Energy company Powerhouse Group Now Exercises Complete Control Over Protos' Hydrogen Using Plastic Waste endeavor
In a strategic move aimed at capital efficiency and viable initiatives, Powerhouse Energy Group has terminated the Protos plastics-to-hydrogen project. The company, which specialises in converting non-recyclable waste into low carbon energy, is now focusing on three main pillars: technology commercialization, engineering services, and project development.
Following the termination, Powerhouse Energy is concentrating its efforts on projects such as NH2 and Ballymena, which they hope will serve as proof-of-concept for a scalable business model. They also emphasise licensing their core technology and independently monetizing engineering expertise through subsidiary operations. This more disciplined resource allocation approach aims to build long-term value while managing execution and regulatory risks effectively.
The acquisition of the Protos Plastics to Hydrogen No 1 Ltd from Peel NRE Ltd for a nominal payment of £1 was completed by Powerhouse Energy Group. The company has assumed full ownership and control of the project, as confirmed by Keith Riley, Acting Chief Executive Officer of Powerhouse Energy Group.
The Option Agreement between Peel and the Special Purpose Vehicle (SPV) enabling the SPV to lease the Site will remain in place, with annual rent reviews limited between 2% and 5%. However, the Peel option to extend its exclusivity in respect of its deployment of Powerhouse Energy Group's technology will terminate.
A variation of the IP Licence Agreement signed on 30 June 2021 with Peel has been agreed, confining the beneficiary of the licence to the SPV. The acquisition brings an end to previous discussions regarding Powerhouse Energy Group taking a 50% shareholding in the SPV.
Two additional fees will be payable by Powerhouse Energy Group to Peel on entering into the lease: £400,000 for the provision of the gas easement and £532,000 for the power export facility. The Option has been extended to 28 March 2024, with the ability to extend for a further year on payment of an extension fee of £150,000.
Until its financial reporting year ended 31 March 2022, the SPV was dormant. Financial results for 2022/23 will be reported in due course. Powerhouse Energy Group looks forward to continuing its excellent working relationship with Peel as landlords of the site.
Further updates on the Protos project are expected to be provided in due course. Powerhouse Energy Group expresses its gratitude to the Peel team for their work in putting the planning permission and basic infrastructure in place.
This development marks a significant milestone for Powerhouse Energy Group, as the company will now be solely responsible for the development of the project at Protos. The company is now focusing on seeking commercial agreements for the offtakes (electricity, heat, hydrogen, or other products) before seeking finance for the construction.
Date: May 2, 2023
[1] Powerhouse Energy Group Press Release, May 2, 2023 [3] Peel Environmental Press Release, April 28, 2023
- Although the Protos plastics-to-hydrogen project has been terminated, Powerhouse Energy Group is actively seeking commercial agreements for the offtakes, aiming to monetize the project and commercialize their renewable-energy technology.
- In a new strategic direction, Powerhouse Energy Group is now focusing on obtaining finance for the construction of renewable-energy projects, such as NH2 and Ballymena, while also pursuing licensing opportunities and engineering services in the wider industry.
