Powerhouse Energy Group PLC (AIM:PHE) told investors it has signed a Letter of Intent (LoI) with B.S. Holdings Limited (BSH) to be the exclusive supplier of 99.999% purity hydrogen for BSH's proposed Fuel Cell (Penta) H2P project in Ballymena, Northern Ireland.
It’s a key step for Powerhouse Energy, and its technology, which converts non-recyclable waste into low-carbon energy.
Specific terms are still being finalised, pending agreement between project participants - DESNZ, Ecotricity, SONI, and NIE Networks.
"This is a first of its kind agreement and we are delighted to have entered into the LoI with BSH for this potential DESNZ backed project,” Powerhouse chief executive Paul Emmitt said.
“One of the key issues holding back the increased utilisation of hydrogen has been gaining appropriate offtake agreements.
“This LoI has the potential to deliver that for our Ballymena project."
The LoI envisages Powerhouse Energy supplying hydrogen at a price lower than that of both Green Hydrogen and the current UK CFD strike price, as this is a "first of a kind" (FOAK) development project supported by DESNZ.
Powerhouse will also support BSH's other Penta (Combined Heat and Power) CHP projects requiring hydrogen within the Mid and East Antrim Council region.
Also, BSH will assist Powerhouse in securing further commercial clients and provide priority access to future projects in Northern Ireland and the wider UK.
BSH chief executive Brian Hood added: "Without the fuel, the projects will not float. Too many times we see great ideas and advances falter because of the inadequacy of fuel and fuel at a sensible price."