Powerhouse Energy Group PLC (AIM:PHE) (PHE) has taken full ownership and control of the plastics-to-hydrogen project at the Protos site near Chester.
The waste-to-energy group will pay partner Peel Holdings a nominal sum for its share of the special purpose vehicle (SPV) established to develop the plastics-to-hydrogen project at the site.
A loan facility between PHE and the SPV will be extended for one year and now be an intragroup arrangement, according to a statement from PHE, while an option to lease the current site has been extended until March 2024 with rent reviews capped.
The lease can be extended for a further year at a cost of £150,000 with a fee of £400,000 for the provision of the gas easement and £532,000 for the power export facility payable if the lease is taken up.
Keith Riley, PHE’s acting chief executive, said: "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.”