Powerhouse signs loan agreement with Protos ad hoc vehicle
Technology company for transforming plastic waste into hydrogen Power plant has agreed to enter into a loan deal to provide up to £ 3.8million to ‘Protos Plastics to Hydrogen No. 1 Limited, Peel NRE’s special purpose vehicle, it said on Wednesday.
The AIM-listed company said the loan was intended to advance development of the Protos plant, which would be the first proposed commercial application of its technology for transforming plastic waste into hydrogen “DMG”, licensed to the vehicle. Special Purpose Peel NRE.
Peel NRE is a member of the infrastructure, transportation and real estate investment company, The Peel Group.
Under the deal, Powerhouse would provide a loan facility of up to £ 3.8million to secure long-term items and project design services for the Protos project, before entering into debt financing arrangements. long term via Peel NRE.
The facility would be available for six months, with the drawdown to be in accordance with Protos’ budgeted development cash flow.
It would be repaid after the final investment decision or on the second anniversary of the loan, whichever comes first.
The loan has been set at the Bank of England base rate plus 2% per annum and will bear interest daily.
Any amount withdrawn would be guaranteed on the entire issued share capital of the special purpose vehicle, its ground lease, design and all assets acquired.
The loan followed the approval of the project by the Powerhouse board of directors and would complement the existing investment in the Peel NRE project which would be transferred to the special purpose vehicle.
Powerhouse said the project will use the proceeds from the loan to engage in the purchase of items, including the thermal conversion chamber, syngas processing module, and compression and power generation modules.
The procurement packages followed Peel’s business review of the facility, with the design refined to optimize the sourcing, blending and use of waste feedstocks for the site in addition to providing options. for the export of hydrogen.
Completion of the Protos plant remained Powerhouse’s top priority, the board said, adding that it believed the granting of the loan would protect the project’s development schedule and facilitate the finalization of the contracts. special purpose vehicles.
“Powerhouse is now putting its money where it says it is,” said executive chairman Tim Yeo.
“The Peel NRE-Powerhouse Joint Technical Delivery Team has done a fantastic job aligning the vendors chosen to meet DMG’s specifications. “
Yeo said Powerhouse believes the loan facility has the “great advantage” of protecting Protos’ delivery schedule.
“The plant is modular and the majority of our project manufacturing activities are covered by these contracts. “
At 1123 BST, shares of Powerhouse Energy Group rose 6.04% to 5.09%.