The Powerhouse Energy Group PLC (LON: PHE) share price rose 5.26% after signing a Heads of Terms agreement with Hydrogen Utopia International Plc to co-develop a non-recyclable plastic waste-to-hydrogen facility site at Longford, County Longford in Ireland.
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The two companies will finalise a joint venture agreement to develop the Longford Project at Fisherstown Energy Park in the Midlands of Ireland. The firms will own and work on the project on a 50:50 basis via a joint venture entity registered in Ireland.
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Powerhouse Energy has agreed to pay Hydrogen Utopia up to £400,000 in cash to compensate it for securing the option to lease and progressing the project. PHE will make an initial payment of £100,000 after signing the HoT agreement, followed by a further payment of £100,000 once the project documentation is finalised.
PHE will make a final payment of £200,000 in cash once the Longford Project has been granted planning permission. The project’s location at Fisherstown Energy Park is strategic, given that the park has its electrical grid connection, an electrical substation and existing wastewater treatment facilities.
Fisherstown Energy Park also has a good road network connecting to the M4 and M6 motorways. The two highways directly link to Galway and Dublin, Ireland’s two largest cities. Hydrogen Utopia’s wholly-owned subsidiary has secured the option to purchase a 25-year lease on a plot within Fishertown Energy Park.
Powerhouse Energy also revealed that the project could access EU grant funding due to its location within the Midlands of Ireland since the Irish government approved its Territorial Just Transition Plan and Programme lasting up to 2027.
Lastly, the Longford Project HoT supersedes all previous agreements between HUI and PHE, including the HoT on the proposed Tipperary project, which has been terminated.
Keith Riley, PHE’s Acting CEO, commented: “This joint venture aligns the interests of both HUI and PHE to make this project a success. It is also in line with the Company's growth strategy, with PHE having a seat at the table in the project decision-making. We look forward to providing updates on the project as it progresses.”
*This is not investment advice.
Powerhouse Energy (PHE) share price.
The Powerhouse Energy share price rose 5.26% to trade at 1.00p, from Monday’s closing price of 0.95p.
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