Powerhouse Energy Group PLC (LON: PHE) shares surged 12.6% after signing a collaboration agreement with a subsidiary of Hydrogen Utopia International Plc to deploy and market its DMG® technology in regions outside the United Kingdom.
The company awarded HU2021 International UK Limited (HUI) exclusive rights to market and deploy its DMG® technology in Greece, Poland, and Hungary. The firm received non-exclusive rights to other regions globally.
The two companies will develop and implement projects that generate hydrogen from waste plastic using Powerhouse Energy’s patented technologies on a commercial scale in international territories to the benefit of both firms.
Investors cheered the move, as evidenced by today’s rally, although the financial details of the partnership were not disclosed to the public.
Today’s announcement follows from the initial exclusivity agreement signed with HUI to develop a plant in Konin, Poland, in late August, followed by talks between Linde, HUI and Powerhouse Energy.
Powerhouse Energy’s model of seeking partnerships to develop its distributed and modular hydrogen production facilities will minimise its costs while allowing its technology to be used in multiple countries across the globe.
James Greenstreet, Powerhouse Energy Group’s Non-Executive Chairman, said: “Powerhouse is pleased to sign this collaboration agreement with HUI which is championing our technology across Europe and potentially the rest of the world.”
“This agreement provides a framework for us to move forward with projects with Hydrogen Utopia and will help to deliver our long-term vision for DMG® technology to be deployed internationally, helping the world transition to clean energy whilst providing a solution to end-of-life plastic.”
The company has adopted a model championed by other sustainable energy companies such as Eqtec, where they partner with other capable firms to develop and implement their projects.
Investors looking to open new positions in Powerhouse Energy might be best served to wait for its shares price to break above the 4.44p resistance level or for a retest and bounce off the 3.56p support level, which present the best risk-reward setups.
*This is not investment advice.
Powerhouse Energy share price.
Powerhouse Energy shares rallied 12.6% to trade at 4.11p, rising from Wednesday’s closing price of 3.65p.
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