Powerhouse Energy Group (PHE) said it agreed heads of terms with Hydrogen Utopia (HUI) over the joint development of a waste plastic to hydrogen plant at Konin in Poland.
"This formalises PHE's position in the Konin project and brings an end to speculation within the market on what PHE's role will be," Keith Riley, PHE’s interim chairman, said.
“We now have the task of agreeing the detailed documents for all three projects at Protos, Lanespark and Konin, which will conclude PHE's recently adopted policy of holding at least some level of control of the projects on which it embarks
At Konin, the two companies have agreed, in principle, to establish a 50/50 joint venture vehicle with the costs split.
Once full documentation is signed, PHE's proprietary technology will be used to generate hydrogen from non-recyclable waste plastics.
PHE will not make any entry payments but HUI will be allowed to recover costs to date, fixed at €250,000 with a €250,000 premium, at the financial close of the project.
The intent is for the ongoing development costs of both parties to be capitalised at financial close and recovered through an appropriate mechanism to be agreed, said the statement.
PHE said the arrangement is similar to the JV with HUI at Lanespark, Co Tipperary, Ireland and at Protos Plastics.
Riley added: "I am well aware that this increases our cash flow, so an important aspect of the project controls we are implementing is careful cash management and expenditure control which we have built into the management forecasts.
“HUI has made a fast start in Poland and announced that it had signed a Letter of Intent with the City of Konin on 3 February 2021.
“Events in Eastern Europe since, however, inevitably mean that this project is likely to fall behind. In consequence, I am confident that the three developments can be phased."