PowerHouse Energy
Group plc
("PowerHouse" or
the "Company")
15th February 2019
Operational
update
PowerHouse Energy Group plc (AIM:
PHE), the UK technology company pioneering hydrogen and clean
energy production from waste plastic and used tyres is pleased to
update stakeholders on recent progress.
The level of interest in the
PowerHouse proprietary DMG® process from potential
customers, development partners and engineering, procurement and
construction (EPC) contractors has increased significantly in the
last quarter. Most of the interest expressed has comprised specific
enquiries that have been or are being taken through a screening
process prior to formal proposals. As a consequence, we are
progressing a number of potential deals in parallel, which we are
confident will result in a final contract for the first commercial
DMG®. We also have strong expressions of interest from
over a dozen site owners who would like to establish
DMG® units on their sites once our first unit is proven
operationally.
We are currently collaborating on
detailed site operational requirements, delivery programmes and
framework contracts for 6 client sites in the UK where it is
anticipated that the DMG® process will be utilised
first. As part of this process, potential customers or partners are
undertaking their own due diligence on the DMG® process, potential
operational savings and the speed with which plants can be
delivered. When this process is complete, heads of terms
would need to be agreed before signing a formal contract. We would
anticipate reaching a head of terms with at least one customer in
the next quarter. Signing of contracts would initiate revenue
generation for PowerHouse.
Our planned delivery programme for
the UK is that DMG® systems will be bought by partners
and customers and located on host waste sites, with revenues for
PowerHouse arising from sales and licences. We are in the
process of progressing planning and permitting assessments on the
potential clients’ sites under negotiation, in readiness for formal
submission on initial contractual agreement.
It is anticipated that engineering
and site assembly of each DMG® unit will involve an EPC
partner. We have been approached by several blue-chip companies who
would like to be considered to fulfil this role, each with
worldwide delivery capability. To support this contractual
engagement, PowerHouse has already put in place all the operational
systems, procurement, contractual and licensing frameworks
necessary to engage with such EPC partners.
In addition to the UK, we have
targeted the established Japanese hydrogen markets. Our development
partner Waste2Tricity (W2T) is now in commercial negotiation with
Toyota Tsusho Corporation, which we believe could lead to Toyota
Tsusho Corporation agreeing to be one of the companies introducing
our DMG® technology for hydrogen generation into Japan and other parts of Asia.
David
Ryan, CEO of PowerHouse, commented: “Considerable progress
has been made in terms of us maturing negotiations towards final
contract stage and in dealing with the substantial increase in
commercial leads. The PowerHouse commercial and engineering teams
and our project development partners W2T have dealt with the
increase in such interest magnificently, screening opportunities,
delivering proposals to potential customers and proactively
following up as appropriate and, importantly, within budget.
I am confident that we will sign heads of terms with at least one
of these in the next quarter.
“Our core focus is on securing the
first contract, and the significant strides we have made in recent
months and weeks are a strong indicator of the solid progress being
made towards building the first DMG® plant.”
ENDS
For more information, contact:
PowerHouse Energy Group plc
Tel: +44 (0) 203 368 6399
David Ryan, Chief Executive
Officer
WH Ireland Limited (Nominated Adviser)
Tel: +44 (0) 207 220 1666
James Joyce / Chris Viggor
Turner Pope Investments Ltd (Joint
Broker) Tel:
+44 (0) 203 621 4120
Ben Turner / James Pope
Ikon Associates (Media
enquiries)
Tel: +44 (0) 1483 271291
Adrian Shaw
Mob: +44 (0) 7979 900733
Notes for editors:
About PowerHouse Energy
PowerHouse has developed a proprietary process technology -
DMG® - which can utilise waste plastic,
end-of-life-tyres, and other waste streams to efficiently and
economically convert them into syngas from which valuable products
such as chemical precursors, hydrogen, electricity and other
industrial products may be derived. The PowerHouse technology is
one of the world’s first proven, modular, hydrogen from waste (HfW)
process.
The PowerHouse DMG® process can generate in excess of
1 tonne of road-fuel quality H2, and more than 28MW/h of exportable
electricity per day.
The PowerHouse process produces low levels of safe residues and
requires a small operating footprint, making it suitable for
deployment at enterprise and community level.
PowerHouse is quoted on the London Stock Exchange's AIM Market
under the ticker: PHE, and is incorporated in the United
Kingdom.
For more information see www.powerhouseenergy.net