(Alliance News) - Powerhouse Energy Group PLC shares fell on Monday, after it said it has decided to defer further progress towards committing to the Longford non-recyclable waste plastic to hydrogen facility in Ireland.
Powerhouse Energy is a Bingley, England-based non-recyclable waste-to-energy conversion firm. Its shares were down 17% to 0.31 pence each in London on Monday around midday.
Hydrogen Utopia International PLC is a London-based operator of facilities that turn non-recyclable mixed waste plastic into hydrogen and other carbon-free fuels, new materials, or distributed renewable heat. Its shares were up 5.9% to 4.50 pence each.
Powerhouse said it has decided to defer further progress towards committing to the Longford Project while it takes stock of the final position in its negotiations with Hydrogen Utopia International.
Powerhouse agree agreed a head of terms with HUI in March over the proposed joint development of the Longford project.
Hydrogen Utopia International noted the update, too. It said that since March, it has signed an option to acquire a substantial minority stake in a medical cannabis cultivator in Macedonia expected to generate substantial cashflows.
"As a result, HUI is confident that, if the option is exercised, it can fund the development of pipeline projects including the Longford Project without a joint venture partner and without a fundraise through an issue of shares which would dilute existing shareholders," it explained.
Meanwhile, Powerhouse Energy said it has a number of potential projects in its pipeline and it needs to prioritise and assess the impact of each on its existing cash resources. As a result, the board has decided its currently proposed capital contributions for the project are not in its best interests.
Non-Executive Chair Tony Garner-Hillman said: "We have had to take a difficult decision in the interests of the long-term position as we continue to build a robust company. Our ongoing review of the Longford project since the heads of terms were signed in March, along with developments in other areas of our business, have all had to be taken into account.
"This has taken us to the inescapable conclusion that, through today's eyes, the best interests of PHE dictate that now is not the right time to commit to the Longford project and to making significant capital contributions. We remain hopeful that position will change."
By Sophie Rose, Alliance News reporter
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Powerhouse Ener (PHE)
Hydrogen Utopia (HUI)