Powerhouse Energy Group PLC inks loan deal to advance Protos plant
The company said it will provide up to £3.8mln to secure long lead time items and project design services in respect of the Protos project prior to securing long-term debt funding arrangements
() said it has signed a loan agreement to provide up to £3.8mln to Protos Plastics to progress the development of the Protos plant, the first proposed commercial application of the company’s DMG waste plastic to hydrogen technology.
Under the deal, AIM-listed Powerhouse said the loan facility will be used to secure long lead time items and project design services in respect of the Protos project, prior to securing long-term debt funding arrangements.
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More specifically, the loan will be committed to the procurement of items including the thermal conversion chamber, the syngas process module, the compression and power generation modules.
The facility is available for six months and drawdown will be in agreement with the budgeted Protos development cash flow. Repayment, meanwhile, will follow the final or on the second anniversary of the loan, whichever is earlier.
Powerhouse said the loan follows the sanctioning of the project by the board and will supplement existing project investment, adding that completion of the Protos plant remains its top priority and the provision of the loan will protect the development schedule.
“Powerhouse is now putting its money where its mouth is. The joint Peel NRE/Powerhouse technical delivery team have done a fantastic job in aligning the chosen suppliers to meet the specification for DMG. We are confident that this loan facility has the great benefit of protecting the delivery schedule for Protos. The plant is modular and the majority of our project fabrication activities are covered in these contracts”, Powerhouse executive chairman Tim Yeo said in a statement.
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