The Powerhouse Energy Group PLC (LON: PHE) share price rose 6.67% after announcing that it had assumed full ownership and control of the Protos plastics to hydrogen project at the Protos site near Chester in the UK. The project was previously a joint venture with Peel NRE.
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The company acquired the entire shareholding in Protos Plastics from Peel NRE Ltd. In addition, the company now owns all the shares in Hydrogen No 1 Ltd, the special purpose vehicle (SPV) created to operate the project. The acquisition was completed for a nominal fee of £1.
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Powerhouse Energy confirmed that the takeover ended the discussions with Peel NRE about the company acquiring a 50% stake in the SPV. PHE also agreed to a variant of the IP Licence Agreement signed on 30 June 2021 with Peel, which designates the SPV as the license beneficiary.
The new deal will terminate Peel’s option to extend its exclusivity regarding deploying PHE's technology. PHE and Peel have also agreed to extend the loan facility agreement between PHE and the SPV for a year.
However, the option agreement between the SPV and Peel allowing the SPV to lease the project site will remain intact and will be altered to limit any annual rent reviews to 2% and 5%.
Powerhouse Energy also extended the lease option to 28 March 2024, with the option to extend it for another year for a £150,000 fee. PHE will also pay a £400,000 fee for the provision of gas easement and £532,000 for the power export facility on entering the lease.
Keith Riley, Acting Chief Executive Officer of PHE, commented: “Having spent some time considering the best option for the Protos project, we have agreed with Peel that PHE will assume full control of the project and its further development. In this respect, we have already started working with Petrofac and are reviewing the engineering of the project with the view to optimising costs and performance. The next step will be to seek commercial agreements for the offtakes, whether this be electricity, heat, hydrogen or other products, prior to seeking to raise finance for the construction.”
*This is not investment advice.
Powerhouse Energy (PHE) share price.
The Powerhouse Energy share price rose 6.67% to trade at 0.96p, from Friday’s closing price of 0.90p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.