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Powerhouse evolves its business model
Proposed Joint Venture between Powerhouse and Hydrogen Utopia in Ireland
Powerhouse Energy Group (PHE), a company pioneering integrated technology which converts non-recyclable waste into low carbon energy, has demonstrated it is evolving its business model under new CEO Paul Drennan-Durose, considering collaborations with third parties.
The first of such collaborations is a proposed Joint Venture between Powerhouse and Hydrogen Utopia International Plc (HUI). PHE has agreed heads of terms (“HoTs”) with HUI for the proposed joint development of a site at Lanespark in Co. Tipperary in the Republic of Ireland.
It is anticipated the Lanespark Project would, if developed, lead to PHE’s first operational full scale waste plastic to hydrogen facility outside of the UK. Powerhouse also continues to support and be the technology provider to Peel NRE Ltd – part of Peel L&P – and its SPV at Protos Strategic Energy & Resource Park in Cheshire, UK.
HUI and Powerhouse have agreed, in principle, to establish a joint venture vehicle owned equally by each company to which PHE and HUI would contribute development costs for the Lanespark Project on a 50:50 basis.
Under the HoTs, it is anticipated that PHE will pay HUI a non-refundable payment of £400,000 in cash, and advance to HUI a loan of £600,000, each in recognition of HUI’s contribution to date to the Lanespark Project. It is anticipated that the Lanespark Project, which encompasses a suitable site in an EU Just Transition Fund region, would provide potential access to an investment grade plastic feedstock supplier and the potential to agree offtake for the facility’s anticipated hydrogen and syngas outputs.
Keith Riley, Interim Chairman of PHE commented:
“This is an important strategic step forward for Powerhouse Energy. Not only does it provide a new project for Powerhouse’s hydrogen production technology, it also represents our first major project outside the UK, and the first time Powerhouse has been party to the special purpose vehicle that will develop and construct the facility. We will have a seat at the table in the project decision making, aligning the interests of both HUI and PHE in its success.”
Paul Drennan-Durose, CEO of PHE, commented:
“Powerhouse Energy must create a quality of choice on projects. In this early stage of commercialisation there is a need to consider the unusual, and to have a more flexible business model. The Republic of Ireland is also a good fit for Powerhouse at this stage in its evolution, its close enough to avoid an overreach and it is anticipated that the solution will be of great benefit to local communities, the private sector, and to the state.”