Powerhouse Energy Group PLC (AIM:PHE) (PHE) said it has agreed Heads of Terms (HoT) with Hydrogen Utopia International PLC (LSE:HUI, OTCQB:HUIPF) (HUI) for a non-recyclable plastic waste-to-hydrogen facility site at Longford, County Longford in Ireland.
Under the HoTs, PHE and HUI have agreed to use a joint venture vehicle, incorporated in Ireland, with equal shareholding by each party and development costs being contributed to on a 50:50 basis.
PHE has agreed to pay HUI a non-returnable payment of up to £400,000 in cash in recognition of HUI's contribution to identifying the Longford Project, securing the option to lease and progressing the project.
This cash payment comprises an initial payment of £100,000 on signing the HoTs with further payments of £100,000 on finalisation of the project documentation and £200,000 once planning permission has been granted.
HUI announced last week it had agreed and signed an option over the lease at the 78-acre Fisherstown Energy park in Longford.
Powerhouse said the Longford Project will supersede pre-existing arrangements between HUI and PHE with respect to an exclusivity agreement between PHE and HUI's UK operating subsidiary.
A related collaboration agreement and the existing heads of terms regarding a proposed project in Tipperary will no longer proceed, though a joint development at Konin, Greater Poland is still ongoing.
In a statement, Keith Riley, Powerhouse’s acting chief executive, said: "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.“