Powerhouse Energy Group PLC (AIM:PHE, ETR:BT81) told investors that its partner Hydrogen Utopia International has signed a letter of intent with Simitli, a city in Bulgaria, where it will build a Distributed Modular Gasification plant (DMG).
The DMG project will use Powerhouse technology to convert waste plastics and tyres to create a source of hydrogen.
In a statement, Powerhouse noted that the site in Simitli is located in a commercial sector close to existing waste remediation facilities.
The project news comes nearly two months after the collaboration between Powerhouse and Hydrogen Utopia was announced.
The October collaboration agreement allows Hydrogen Utopia to develop projects in territories outside the UK, which will be approved by Powerhouse.
A formal licence agreement covering licence fees to be received by Powerhouse for the use of DMG technology has yet to be agreed.
“Powerhouse is pleased to see HUI’s progress in Bulgaria,” the company said in a statement.