(Sharecast News) - President Energy announced a further significant new development at its hydrogen and ammonia production subsidiary Atome on Friday.
The AIM-traded firm said Atome had acquired a 75% interest in a northern Europe-based green hydrogen and ammonia company, for nominal share value.
It said the acquisition reflected Atome's strategic desire of being a player in the European market for the supply of green hydrogen and ammonia, adding that while the acquired company had no tangible assets at present, it had an "experienced" local management with a "reputable" chief executive in the country where it was located.
Additionally, while it was yet to start production, the acquisition was currently in discussions with the respective national power company for power supply, as well as a "recognised world leader" in original equipment manufacturing, for the production of green hydrogen and ammonia.
The acquired company was reportedly optimistic that an appropriate power purchase agreement could be satisfactorily concluded to progress a necessary pilot programme for hydrogen production in the relevant country projected during, at, or around end of 2023 with, subject to that success, a targeted estimated second phase industrial production of 80,000 metric tonnes of ammonia production per year around the middle of the decade.
Along with the Americas project, announced on 1 July, Atome now had two separate spheres of interest which, if they both progressed to an industrial production stage, had the potential to generate more than 250,000 metric tonnes of green ammonia per year by the end of the decade.
Atome would be responsible for providing a line of credit of up to $20m to fund the pilot programme, which was currently projected to cost $12m and, upon success, it would lead the mobilisation of funding for the industrial production phase, all being subject to a satisfactory power purchase agreement and equipment supply agreement being in place.
"The announcement today further reinforces the determination of President's subsidiary, Atome, to fulfil its strategic objective to geographically expand its green hydrogen and ammonia portfolio to the important European market ahead of the targeted listing of Atome's shares on the London Stock Exchange later in the year," said chairman Peter Levine.
"Although at an early stage, discussions are underway in relation to both the purchasing of power and the sourcing of relevant hardware.
"This latest development underlines the present and potential future material shareholder value in Atome, which we expect the projected forthcoming flotation to realise and unlock for President's own shareholders, as well as providing those coming in on the listing with significant upside in a sector of increasing importance in the drive towards a carbon neutral future."
At 1526 BST, shares in President Energy were up 5.27% at 2.32p.
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