Ireland – For the joint development of a site at Lanespark in Ireland, which it anticipates will lead to HUI’s first operational full-scale waste plastic to hydrogen facility in Europe, Hydrogen Utopia International and Powerhouse Energy Group have reached heads of terms (HoTs) agreements.
HUI and PHE have agreed to create a joint venture vehicle owned equally by each company with development costs being split 50:50, subject to obtaining an acceptable title to the proposed site and completing pertinent project documentation.
To acknowledge HUI’s contribution to the Lanespark Project through its technological approach to the waste plastics to hydrogen process, identification of the site and its potential, and negotiation of a deal with the current site owners, PHE has agreed to pay HUI a non-returnable payment of £400,000 in cash and advance to HUI a loan of £600,000. The Lanespark Project is expected to bring a site that can take advantage of local, national, or EU grant funding, or a combination of them, as well as a site that has a significant potential for local feedstock supply and offtake agreements with potential tier 1 customers.
On a portion of the site that is currently leased to Trifol Resources Limited, the proposed waste plastic to hydrogen plant will be constructed (TRL). PHE’s involvement in the Lanespark Project, the payment, and the loan to HUI mentioned above depend on TRL and the freeholder granting the JV an acceptable title to the site, which will allow the Lanespark Project to be financed. With the necessary parties, HUI is in advanced discussions to fulfill the title condition.
Cooperation
Upon satisfaction of the Title Condition and the completion of the project documentation, which will include among other documents, a development agreement and a shareholder agreement, the loan that PHE will provide to HUI will be available for drawdown in whole or in part. The loan would have a term of up to two years, and after one or two years, full redemption would be possible through a bullet repayment of £660,000 or £750,000, respectively, reflecting rolled-up interest and capital in each case. Through a charge over its shares in the JV, HUI would give PHE security for the loan.
The parties have decided that the existing Exclusivity Agreement between PHE and HUI’s UK operating subsidiary and the existing Collaboration Agreement between the same parties will each be terminated mutually without any further obligation on either party in recognition of the fact that the proposed joint venture will supersede any prior agreements between HUI and PHE. Along with their cooperation on the Lanespark Project, HUI and PHE will think about working together on additional projects in the future if and when it makes sense, though neither party is required to do so.
