Hydrogen Utopia International and Powerhouse Energy have reached an agreement on payment and terms for the collaborative development of the Longford Project.
In order to construct a waste plastic to hydrogen plant, Hydrogen Utopia has been given the option to secure a 25-year lease on a greenfield site at Fisherstown Energy Park in County Longford, Ireland.
According to the HoTs, HUI and PHE have agreed to use a joint venture vehicle for the Longford Project that will be owned equally by both companies, be established in Ireland, and pay development costs on a 50:50 basis.
In appreciation for HUI’s assistance in locating the Longford Project, obtaining the Option, and advancing the project, PHE has agreed to pay HUI a non-refundable payment of up to £400,000 in cash. This cash payment consists of two payments: a first payment of £100,000 upon signing the HoTs and a second payment of £100,000 upon completion of the project documentation between HUI and PHE, which is anticipated to take place within the next three months and primarily consists of a development agreement and a shareholder agreement. PHE has agreed to pay HUI an additional £200,000 cash payment after the Longford Project on the Longford Site receives planning approval.
It is projected that Longford, a county in the Irish Midlands, will be among the main recipients of the EU Just Transition Fund in Ireland. The Territorial Fair Transition Plan for Ireland and its associated program, which will invest €169 million in the Irish Midlands from 2022 to 2027, received Irish Government approval on November 29, 2022. The European Commission approved the Irish Government proposal on December 15, 2022.
The Longford Project may be able to utilize the on-site waste water treatment facilities that were formerly used by a very big denim manufacturing operation at Fisherstown Energy Park, which has its own electrical grid connection, an electrical substation, and the potential to do so. The M4 and M6 highways, which provide access to Dublin and Galway, are close by and within reasonable driving distance of Fisherstown Energy Park.
The Option gives HUI’s fully owned Irish subsidiary the opportunity to purchase a 25-year lease on the Longford Site for a period of up to three years. Over the first 12 months of the Option, HUI paid an option premium to the freeholder; the Option then provided for additional quarterly payments for the remainder of the Option period.
