Supplemental agreement with Peel Environmental

About this update from Powerhouse Energy Group Plc

[{"type":"text","content":"\n \nPowerHouse Energy Group plc\n\n(\"PowerHouse\" or the \"Company\")\n\n11th February 2020\n\nPeel Environmental Supplemental Agreement to accelerate development of Protos Energy Park\n\nPowerHouse Energy Group plc (AIM: PHE), the UK technology company pioneering hydrogen production from waste plastic, is pleased to announce that it has entered into a supplemental collaboration agreement with Peel Environmental (part of Peel L&P) (“Peel”) which aims to accelerate the development of the Protos Energy Park and four further DMG® sites in the UK.\n\nPowerhouse has entered into an agreement (the “Supplemental Agreement”) with Peel, Waste2Tricity Limited (“W2T”) and Waste2Tricicty (Protos) Limited following the collaboration contract announced on 12 August 2019 (the “Collaboration Contract”).\n\nThe Supplemental Agreement allows Peel to act as the developer of Protos and four further DMG® sites in the UK pending finalising the proposed acquisition of W2T by PowerHouse, with W2T relinquishing its entitlement to UK exclusivity for the technology and development rights of PowerHouse’s DMG® technology.\n\nThe Supplemental Agreement is intended to prevent any delays in the development of Protos and four further DMG® sites in the UK which have been identified as the most likely to be developed first.  The remaining six sites under the Collaboration Contract remain unaffected by the Supplemental Agreement, however the technology and development rights will all revert to PowerHouse on completion of the proposed acquisition of W2T.\n\nThe Supplemental Agreement contains arrangements for the monetisation of the DMG® Technology at Protos, which will include a £500,000 annual license fee payable to PowerHouse per project upon each project being commissioned. Peel has also agreed to pay PowerHouse £100,000 in historic back costs.  The PowerHouse license fees will include a 60:40 fee split with W2T pending completion of the proposed PowerHouse acquisition of W2T.  In this context, due diligence and negotiations for the acquisition of W2T are proceeding.  An announcement will be made and a circular convening a General Meeting to approve the necessary resolutions to effect the acquisition is expected to be posted to shareholders as soon as the arrangements are finalised.\n\nDavid Ryan, CEO of PowerH...

More updates from Powerhouse Energy Group Plc