TIDMMEN TIDMATOM
RNS Number : 7139L
Molecular Energies PLC
05 January 2023
5 January 2023
Molecular Energies PLC
("MEN" or the "Company")
Green House Capital
Dual Fuel Joint Venture with G-volution
Molecular Energies PLC (AIM: MEN), the international energy
company announces the formation of Dual Fuel Limited a new joint
venture for its Green House Capital division.
Highlights
-- Dual Fuel Limited ("DFL") has been incorporated to provide an
engineering to implementation solution for the conversion of
commercial diesel engines to run on a diesel and hydrogen mix
-- DFL is a joint venture between the Green House Capital
division of MEN and G-volution, an leading UK dual fuel technology
business
-- DFL's objective is to provide engineering solutions using
G-volution's contribution to the JV of its proprietary technology
to quickly and cost effectively convert existing commercial road
and off-road vehicles as well as barge transport to run on a mix of
diesel and green hydrogen
-- DFL aims to have its first prototype converted dual fuel
vehicles running in the field by end 2023
-- The initial lead market will be Paraguay due to the
favourable strategic and commercial environment and importantly the
availability of green hydrogen fuel for mobility from ATOME Energy
PLC, a company in which MEN is one of the largest shareholders
-- The objective, after proof of concept, is to roll out
conversion solutions to end users within the Mercosur trading bloc
and worldwide married to availability of hydrogen from third party
producers
-- DFL intends to provide a solution to commercial users who
recognise the need to demonstrate their commitment to reduce
emissions without having to replace existing vehicle fleets or
barges thereby obviating the time-consuming requirement to expend
significant monies for new commercial hydrogen fuel cell ("FCEVs")
or battery electric vehicles ("BEVs") with hydrogen range
extenders
Peter Levine, Chairman, commented: " Hydrogen for heavy
commercial transport is an essential component in the
decarbonisation of heavy transport where current electric vehicles
are not appropriate for heavy loads and distances. The cost of
electricity can be high and charging points are at a premium for
long distance travel outside of urban and built-up environments.
Moreover, the roll-out of hydrogen for heavy commercial transport
users is being impacted not only due to the availability of green
hydrogen but also by the high cost of either hydrogen direct
powered vehicles or hybrid electro-hydrogen alternatives.
"Dual Fuel aims to provide a quick and cost-effective solution
to users across the spectrum who want to make a meaningful
contribution to reduction of emissions now whilst at the same time
keeping their existing vehicles on the road with the flexibility
that dual fuel use will provide.
"In parallel, in the event that Dual Fuel successfully achieves
its objectives, this will prove to be positive and complementary to
ATOME Energy in its mission of expanding the market and offering
for its mobility division."
For further information please visit
www.molecularenergiesplc.com or contact:
Molecular Energies PLC +44 (0) 207 016 7950
Nikita Levine, Investor Relations info@molecularenergiesplc.com
finnCap (Nominated Advisor and
broker)
Christopher Raggett, George Dollemore +44 (0) 207 220 0500
Tavistock (Financial PR and IR)
Simon Hudson, Nick Elwes, Charles
Baister +44 (0) 20 7920 3150
G-volution Ltd +44 (0) 117 9596470
Chris Smith, CEO chris.smith@g-volution.com
Background
DFL, a UK registered joint venture company has been formed in
equal shares by the Green House Capital division of MEN and
G-volution, a leading UK dual fuel technology business. Based in
the UK but with the intention to operate internationally, the
purpose of DFL is to create, provide and implement engineering
solutions to convert existing diesel engines to run on a mix of
diesel and green hydrogen for a range of HGV, on and off- road
industrial and agricultural vehicles as well as barges.
Currently, the number of active FCEVs or BEVs in heavy goods
long range transportation is constrained by their associated costs
and practicality making them commercially unattractive to
non-governmental, non-sponsored, non-local authority users without
material grants and subsidies which are increasingly more complex
to obtain due to the prevailing financial climate.
Other issues that surround the commercial attractiveness of such
vehicles (FCEVS and BEVs) thereby impeding progress towards
reduction of emissions include:
-- The long lead times for such vehicles to both be developed and be available to the market
-- Supply chain delays and bottlenecks
-- The availability of hydrogen refuelling stations (HRS) and
charging points for BEVs, specifically outside of urban areas
-- The limited driving range of BEV HGVs and long charging times, increasing haulage costs
-- The restricted capability of battery associated vehicles to
carry very heavy loads over long distances
-- The sourcing and recycling of lithium and rare earth minerals
used in battery associated vehicles
-- The limitation of available electricity power sources in
coping with increased demand for mobility
The DFL integrated solution
The solution of retrofitting vehicles to run on both diesel and
hydrogen in unison aims to benefit the end user in the following
ways:
-- A quick and cost-effective retrofit using established
technology in an innovative and practical way and benefitting from
proprietary technology
-- Meaningful reduction in CO(2) emissions whilst at the same
time not increasing nitric oxide emission levels
-- Transport that can still be used solely on diesel as well as
dual fuel thereby giving flexibility in driving conditions
-- Fast refuelling times
-- Dual fuel technology enhances standard vehicle range allowing for long-distance travel
-- Safe and energy efficient
-- Early projections suggest that dual fuel can help to
significantly reduce fuel costs and total cost of ownership
-- Potential generation of carbon credits
DFL's challenge is to have operational dual fuel vehicles by the
end of 2023. The initial test bed will be Paraguay, a unique
geography where all goods are carried by road or barge across a
country larger in size of Germany and with the third largest barge
fleet in the world. It is also a location of operations of ATOME
Energy, the London Stock Exchange pure green hydrogen and ammonia
production company, and who will provide green hydrogen through its
Mobility Division scheduled to commence business during 2023. MEN
will mobilise in-country engineering expertise to facilitate
prototype mechanical engineering and conversion.
DFL in conjunction with ATOME will therefore provide users with
an integrated package of dual fuel technology married to the
availability of green hydrogen fuel , allowing customers to
demonstrate important and immediate material emission reductions
whilst maintaining the use of their existing fleet of vehicles.
The objective of DFL's work will be to provide dual fuel
conversion to vehicles within a 72-hour period utilising trained
in-country mechanics. Once proven , the solution will then be
rolled out into other countries both within Latin America and
worldwide , with ATOME through its Mobility Division where possible
and practical providing or procuring the necessary hydrogen supply,
as appropriate, to join the dots and provide a one-stop-shop
solution.
In parallel with the work to provide the solutions, the
generation and sales of carbon credits will be researched and, if
possible, will provide a valuable part of DFL's armoury as will be
the active decarbonisation support from international and
multi-lateral organisations and like facilities.
Initially, in like manner as to how ATOME Energy PLC was
incubated within MEN before being spun out of the Group as an
independent public company, funding for DFL will be provided by way
of intercompany loan by the MEN Group out of its own resources.
Other opportunities for Green House Capital
The lithium potential project of Green House remains under
consideration but as stated when originally announced, this is a
long-term opportunity.
In the meantime, Green House is actively pursuing other
alternative energy opportunities such as the one announced
today.
An update on MEN's hydrocarbons business which continues to be
operationally profitable will be provided on 9 January 2023.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK Domestic Law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR"). The person who arranged for the release of this
announcement on behalf of the Company was Peter Levine,
Chairman.
About Molecular Energies
Molecular Energies PLC is an AIM listed company at the forefront
of energy development and has interests across the energy spectrum,
from oil and gas projects to subdivisions in the green and
alternative energy sub-sectors.
The Company has oil and gas production in two geographical
markets: Argentina and the United States, as well as exploration
assets in both Argentina and Paraguay. The Company also has two
separate subdivisions which are focused on early-stage
opportunities in the green and/or alternative energy
sub-sector.
Activities in the green and alternative energy space are being
carried out under the Green House Capital brand. The Company
remains a significant shareholder in the independent AIM listed
green hydrogen and ammonia production company ATOME Energy PLC
which it spun out of the Group in December 2021.
With a strong strategic and institutional base of support, an
in-country management team as well as the Chairman whose interests
as the largest shareholder are aligned to those of its
shareholders, Molecular gives UK investors access to an energy
growth story combined with world class standards of corporate
governance, environmental and social responsibility.
About G-volution Ltd
Established in 2008, G-volution Ltd is a British SME
specialising in decarbonising heavy transport and power generation
by deployment of its patented dual fuel technology for the Road,
Rail, Marine and Power Generation sectors around the world.
More details on G-volution can be found at
www.g-volution.co.uk
-ends-
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