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(Sharecast News) - PowerHouse Energy announced on Thursday that it has signed a letter of intent with BS Holdings (BSH) to become the exclusive hydrogen supplier for BSH's proposed hydrogen-to-power (H2P) project in Ballymena, Northern Ireland.
The AIM-traded firm said the agreement was a key step for its Ballymena development, which forms part of a first-of-a-kind project backed by the UK's Department for Energy Security and Net Zero (DESNZ).
Under the terms of the deal, PowerHouse said it would supply 99.999% pure hydrogen at a price lower than that of green hydrogen and the current UK Contracts for Difference (CfD) strike price.
Final terms, including volume and duration, remained subject to discussions with DESNZ, Ecotricity, SONI and NIE Networks.
The hydrogen would be used in BSH's planned Penta fuel cell system, a patent-pending combined heat and power (CHP) technology.
The two companies would also explore further collaboration on other Penta projects in Northern Ireland's Mid and East Antrim Council region, with PowerHouse potentially supplying hydrogen via trailer-based storage systems to support regional net zero manufacturing ambitions.
As part of the agreement, BSH would assist PowerHouse with introductions to local commercial partners and offer priority access to future hydrogen projects across Northern Ireland and the wider UK.
"This is a first of its kind agreement and we are delighted to have entered into the letter of intent with BSH for this potential DESNZ-backed project," said PowerHouse CEO Paul Emmitt.
"One of the key issues holding back the increased utilisation of hydrogen has been gaining appropriate offtake agreements.
"This letter of intent has the potential to deliver that for our Ballymena project."
At 1313 BST, shares in PowerHouse Energy Group were up 9.09% at 0.54p.
Reporting by Josh White for Sharecast.com.
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