President Energy PLC’s (LON:PPC) hydrogen and ammonia subsidiary Atome acquired a 75% stake in a Northern European business which is working to secure a power purchase agreement for a pilot project.
Talks have also begun with ‘a recognised world leader in original equipment manufacturing for the production of green hydrogen and ammonia’, the AIM-quoted company said.
It envisages a pilot project starting production by the end of 2023 and, subject to results, a second phase of development to produce 80,000 tonne of ammonia per year by ‘the middle of the decade’.
The deal effectively adds a second project for Atom, although the acquired Northern European business has no tangible assets, other than its team and plans, and is being bought for a nominal fee.
President's chairman Peter Levine said in a statement: "The announcement today further reinforces the determination of President's subsidiary, Atome, to fulfil its strategic objective to geographically expand its green hydrogen and ammonia portfolio to the important European market ahead of the targeted listing of Atome's shares on the London Stock Exchange later in the year
"Although at an early stage, discussions are underway in relation to both the purchasing of power and the sourcing of relevant hardware.
"This latest development underlines the present and potential future material shareholder value in Atome which we expect the projected forthcoming flotation to realise and unlock for President's own shareholders as well as providing those coming in on the listing with significant upside in a sector of increasing importance in the drive towards a carbon neutral future."