Powerhouse Energy Group PLC (AIM:PHE) has decided to defer its proposed joint development with Hydrogen Utopia International PLC (LSE:HUI, OTCQB:HUIPF) for a waste-to-hydrogen facility in Longford, Republic of Ireland.
Citing the need to review its overall project pipeline and assess the impact on its existing cash resources, it has decided to hit the pause button.
In the update, Powerhouse said it had concluded that the capital contributions initially earmarked for the Longford Project are not currently in the company's best interests.
Initial heads-of-terms were inked back in March. The company will now focus on prioritising other potential projects in its pipeline.
"We have had to take a difficult decision in the interests of the long-term position as we continue to build a robust company," said Powerhouse chairman Tony Garner-Hillman.
"Our ongoing review of the Longford Project since the Heads of Terms were signed in March, along with developments in other areas of our business, have all had to be taken into account.
"This has taken us to the inescapable conclusion that, through today's eyes, the best interests of PHE dictate that now is not the right time to commit to the Longford Project and to making significant capital contributions. We remain hopeful that position will change."