Powerhouse enters binding agreement with Hydrogen Utopia

The AIM-traded firm said HUI’s corporate mission is to create a project pipeline for the DMG technology in those regions, through seeking funding from and partnering with states, regional authorities and the private sector in targeted regions to facilitate its deployment.

It said the exclusivity agreement followed the agreement of non-legally binding heads of terms with HUI in Poland, announced on 12 November 2020, and Greece and Hungary, announced on 10 May 2021, and the payment by HUI to Powerhouse of deposits totalling €0.13m.

Under the agreement, HUI would pay Powerhouse a further €0.33m by the end of 2021, when the formal intellectual property licence for the DMG technology was expected to have been granted to HUI, with a further €0.3m to be paid 12 months later.

A royalty fee would be agreed as part of the expected licence agreement.

In addition, Powerhouse said it would continue to receive a licence fee for any DMG plant which becomes operational in any location in the world.

As a result, the company’s worldwide rights to ongoing licensing fees for the DMG technology were unaffected by the exclusivity agreement.

“Powerhouse is pleased to sign this binding exclusivity agreement with HUI which is a champion of our technology, seeking to drive its rollout across Poland, Greece and Hungary,” said non-executive chairman James Greenstreet.

“This builds on our announcement of 12 November 2020 and is part of our long-term vision for DMG technology to be deployed internationally, helping the world transition to clean energy whilst providing a solution to end-of-life plastic.”

At 1144 BST, shares in Powerhouse Energy Group were up 3.17% at 3.9p.