Powerhouse Energy's (LON: PHE) share price is climbing on Tuesday after the announcement that it has signed an exclusivity agreement with Hydrogen Utopia International (HUI).
Powerhouse, the UK technology company commercialising hydrogen production from waste plastic, said HUI has been granted an exclusive non-transferable licence to apply Powerhouse’s DMG technology in Poland, Greece and Hungary.
HUI is aiming to create a project pipeline in the regions for the DMG technology by seeking funding from and partnering with states, regional authorities and the private sector.
The exclusivity agreement follows the agreement of non-legally binding heads of terms with HUI for Poland, which was announced on 12 November, and Greece and Hungary announced on 10 May. HUI also paid Powerhouse deposits totalling €125,000.
Under the exclusivity agreement, HUI will pay Powerhouse a further €325,000 by the end of 2021, with a further €300,000 to be paid 12 months later. A royalty fee will also be agreed.
In addition, Powerhouse will also continue to receive a licence fee for any DMG plant that becomes operational.
James Greenstreet, Non-Executive Chairman of Powerhouse Energy Group, said: “Powerhouse is pleased to sign this binding exclusivity agreement with HUI which is a champion of our technology, seeking to drive its rollout across Poland, Greece and Hungary. This builds on our announcement of 12 November 2020 and is part of 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's shares are currently up 1.06% at 3.82p
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