PowerHouse Energy Group plc (LON:PHE), the UK technology company pioneering hydrogen production from waste plastic, has today announced it has signed an option to enter into an exclusive agreement for the development of DMG® Technology in the UK with Peel Environmental.
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 a licence fee of approximately £500,000 for each DMG® plant that Peel develops, which will become payable when a 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.”
