Hydrogen Utopia seeks GBP-500m tie-up with biofuels firm

Britain’s Hydrogen Utopia International PLC (AQSE:HUI) disclosed today that it is looking to combine with a “profitable international” bio-energy company active in the production and business of biofuels and its bi-products, with the deal seeking to create the first plastic waste to hydrogen facility in the world.

The parties have signed heads of terms regarding the potential deal that will be carried out by way of a reverse take-over worth about GBP 500 million (USD 634.7m/EUR 585.8m), HUI said in a statement.

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Shares in HUI soared on the news, trading 42.44% higher at 12.25 pence as of 1254 GMT in London. The price implies a market capitalisation of over GBP 47 million, based on the number of ordinary shares in issue.

The target company, the name of which was not disclosed, owns a number of operational plants in different jurisdictions. The business reported over EUR 365 million (USD 395.4m) in revenue and over EUR 40 million in profits before taxes, based on the most recent unaudited consolidated accounts as of end-2022.

The unnamed entity also owns land in Europe with substantially all permits and authorisations required for the rollout of a waste-plastic-to-hydrogen facility. One of the conditions of the proposed tie-up will be for this land to be made available to HUI upon completion, among other requirements related to the planned facility.

“I have explored numerous potential opportunities for the roll out of a waste plastic to hydrogen facility over the last 3 years. I am delighted to announce that my search has now been successful. HUI is to become part of a larger, international bio-fuels specialist, whose mission is aligned with HUI's,” said HUI’s chief executive Aleksandra Binkowska.

Under the terms of the proposed deal, HUI will acquire the entire issued share capital of the target company. Subject to due diligence and an independent valuation, the price for the target will be partly satisfied by the issue of new HUI ordinary shares. In addition, the parties will agree on a structure whereby existing HUI shareholders will each receive three pence in cash for each share held upon completion.

No definitive agreement has been inked yet and it could not be certain whether any transaction will materialise, HUI noted.

Hydrogen Utopia converts non-recyclable mixed waste plastic into hydrogen and other carbon-free fuels, new materials, or distributed renewable heat.

Earlier this month, the company secured more than 10,000 square metres of land in North Macedonia for a waste plastic to hydrogen facility, which will be potentially built near medical cannabis facilities owned by an entity controlled by HUI.

(GBP 1 = USD 1.270/EUR 1.172)

(EUR 1 = USD 1.083)