Supplemental agreement with Peel Environmental
PowerHouse Energy Group plc
("PowerHouse" or the "Company")
11th February 2020
Peel Environmental Supplemental Agreement to accelerate development of Protos Energy Park
PowerHouse Energy Group plc (AIM: PHE), the UK technology company pioneering hydrogen production from waste plastic, is pleased to announce that it has entered into a supplemental collaboration agreement with Peel Environmental (part of Peel L&P) (“Peelâ€) which aims to accelerate the development of the Protos Energy Park and four further DMG® sites in the UK.
Powerhouse has entered into an agreement (the “Supplemental Agreementâ€) with Peel, Waste2Tricity Limited (“W2Tâ€) and Waste2Tricicty (Protos) Limited following the collaboration contract announced on 12 August 2019 (the “Collaboration Contractâ€).
The Supplemental Agreement allows Peel to act as the developer of Protos and four further DMG® sites in the UK pending finalising the proposed acquisition of W2T by PowerHouse, with W2T relinquishing its entitlement to UK exclusivity for the technology and development rights of PowerHouse’s DMG® technology.
The Supplemental Agreement is intended to prevent any delays in the development of Protos and four further DMG® sites in the UK which have been identified as the most likely to be developed first. The remaining six sites under the Collaboration Contract remain unaffected by the Supplemental Agreement, however the technology and development rights will all revert to PowerHouse on completion of the proposed acquisition of W2T.
The Supplemental Agreement contains arrangements for the monetisation of the DMG® Technology at Protos, which will include a £500,000 annual license fee payable to PowerHouse per project upon each project being commissioned. Peel has also agreed to pay PowerHouse £100,000 in historic back costs. The PowerHouse license fees will include a 60:40 fee split with W2T pending completion of the proposed PowerHouse acquisition of W2T. In this context, due diligence and negotiations for the acquisition of W2T are proceeding. An announcement will be made and a circular convening a General Meeting to approve the necessary resolutions to effect the acquisition is expected to be posted to shareholders as soon as the arrangements are finalised.
David Ryan, CEO of PowerHouse, said:
“We very much welcome Peel Environmental taking on the role of developer for the Protos site. Their well reputed skills and experience of successfully developing major infrastructure projects will now be fully brought to bear on the roll-out of the first commercial DMG® plastic to hydrogen facility at Protos and at future sites in the UK.
The current trialling of the proposed plastic waste stream in the process demonstrator is continuing, with excellent gas production results for the output levels expected. This has facilitated our license fee negotiations resulting in this Supplemental Agreement.â€
Tim Yeo, Chair of W2T, commented:
“I am pleased to see the momentum continuing as the details of the acquisition are being finalised. Peel’s Plastic Parks and the PowerHouse exclusive technology will be vital to help the UK tackle its unrecyclable waste plastic problem, so the acceleration of this activity is very much welcomedâ€
Myles Kitcher, Managing Director of Peel, commented:
“Hydrogen is set to play a major role in the UK’s clean growth strategy and we’re leading the way in the North West. This agreement cements our relationship with PowerHouse and our support for their pioneering plastic to hydrogen technology. Working together, we will now be commercialising the technology at our Protos development in Cheshire before looking at other sites across the country where it could be rolled out.
“This is all part of Peel L&P’s contribution to the UK’s journey to zero carbon, where we can not only find a more sustainable way to treat plastic waste but also create a local source of low carbon transport fuel which will help tackle air quality issues in our communities.
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 (Joint 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 Waste2Tricity Limited
Waste2Tricity is a structured solutions provider to the energy-from-waste (EfW) sector, an industry supplying increasing amounts of electricity using feedstock diverted from landfill.
Waste2Tricity works with clients and partners to develop, fund and support EfW deployment projects that use proven technology, are profitable and progressive; projects that currently use high temperature gasification and either steam cycle or internal combustion engines/gas turbines (ICEs/GTs) to efficiently convert waste to energy.
For more information see www.waste2tricity.com
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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