For more information about the
Company, please refer to our website: www.hydrogenutopia.eu
For further information please
contact:
Hydrogen Utopia International
PLC
Aleksandra
Binkowska
+44 20 3811
8770
Alfred Henry Corporate Finance
Limited (AQSE Corporate Adviser)
Nick Michaels/Maya Klein
Wassink
+44 20 3772
0021
Novum Securities Limited
(Broker)
Jon Belliss/Colin
Rowbury
+44 20 7399 9400
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.
HUI will target areas where there is
significant private sector interest or potential, financial backing
is accessible and or where substantial EU and/or government funded
sources of grants and loans are or may be available. The global
increase in fossil fuel-based energy prices reinforces the need for
alternative, price competitive energy sources, which
HUI's business model
can provide.
