Powerhouse Energy Group shares fell 2.9% to 1.7p in late morning trading on Tuesday, after the company announced its proposed joint venture with Hydrogen Utopia International.
The project is set to see the firms develop a non-recyclable waste plastic to hydrogen facility in Konin, Poland.
Powerhouse Energy confirmed the two companies had agreed in principle to establish a joint venture vehicle, equally owned by each group.
Both groups will be contributing to development costs for the Konin project on an equal basis.
The agreed heads of terms included a stipulation that Powerhouse Energy not make any entry payments to Hydrogen Utopia, however Hydrogen Utopia will be allowed to recover its costs to date up to €250,000 at the close of the project, with a €250,000 premium.
Powerhouse Energy announced a similar agreement with Hydrogen Utopia on 13 July 2022 at Lanespark, Co Tipperary in Ireland. In addition, it announced it would be taking a 50% shareholding in Protos Plastics to Hydrogen No 1 on 15 August 2022.
“This formalises PHE’s position in the Konin project and brings to an end speculation within the market on what PHE’s role will be. 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,” said Powerhouse Energy interim chairman Keith Riley.
“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.”