Powerhouse Energy Group PLC (AIM:PHE, ETR:BT81) (PHE) and its partner Hydrogen Utopia (HUI) are proposing jointly to develop a waste plastic to hydrogen facility at Lanespark in Co. Tipperary, Ireland.
Once developed, it would be PHE's first such operational full-scale facility outside of the UK.
Keith Riley, Powerhouse’s interim chairman said: "This is an important strategic step forward".
"Not only does it provide a new project for Powerhouse's hydrogen production technology, but it also represents our first major project outside the UK, and the first time Powerhouse has been party to the special purpose vehicle that will develop and construct the facility."
Initially, Powerhouse will pay HUI a non-refundable £400,000 in cash along with a loan of £600,000 in recognition of HUI's contribution to date to the Lanespark Project with development costs subsequently split 50:50.
"Lanespark, which encompasses a suitable site in an EU Just Transition Fund region, would provide potential access to an investment-grade plastic feedstock supplier and the potential to agree on offtake for the facility's anticipated hydrogen and syngas outputs," said the statement.
Definite contracts are still to be signed, while the development also needs the site owner to agree to an equity stake for the joint venture.
Powerhouse added that its exclusive deal with HUI’s UK arm will also end if Lanespark goes ahead, leaving it free to enter developments with other parties.
Paul Drennan-Durose, chief executive, said: "Powerhouse Energy must create a quality of choice on projects. In this early stage of commercialisation there is a need to consider the unusual, and to have a more flexible business model.”