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Hydrogen Utopia sets up defence sector-focused Fortress Fuel

ALN

Hydrogen Utopia International PLC on Thursday said it was setting up a new company to focus on energy for the defence sector.

London-based HUI converts non-recyclable waste plastic into hydrogen, clean fuels and advanced materials.

It has established a new subsidiary, Fortress Fuel Ltd, ‘to address what the board believes are compelling and fast-moving opportunities in defence energy and fuel security’.

Details of Fortress’s board will be shared in due course, HUI said.

It sees its new subsidiary addressing the vulnerability of military bases reliant on external supply chains.

Fortress will ‘reduce exposure to that vulnerability by converting locally stockpiled waste plastics into certified JP8 jet fuel, diesel and petrol,’ HUI explained.

Under combat conditions, HUI estimated that a stockpile of 100,000 tonnes of virgin plastic pellets can be used by a military base ‘as an on-site feedstock reserve’.

‘The intended Fortress Fuel system would operate without a grid connection, provide electricity for the base, and use water from on-site bore wells and process gas derived from the feedstock,’ HUI continued.

This system will target annual production of 28,000 tonnes of JP-8 fuel, alongside roughly 5,000 tonnes of diesel, 2,000 tonnes of petrol and surplus power to support extended operations.

This will enable military bases ‘to support air and ground operations for a target period of at least 12 months from within its own perimeter regardless of what happens beyond,’ HUI added.

The company has been in talks with potential partners in the defence, security and strategic infrastructure markets, it said, including meetings with Nato representatives.

It stressed: ‘These discussions are at an early stage and there can be no certainty that they will result in commercial agreements’.

HUI Chief Executive Aleksandra Binkowska commented: ‘We are living in times of great instability, and in such times the company has seen an enormous and accelerating level of interest from both political bodies and private corporations. The drivers are clear: the world is suffocating not only from rising fuel prices but also from a deeper, more unsettling anxiety about energy security and national safety. It is precisely in this environment that the board believes the case for a dedicated, deployable and sovereign fuel capability has never been stronger.’

HUI said Fortress Fuel will focus on a different market to the commercial segment of the business, and as a result, it does not expect the new subsidiary’s operations to affect existing projects in Saudi Arabia and Oman.

In April, another HUI subsidiary, Hydrogen Utopia International KSA LLC, entered an accord with Recyclee, a Saudi Arabia-based company, to establish a long-term strategic collaboration for the supply of waste feedstock in the Kingdom.

HUI shares fell 5.5% to 2.60 pence on Thursday around noon in London, but have more than doubled over the past year.

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