By Anthony O. Goriainoff
Shares in Powerhouse Energy Group fell after the company said it was deferring its commitment to the non-recyclable plastic waste-to-hydrogen facility in Ireland while it assessed the final position in its negotiations with Hydrogen Utopia International.
Shares at 0929 GMT were down 0.07 pence, or 19%, at 0.31 pence.
The U.K. technology company said Monday that the board had decided that the capital contributions currently proposed for the joint-development project weren’t in the company’s best interest.
The company said it had a number of potential projects in the pipeline and that it needs to prioritize among them and assess the effect each of them will have on its existing cash resources.
In March the company said it had agreed with Hydrogen Utopia International to jointly-develop the Longford, Ireland, project.
“Our ongoing review of the Longford Project since the Heads of Terms were signed in March, along with developments in other areas of our business, have all had to be taken into account. This has taken us to the inescapable conclusion that, through today’s eyes, the best interests of PHE dictate that now is not the right time to commit to the Longford Project and to making significant capital contributions. We remain hopeful that position will change,” the company said.
Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com
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