Powerhouse Energy Group shares fell 2.9% to 1.7p in late morning trading on Tuesday after the company announced joint venture plans with Hydrogen Utopia International.
The project will see the two companies develop a facility in Konin, Poland, to hydrogenate non-recyclable waste plastics.
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Powerhouse Energy confirmed that the two companies have agreed in principle to establish a joint venture vehicle, with each group having a 50-50 stake.
Both groups will contribute equally to the development costs of the Konin project.
The terms agreed included that Powerhouse Energy would not pay any participation fees to Hydrogen Utopia, but that Hydrogen Utopia would recover its costs to date at the end of the project with a premium of up to €250,000. It will be possible.
Powerhouse Energy announced a similar agreement with Hydrogen Utopia on 13 July 2022 in Lanes Park, County Tipperary, Ireland. Furthermore, on August 15, 2022, the company announced that it will acquire 50% of the shares in Protos Plastics to become Hydrogen Number One.
“This formalizes PHE’s position on the Konin project and puts an end to speculation in the market about PHE’s role. “We have been tasked with agreeing a detailed document, which will complete PHE’s recently adopted policy of retaining at least some control over the projects it undertakes.” Energy Interim Chairman said. Keith Riley.
“We are fully aware that this will increase our cash flow, so a key aspect of the project management we have in place is careful cash management and expense management that we incorporate into our operating forecasts. We got off to a fast start in Poland, announcing on February 3, 2021 that we had signed a letter of intent with the city of Konin.”
“However, it is inevitable that subsequent events in Eastern Europe will likely delay this project. As a result, I am confident that we will be able to progress the three developments in stages.”
