MEN.L Regulatory News (MEN)

18 December 2023

MOLECULAR ENERGIES PLC

("MEN" or the "Company")

Significant progress within Green House Capital Group plc

Technological breakthrough on Dual Fuel Hydrogen Mobility

Green House set for IPO

Molecular Energies (AIM: MEN), is pleased to announce the achievement of a significant technological and commercial breakthrough at Dual Fuel Limited ("DFL"), a wholly owned subsidiary of the Company's 75% owned alternative energy development division, Green House Capital Group plc ("Green House").

Highlights

· Initial trials on DFL's innovative and proprietary hydrogen injection technology indicate that a minimum of approximately 20% of hydrogen can safely be introduced into a heavy-duty diesel vehicle engine resulting in a proportionate reduction in the amount of emissions and a significant extension to driving range.

· The 20% displacement represents the baseline for DFL's technology and establishes its credentials as a compelling commercial solution for heavy-duty diesel fleet operators worldwide with first customers in launch country Paraguay already identified.

· DFL will now move to live testing on a rolling-road expected to take place in Q1 2024.

· The DFL solution avoids need for expensive hydrogen only fuelled-vehicles and hydrogen refuelling networks, major inhibitors to rolling out hydrogen mobility.

Dual Fuel Technological Breakthrough

In February 2023, DFL contracted Helical Technology, an engine and vehicle testing specialist, to conduct trials on a heavy-duty vehicle engine using DFL's innovative and proprietary dual-fuel technology, developed in collaboration with DFL's contractor G-Volution Limited. The purpose of these trials was to identify the optimal conditions for introducing hydrogen into a diesel-powered engine.

The testing protocol entails a thorough evaluation of the engine and test cells followed by running of the engine using diesel alone and then progressively introducing hydrogen until the fuel entering the engine becomes disproportionate to its power output.

The results of these initial trials confirm that approximately 20% of hydrogen can be safely introduced into a heavy-duty diesel vehicle engine resulting in a proportionate reduction in the amount of emissions. The results also indicate that DFL's solution will significantly extend the range of heavy-goods vehicles.

DFL will now undertake a further test of its technological solution in a live rolling-road environment in Q1 2024 which is intended to complete the calibration of the software behind the system.

Upon successful completion of the rolling-road tests DFL expects to deliver its first retrofit solutions to customers in its lead country Paraguay in Q3 2024 with first customers already identified and the Government having a supportive and defined hydrogen mobility plan. DFL's offering will be supported by the supply of 100% green hydrogen generated by G-Mobility its sister company within Green House.

Paraguay is an economically and politically stable landlocked country with no active railway network which relies on a fleet of approximately 75,000 long range heavy diesel trucks and 3,000 barges for its infrastructure logistics. MEN, through the network created by its current and historic operations in Paraguay as well as its sister company Atome Energy, is particularly well positioned to penetrate this market.

DFL's cost-effective retrofit technology is positioned to provide fleet operators with an affordable and transitional decarbonisation solution which will expand the range of their vehicles without the need for an extensive hydrogen refueling network the latter being a material and expensive negative factor in other hydrogen mobility solutions.

The results of this initial trial demonstrate that the DFL technology is capable of substantial displacement of diesel within a heavy goods engine which will ultimately lead to a compelling commercial opportunity for its customers with the offering intended to roll out worldwide after using Paraguay as a lead country.

Green House IPO

The Green House AIM IPO is expected in Q1 2024.

Green House has made strong progress in preparations for its AIM IPO with all primary workstreams set to complete in the near term. Green House is encouraged by feedback received from investors seen to date which confirms the view that Green House can build on its significant progress with market support as an independent entity.

Christopher Raggett, CEO of Green House, commented:

"Operations within Green House continue to progress at pace and the latest technological breakthrough of Dual Fuel is particularly encouraging as we seek to bring this solution to a fertile target market very quickly.

Dual Fuel has a significant advantage over other hydrogen mobility solutions in that it can use existing vehicles at a modest retrofit cost, avoid having an expensive hydrogen refueling network whilst at the same time importantly reduce carbon emissions as a transition to Net Zero.

With this progress we look forward to the successful spin out and admission to AIM of Green House in 2024."

For more information, please visit www.molecularenergiesplc.com or contact:

Notes to Editors

Molecular Energies PLC is an AIM listed company at the forefront of energy development and has interests across the energy spectrum, from an oil and gas project to the green and alternative energy sector.

The Company currently has an oil exploration asset in Paraguay. The Company has two separate subdivisions which are focused on early-stage opportunities in the green and/or alternative energy sub-sector.

Activities in the green and alternative energy space are being carried out direct through Molecular and under the Green House Capital brand and through AIM listed Atome Energy PLC, a green hydrogen, ammonia, and fertiliser company operating in Paraguay, Costa Rica and Iceland, in which Molecular currently has 20.5%.

With a strong strategic and institutional base of support, no third-party financial debt and a Chairman whose interests as the largest shareholder are aligned to those of its shareholders, Molecular gives UK investors access to an energy growth story combined with world class standards of corporate governance, environmental and social responsibility.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR"). The person who arranged for the release of this announcement on behalf of the Company was Robert Shepherd, Finance Director.

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