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HFI sign technology and territory licensing agreement

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Energy Global,


Hydrogen Future Industries PLC, a developer of a proprietary wind-based green hydrogen production system featuring an advanced aerodynamic wind turbine and a high-performance electrolyser, has announced a licensing and territory agreement to deploy the company's technology in the Republic of Ireland via a newly incorporated Irish company, Hydrogen Future Industries (Ireland) Ltd (HFI Ireland). HFI Ireland intends to develop a pilot hydrogen production system in Ireland to demonstrate the production of low-cost green hydrogen.

The company's wholly owned subsidiary, HFI IP Holdings Ltd, has granted HFI Ireland an exclusive territory licence for up to 20 years in consideration for which the company shall:

  1. Receive a licence fee of up to €2 250 000 payable over the term of the licence (including the license extension).
  2. Be issued with an initial 30% equity interest in HFI Ireland, increasing to 40% upon HFI Ireland attracting funding of €1 million for the development of a pilot energy system.

HFI Ireland's objective is to commercialise the HFI system (including wind turbines and electrolysers) in Ireland and to construct and operate wind turbine farms for the purpose of hydrogen generation, storage, sale, and distribution within the territory. The system's unique features include a smart hydraulic drive that improves efficiency and reduces the cost of energy production. This provides the ability to generate energy over a broader range of wind speeds and, significantly, the turbine can be raised and lowered for optimal wind capture, reducing maintenance and installation costs whilst reducing permitting and approval lead times. The system is designed to meet the needs of remote off-grid communities or energy users to ease the burden on existing national grid infrastructure.

The Irish government has set out its National Hydrogen Strategy for developing an indigenous hydrogen sector focused on decarbonisation, energy security, and developing industrial opportunities. Pursuant to this national policy, HFI Ireland's management believes there are significant opportunities to attract government support and other funding to accelerate the development of the business in Ireland. Accordingly, the company intends to provide HFI Ireland with completed front-end engineering designs to facilitate any applications for government grant aid, private equity and EIIS funding.

HFI has entered into a shareholder agreement which governs the establishment and key commercial objectives of HFI Ireland (shareholder agreement). Notably, HFI's ownership will increase from its current 30% interest in the issued share capital of HFI Ireland to 40%, if financing of at least €1 million has been secured by HFI Ireland towards the funding of a pilot energy production system within the country.

An exclusive territorial licence has also been granted to HFI Ireland, via HFI's IP holding company, HFI IP Holdings Ltd (the licence). Key details of the licence are:

  1. HFI will receive an aggregate licence fee of €750 000 from HFI Ireland during the first 10-year period of the licence. The fee is payable in equal annual instalments over the period of the licence.
  2. HFI Ireland has been granted a first right of refusal pursuant to which it may extend the exclusive licence for a further 10 years for an additional aggregate fee of €1.5 million, payable in equal annual instalments (license extension).
  3. The permitted purpose of the licence is the purchase, assembly, manufacture, sale, and development of HFI's proprietary wind-based green hydrogen production systems, including wind turbines and high-performance electrolysers and the creation and storage of hydrogen.

In accordance with the shareholder agreement, HFI has the right to appoint two directors to the board of HFI Ireland alongside its two Irish directors, Katie Campbell and James Campbell. Campbell has over 14 years as a global IT executive working with some of the largest companies in the world. With her years of experience, she has a proven track record of developing and executing large successful marketing campaigns that drive growth and engagement. Campbell has practiced as a commercial solicitor for over 40 years focussing on the technology, energy, and property sectors. He has represented many Foreign Direct Investment corporations from Silicon Valley. Furthermore, he has worked closely with the German steel group KORF KG and worked on Combined Heat and Power projects for Irish Steel.

Prior to entering the Licence agreement, the company held 70% of the issued share capital of HFI Ireland for the purposes of incorporating the new entity and upon the execution of the licence, the company now holds 30% of the issued share capital of HFI Ireland. Tim Blake, CEO, and Daniel Maling, Chief Commercial Officer, are both directors of HFI Ireland.

Daniel Maling, Chief Commercial Officer, commented: “There is an energy crisis in Ireland due to the incremental demand being driven primarily from the growth of data centres. There is a positive political drive to unlock new sources of renewable energy. The establishment of hydrogen infrastructure is central to Ireland's energy transition. In particular, the west of Ireland's terrain and prevailing wind conditions are ideal for HFI's turbines which are smaller, lighter and more environmentally friendly than current solutions. The HFI system provides data centres, industry and agriculture with a unique opportunity to supply their own renewable energy.”

Neil Ritson, Chairman, added: “This territorial licensing deal further validates the value of our IP and its importance in the renewable energy sector. Our CEO, Tim Blake, has been a regular visitor to Ireland over the last decade and has established relationships with key industry players. We look forward to providing further updates as we identify specific project opportunities and secure new sources of non-dilutive financing.”

 

 

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