TIDMPPC
RNS Number : 7409E
President Energy PLC
09 July 2021
9 July 2021
PRESIDENT ENERGY PLC
("President" or the "Company")
ATOME
Northern European green hydrogen and ammonia company
acquisition
President Energy (AIM: PPC), the energy company with a diverse
portfolio of production and exploration assets, announces a further
significant new development with regards to Atome, the Company's
hydrogen and ammonia production subsidiary
Highlights
-- Atome has acquired a 75% interest in a Northern European
based green hydrogen and ammonia Company ("HCO") for nominal share
value
-- The acquisition reflects Atome's strategic desire of being a
player in the European market for the supply of green hydrogen and
ammonia
-- Whilst HCO has no tangible assets at present, it has
experienced local management with a reputable CEO in the country
where the business is located
-- Whilst yet to start production, HCO is currently in
discussions with the respective National power company for power
supply as well as a recognised world leader in original equipment
manufacturing for the production of green hydrogen and ammonia
-- HCO is optimistic that an appropriate power purchase
agreement ("PPA") can be satisfactorily concluded to progress a
necessary pilot programme for hydrogen production in the relevant
country projected during, at, or around end of 2023 with, subject
to that success, a targeted estimated second phase industrial
production of 80,000 metric tonnes ("MT") of ammonia production per
year around the middle of the decade
-- With the Americas Project, announced on 1 July 2021, Atome
has now two separate spheres of interest which, if they both
progress to an industrial production stage, have the potential to
generate over 250,000MT per year of green ammonia by the end of the
decade
-- Atome will be responsible for providing a line of credit of
up to US$20 million to fund the pilot programme which is currently
projected to cost US$12 million and, upon success Atome will lead
the mobilisation of funding for the industrial production phase,
all being subject to, inter alia, a satisfactory PPA and equipment
supply agreement being in place
-- This represents the second concrete step by Atome in pursuit
of its stated business objectives and adds diversified geographical
focus to its initial portfolio
Peter Levine, Chairman, commented
"The announcement today further reinforces the determination of
President's subsidiary, Atome, to fulfil its strategic objective to
geographically expand its green hydrogen and ammonia portfolio to
the important European market ahead of the targeted listing of
Atome's shares on the London Stock Exchange later in the year
"Although at an early stage, discussions are underway in
relation to both the purchasing of power and the sourcing of
relevant hardware
"This latest development underlines the present and potential
future material shareholder value in Atome which we expect the
projected forthcoming flotation to realise and unlock for
President's own shareholders as well as providing those coming in
on the listing with significant upside in a sector of increasing
importance in the drive towards a carbon neutral future."
Share acquisition by Atome
Atome, a hydrogen and ammonia business in which President has an
85 per cent shareholding, has acquired, for a nominal
consideration, a 75 per cent interest in a Northern European based
green hydrogen and ammonia Company ("HCO").
The acquisition provides the opportunity for Atome to supply
green hydrogen and ammonia to European markets as part of
President's strategic interest to be present in the European market
in addition to its Americas centric Project.
Whilst the identity of HCO and the country in which it is
located must at this stage remain confidential for commercial
reasons, the existing and local, experienced management with a
reputable CEO who retain 25% of the company are in the process of
detailed discussions with both the National provider of green
renewable energy in the relevant country and one of the world's
leading original equipment manufacturers.
Combined with the international expertise, financial support and
footprint of President and its leading shareholders, the objective
of HCO is to expeditiously become the relevant country's first and
leading industrial scale hydrogen and ammonia producer utilising
the green renewable energy produced there, followed by export and
worldwide sale and distribution of the products.
Atome's entry into HCO provides that company with immediate
in-depth experience in management, planning and execution of major
projects, all of which is required by the prospective stakeholders
in the project being inter alia the power and equipment
suppliers.
The current business plan for HCO contemplates a two phased
approach to production. The first phase being completion of a proof
of concept pilot (demonstration) programme at an estimated cost of
some US$12 million targeted to be achieved during 2023 and
projected to produce 500 tons of ammonia per year and the second
phase, an industrial roll-out using up to 75 MW with the objective
to produce 230 tons of ammonia (NH3) per day (or 80,000 tons per
year) by 2025.
Atome has, subject to a satisfactory PPA being in place,
undertaken to provide a line of credit for up to US$20m to fund the
first pilot phase of the project and a further line of credit of
US$20 million towards the cost of the second phase subject to the
pilot programme being successful with Atome leading and mobilising
the financial package for that phase. It is estimated that the
pilot programme would be completed at or around end 2023 with the
second industrial production phase targeted for the middle of the
decade.
Having had pre contract engagement with the existing management
of HCO, President and Atome are optimistic that a fit for the
purpose PPA can be concluded to facilitate the successful pursuit
of the first phase pilot programme of HCO and establish grounds to
extend arrangements to enable the second phase of industrial
production to commence.
This is the second concrete agreement entered into by Atome and
diversifies its region focus to provide a more balanced and stable
portfolio. Accordingly, so far Atome has now under its auspices two
projects which if they both progress to an industrial production
stage have the potential to generate over 250,000MT of ammonia per
year by the end of the decade.
Work now continues on both Projects as well as the listing of
Atome's shares on the standard list of the London Stock Exchange
targeted for later this year.
Contact:
President Energy PLC info@presidentpc.com
Nikita Levine, Investor Relations +44 (0) 207 016 7950
finnCap (Nominated Advisor and broker)
Christopher Raggett, Tim Harper +44 (0) 207 220 0500
Strand Hanson (Financial Advisor to Atome)
Simon Raggett +44 (0) 20 7409 3494
Blytheweigh (Public Relations to Atome)
Tim Blythe, Alice McLaren, Madeleine Gordon-Foxwell + 44 (0) 755 499 7357
Notes to Editors
President Energy is an oil and gas company listed on the AIM
market of the London Stock Exchange (PPC.L) primarily focused in
Argentina, with a diverse portfolio of operated onshore producing
and exploration assets.
The Company has operated interests in the Puesto Flores,
Estancia Vieja, Puesto Prado and Las Bases Concessions, and
Angostura exploration contract, all of which are situated in the
Rio Negro Province in the Neuquén Basin of Argentina and in the
Puesto Guardian Concession, in the Noroeste Basin in NW Argentina.
Alongside this, President Energy has cash generative production
assets in Louisiana, USA and further significant exploration and
development opportunities through its acreage in Paraguay and
Argentina.
The Group is also actively pursuing value accretive acquisitions
of high-quality production and development assets capable of
delivering positive cash flows and shareholder returns. With a
strong strategic and institutional base of support, including the
international commodity trader and logistics company Trafigura, an
in-country management team as well as the Chairman whose interests
as the largest shareholder are aligned to those of its
shareholders, President Energy gives UK investors access to an
energy growth story combined with world class standards of
corporate governance, environmental and social responsibility.
Atome is the green hydrogen and ammonia subsidiary of President
Energy PLC with intended operations in the Americas and Europe and
a targeted separate listing on the London Stock Exchange market
later in 2021.
This announcement contains inside information for the purposes
of article 7 of Regulation 596/2014.
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