Letter of Intent – Hydrogen offtake, Ballymena, NI

Powerhouse Energy Group Plc (AIM: PHE), a company pioneering integrated technology that converts non-recyclable waste into low carbon energy with a revenue generating engineering consulting division ("Engsolve"), is pleased to announce that it has signed a Letter of Intent ("LoI") with B.S. Holdings Limited ("BSH"), whereby PHE will be the exclusive supplier of Hydrogen (at 99.999% purity) to BSH's proposed Fuel Cell (Penta) H2P project in Ballymena, Northern Ireland.

B.S. Holdings Limited is a trademarked UK company which specialises in design, design build and engineering, with a particular focus on hydrogen EHC (electro chemical hydrogen compressor) and H2P (Hydrogen to power). BSH also has a patent pending on a fuel cell hydrogen generation unit named Penta and engaged with Powerhouse as a potential energy supplier in the region.

The terms of quantity and duration are subject to agreement with DESNZ, Ecotricity, SONI and NIE Networks. Given that this is a FOAK (first of a kind) development project underwritten by DESNZ, PHE would supply Hydrogen at a price lower than that of both Green Hydrogen and the current UK CfD strike price.

PHE will also assist BSH in other Penta (Combined Heat and Power) CHP projects within the Mid and East Antrim Council region requiring hydrogen (noting that PHE is a commercial entity), subject to a battery limit of the production site. PHE, using Multiple Element Gas Containers (MEGC) trailers for storage, would be open in future to negotiate the facility to utilise the MEGC trailers for fuel deliveries to MEA council supported projects, in doing so supporting the council's drive for net zero and, in particular, net zero manufacturing.

BSH will aid PHE with sourcing further commercial clients, introductions to local companies and provide the Company with priority access to any future project / developments in which it is involved within NI and the wider UK.

Further updates will be provided in due course.

Paul Emmitt, Chief Executive Officer of PHE, commented:

"This is a first of its kind agreement and we are delighted to have entered into the LoI with BSH for this potential DESNZ backed project. One of the key issues holding back the increased utilisation of hydrogen has been gaining appropriate offtake agreements. This LoI has the potential to deliver that for our Ballymena project.

We look forward to working with the BSH team to complete this agreement and hopefully working together in Northern Ireland."

Brian Hood, Chief Executive Officer of BSH, commented:

"Without the fuel, the projects will not float, too many times we see great ideas and advances falter because of inadequacy of fuel and fuel at a sensible price. We also recognise that Powerhouses raw material use is a circular economy piece needed across the world. We are delighted to have reached this agreement and look forward to working alongside them in the delivery of the project.

Our FOAK has the potential to display to the industry an improved way of zero emission delivery for electricity use, controlling electricity wastage, not turning off with curtailment. By turning it into a green gas, then using it in our power stations, when the wind ceases, or as is frequently in Ireland with PV, a cloudy rain soaked dark day with no generation, we reuse the transmission line which is unused, now available and generate to the grid."

BSH is a UK registered trademark company. BSH specialises in design and or design and build M&E engineering systems with a focus on hydrogen, hydrogen compression and power. The factory already manufactures prepackage bespoke energy systems offsite production for plug and play. We built the trigeneration energy cabin for Tesco, the largest at that time in Europe, and for other innovative technologies we have won many local and national awards. The technology on offer from BSH will enable the UK to generate grid power from small power stations collocated with turbines / renewables across the country in a way which will help reduce curtailment.