Ireland – Hydrogen Utopia has reached an agreement with Trifol Resources Limited (TRL) in Ireland, which it expects to lead to the company’s first full-scale waste plastic to hydrogen facility in Europe.
The agreement includes a suitable site in an EU Just Transition Fund region, potential access to an investment-grade plastic feedstock supplier, and the possibility of agreeing offtake for the facility’s expected hydrogen and syngas outputs with a significant customer whose covenant would be considered of very high quality.
As part of the agreement, HUI will invest €500k in TRL, a company with patented waste plastic to wax technologies that transform post-consumer plastic into high-grade new slack wax and a fuel using an innovative pyrolysis process under low pressure. The parties believe that the investment offers potential synergies and opportunities for both companies because HUI’s hydrogen production process uses pyrolysis of plastics.
HUI has met with a potential investment grade waste plastic supplier who could provide all of the feedstock needed to run a HUI facility, as well as a potential significant customer who could benefit from the facility’s expected hydrogen and syngas output. HUI believes that at a later date, this could lead to long-term supply and offtake agreements.
HUI supports TRL
HUI has agreed to subscribe €500,000 for new TRL shares, giving it a minimum equity stake of 3.33 percent on a fully diluted basis and a seat on the company’s board of directors. HUI and TRL have agreed to use their best efforts to negotiate and enter into a full development and collaboration agreement within the next 90 days, assuming TRL has obtained all necessary consents to enter into the DCA on HUI’s terms.
The DCA will lay out a detailed plan for developing both the HUI waste plastic to hydrogen facility and TRL’s wax business, including the grant of a license, sublease of the site, or other appropriate use agreement acceptable to HUI, or the establishment of a special purpose vehicle to own the HUI facility, with step-in rights to TRL’s lease and the right to acquire the freehold. HUI will also provide TRL with additional funding in the form of equity and a secured loan facility, according to the agreement.
HUI is in talks with a third party about forming a joint venture to construct the HUI facility in Ireland.