Correction - DMG® Development Option Agreement...
PowerHouse Energy Group plc
("PowerHouse" or the "Company")
9th March 2020
Amendment: DMG® Development UK Exclusivity Option Agreement with Peel
The following amendment to paragraph six has been made to the 'DMG® Development UK Exclusivity Option Agreement with Peel’ announcement released on 9 March 2020 at 07:00.
The amendment is to clarify that if Peel exercises its option, PowerHouse will be entitled to an annual licence fee of approximately £500,000 for each DMG® plant that Peel develops, which will become payable annually when each unit becomes operational, in addition to the one-off fee of £500,000 for exclusivity. The annual licence fee of £500,00 was also referred to in the announcement of 11 February 2020, ‘Supplemental agreement with Peel Environmental’.
All other details remain unchanged. The full amended text announcement is shown below.
DMG® Development UK Exclusivity Option Agreement with Peel
PowerHouse Energy Group plc (AIM: PHE), the UK technology company pioneering hydrogen production from waste plastic, is pleased to announce it has signed an option to enter into an exclusive agreement for the development of DMG® Technology in the UK (the “UK Exclusivity Option Agreement”) with Peel Environmental (part of Peel L&P) (“Peel”).
Under the UK Exclusivity Option Agreement, Peel has, if it exercises the option, committed to lead the engagement with all potential end customers for UK based DMG® plants such as councils and waste management companies and will facilitate or help facilitate the development of those DMG® plants in accordance with the customers’ commercial requirements.
The UK Exclusivity Option Agreement is conditional upon and requires the completion of the proposed PowerHouse acquisition of Waste2Tricity Limited, which is progressing but has yet to be finalised for logistical reasons, including the finalisation of a shareholder circular in advance of a general meeting.
Peel are well positioned in the UK Energy from Waste sector to deliver Powerhouse’s ambitious plans for quick and effective roll out of DMG® technology thoughout the UK.
Peel not only bring their land bank as potential DMG® plant sites, but also their experience of working within communities and with other businesses working with end customers’ sites and acquiring new sites for DMG® units.
PowerHouse will, if Peel exercises the option, receive £500,000 as a one-off fee for granting Peel exclusive rights to develop the DMG® Technology in the UK. On an ongoing basis, PowerHouse will then be entitled to an annual licence fee of approximately £500,000 for each DMG® plant that Peel develops, which will become payable annually when each unit becomes operational. PowerHouse may also earn additional fees from technical engineering services and maintenance contracts associated with each project if contracted by Peel to do so.
PowerHouse intends to negotitate similar exclusivity arrangements with development partners on a country-by-country basis as part of its strategy to enable rollout of its DMG® technology in the most effective and speedy manner in each region.
David Ryan, CEO of PowerHouse Energy, said:
“We have chosen to work with Peel largely based on the results of the very positive engagement we have had with them to date combined with their well suited strategic fit as a development partner for delivering an effective and sustained roll out of our DMG ® technology across the UK.
“They have the resource, reputation and experience as well as a shared vision for providing commercially sound solutions to meet the increasing demand for energy from waste produced in an environmenentally responsible manner. We very much look forward to having a highly productive and mutually profitable working relationship with Peel.”
Myles Kitcher of Peel commented:
“We have a huge problem with plastic waste in the UK and we desperately need new infrastructure to prevent it ending up in landfill or exported overseas. With the first plant at Protos recently securing planning consent this agreement is the next step in enabling this ground breaking technology to be rolled out across the UK. It also fits with our ambitions to deliver low carbon energy sources, with the production of hydrogen which can be used as a clean fuel for transport.
“We are now looking at other sites where the technology can be deployed, including on Peel owned land, as part of our wider plans to develop a complete solution for plastic waste. We are looking forward to working in partnership with PowerHouse Energy to help local authorities tackle their waste plastics in a more sustainable and cost effective way and deliver on the UK’s net zero ambitions.”
For more information, contact:
| PowerHouse Energy Group plc | Tel: +44 (0) 203 368 6399 |
| David Ryan, Chief Executive Officer | |
| WH Ireland Limited (Nominated Adviser) | Tel: +44 (0) 207 220 1666 |
| James Joyce / Lydia Zychowska | |
| Turner Pope Investments Ltd (Broker) | Tel: +44 (0) 203 657 0050 |
| Andrew Thacker / Zoe Alexander | |
| Ikon Associates (Media enquiries) | Tel: +44 (0) 1483 271291 |
| Adrian Shaw | Mob: +44 (0) 7979 900733 |
About PowerHouse Energy Group plc
PowerHouse has developed a proprietary process technology - DMG® - which can utilise waste plastic, end-of-life-tyres, and other waste streams to efficiently and economically convert them into syngas from which valuable products such as chemical precursors, hydrogen, electricity and other industrial products may be derived. The PowerHouse technology is one of the world’s first proven, modular, hydrogen from waste (HfW) process.
The PowerHouse DMG® process can generate up to 2 tonnes of road-fuel quality H2, and more than 58MWh of exportable electricity per day.
The PowerHouse process produces low levels of safe residues and requires a small operating footprint, making it suitable for deployment at enterprise and community level.
PowerHouse is quoted on the London Stock Exchange's AIM Market under the ticker: PHE, and is incorporated in the United Kingdom.
For more information see www.powerhouseenergy.net
About Peel L&P Environmental and Protos
Peel Environmental, part of Peel L&P, owns and develops waste infrastructure projects. It has achieved consent for a range of energy infrastructure schemes including a 49MW Energy from Waste plant at Protos in Cheshire, 21MW Energy from Waste plant and 250,000tpa AD and MRF in Glasgow; and a 20MW Energy Centre at Houghton Main, Barnsley. Peel works with investors, waste management companies, technology providers and contractors to secure a deliverable business model for each project. www.peelenvironmental.co.uk
Peel Environmental brought forward and consented the Protos development, previously known as Ince Resource Recovery Park. The 54ha (134 acres) development site has full outline planning consent and part detailed planning consent for general manufacturing and distribution uses (B1, B2 & B8), as well as a biomass facility and an Energy from Waste facility.
www.protos.co.uk @ThisIsProtos
Protos sits within the Energy Innovation District (EID) which brings together energy users, network owners, innovators and partners working alongside Cheshire & Warrington LEP, Cheshire West and Chester Council and the University of Chester. With the objective of driving down the cost of clean energy the EID is an opportunity to deliver a new decarbonised energy system for the North West of England, meeting the Government’s Clean Growth agenda while boosting economic growth and investment.
www.energyinnovationdistrict.com
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