- Peel Environmental Supplemental Agreement to accelerate the development of Protos Energy Park
PowerHouse Energy Group plc (AIM: PHE), the UK technology company pioneering hydrogen production from waste plastic, is pleased to announce that it has entered into a supplemental collaboration agreement with Peel Environmental (part of Peel L&P) (“Peel”) which aims to accelerate the development of the Protos Energy Park and four further DMG® sites in the UK.
Powerhouse has entered into an agreement (the “Supplemental Agreement”) with Peel, Waste2Tricity Limited (“W2T”) and Waste2Tricicty (Protos) Limited following the collaboration contract announced on 12 August 2019 (the “Collaboration Contract”).
The Supplemental Agreement allows Peel to act as the developer of Protos and four further DMG® sites in the UK pending finalising the proposed acquisition of W2T by PowerHouse, with W2T relinquishing its entitlement to UK exclusivity for the technology and development rights of PowerHouse’s DMG® technology.
The Supplemental Agreement is intended to prevent any delays in the development of Protos and four further DMG® sites in the UK which have been identified as the most likely to be developed first. The remaining six sites under the Collaboration Contract remain unaffected by the Supplemental Agreement, however, the technology and development rights will all revert to PowerHouse on completion of the proposed acquisition of W2T.
The Supplemental Agreement contains arrangements for the monetisation of the DMG® Technology at Protos, which will include a £500,000 annual license fee payable to PowerHouse per project upon each project being commissioned. Peel has also agreed to pay PowerHouse £100,000 in historic back costs. The PowerHouse license fees will include a 60:40 fee split with W2T pending completion of the proposed PowerHouse acquisition of W2T. In this context, due diligence and negotiations for the acquisition of W2T are proceeding. An announcement will be made and a circular convening a General Meeting to approve the necessary resolutions to effect the acquisition is expected to be posted to shareholders as soon as the arrangements are finalised.
David Ryan, CEO of PowerHouse, said: “We very much welcome Peel Environmental taking on the role of developer for the Protos site. Their well reputed skills and experience of successfully developing major infrastructure projects will now be fully brought to bear on the roll-out of the first commercial DMG® plastic to hydrogen facility at Protos and at future sites in the UK.
The current trialling of the proposed plastic waste stream in the process demonstrator is continuing, with excellent gas production results for the output levels expected. This has facilitated our license fee negotiations resulting in this Supplemental Agreement.”
Tim Yeo, Chair of W2T, commented: “I am pleased to see the momentum continuing as the details of the acquisition are being finalised. Peel’s Plastic Parks and the PowerHouse exclusive technology will be vital to help the UK tackle its unrecyclable waste plastic problem, so the acceleration of this activity is very much welcomed”
Myles Kitcher, Managing Director of Peel, commented: “Hydrogen is set to play a major role in the UK’s clean growth strategy and we’re leading the way in the North West. This agreement cements our relationship with PowerHouse and our support for their pioneering plastic to hydrogen technology. Working together, we will now be commercialising the technology at our Protos development in Cheshire before looking at other sites across the country where it could be rolled out.
“This is all part of Peel L&P’s contribution to the UK’s journey to zero carbon, where we can not only find a more sustainable way to treat plastic waste but also create a local source of low carbon transport fuel which will help tackle air quality issues in our communities.