Powerhouse Enrgy Grp Loan Facility to Protos Project SPV
12 Maggio 2021 - 8:00AM
UK Regulatory
TIDMPHE
Powerhouse Energy Group plc
("Powerhouse" or the "Company")
12th May 2021
Loan Facility to Protos Project SPV
Powerhouse Energy Group plc (AIM: PHE), the sustainable hydrogen company
pioneering hydrogen production from waste plastic, is pleased to announce that
the Company has agreed to enter into a loan agreement to provide up to £3.8
million to Protos Plastics to Hydrogen No. 1 Limited, the Peel NRE Special
Purpose Vehicle (the "SPV"). The loan is to progress the development of the
Protos plant, the first proposed commercial application of Powerhouse's DMG
waste plastic to hydrogen technology, which it is expected will be licensed to
the Peel NRE SPV. Peel NRE is a group company of the Peel Group.
Under the agreement Powerhouse has agreed to provide a loan facility of up to £
3.8 million. This facility is for the specific purpose of securing long lead
time items and project design services in respect of the Protos project, prior
to securing long-term debt funding arrangements to be facilitated via Peel NRE.
The facility is available for 6 months and drawdown will be in agreement with
the budgeted Protos development cash flow. It will be repaid following the
final investment decision or on the second anniversary of the loan, whichever
is earlier. The loan is set at Bank of England base rate plus 2% per annum and
will accrue daily. Any drawn down amount is to be secured on all of the issued
share capital of the SPV, its land lease, the design and any procured assets.
The loan follows the sanctioning of the project by the Powerhouse Board. It
will supplement the existing Peel NRE project investment which is to be
transferred into the SPV. The project will use the proceeds of the loan to
commit to procurement of the long lead items including the Thermal Conversion
Chamber, the syngas process module, the compression and power generation
modules. The procurement packages have followed the Peel commercial review of
the facility and the design has been refined to optimise the supply, mix and
use of waste material feedstocks for the site in addition to the provision of
options for hydrogen export.
Completion of the Protos plant remains the Company's top priority. The Board
believes the provision of this loan will protect the project development
schedule and facilitate the finalisation of the SPV agreements.
Tim Yeo, Executive Chairman, said:
"Powerhouse is now putting its money where its mouth is. The joint Peel NRE/
Powerhouse technical delivery team have done a fantastic job in aligning the
chosen suppliers to meet the specification for DMG.
"We are confident that this loan facility has the great benefit of protecting
the delivery schedule for Protos. The plant is modular and the majority of our
project fabrication activities are covered in these contracts."
Myles Kitcher, Non-Executive Director of Powerhouse and director of Peel NRE,
said:
"I would like to congratulate the team in aligning the design to meet our
operational needs. The commitment made by Powerhouse supports the Peel NRE
expenditure and will cover the project planned budget commitments with
protections until all financial agreements are in place. Significant progress
has been made across all aspects of the project since the beginning of the
year, including site preparation, and we anticipate full construction to
commence over the coming months."
-ENDS-
For more information, contact:
Powerhouse Energy Group plc Tel: +44 (0) 203 368
6399
Tim Yeo, Executive Chairman
WH Ireland Limited (Nominated Adviser) Tel: +44 (0) 207 220
1666
James Joyce/ Lydia Zychowska
Turner Pope Investments (TPI) Ltd Tel: +44 (0) 203 657
(Joint Broker) 0050
Andrew Thacker/James Pope
SisterSmith PR (media enquiries)
Becca Smith Mob: +44 (0) 7766522305
Notes for editors:
About Powerhouse Energy Group plc
Powerhouse, the sustainable hydrogen company, 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. Powerhouse's
technology is one of the world's first proven, distributed, modular, hydrogen
from waste (HfW) process.
The Powerhouse DMG® process can generate up to 2 tonnes of road-fuel quality
hydrogen and more than 58MWh of exportable electricity per day.
Powerhouse's process produces low levels of safe residues and requires a small
operating footprint, making it suitable for deployment at enterprise and
community level. As announced on 11th February 2020 under its Supplemental
Agreement with Peel Environmental, Powerhouse will receive an annual license
fee of GBP500,000 in respect of each project which is commissioned.
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
END
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