PowerHouse Energy
Group plc
("PowerHouse" or
the "Company")
9th March 2020
DMG® Development UK
Exclusivity Option Agreement with Peel
PowerHouse Energy Group plc (AIM: PHE), the UK technology
company pioneering hydrogen production from waste plastic, is
pleased to announce it has signed an option to enter into an
exclusive agreement for the development of DMG® Technology in the
UK (the “UK Exclusivity Option Agreement”) with Peel Environmental
(part of Peel L&P) (“Peel”).
Under the UK Exclusivity Option Agreement, Peel has, if it
exercises the option, committed to lead the engagement with all
potential end customers for UK based DMG® plants such as councils
and waste management companies and will facilitate or help
facilitate the development of those DMG® plants in accordance with
the customers’ commercial requirements.
The UK Exclusivity Option Agreement is conditional upon and
requires the completion of the proposed PowerHouse acquisition of
Waste2Tricity Limited, which is progressing but has yet to be
finalised for logistical reasons, including the finalisation of a
shareholder circular in advance of a general meeting.
Peel are well positioned in the UK Energy from Waste sector to
deliver Powerhouse’s ambitious plans for quick and effective roll
out of DMG® technology thoughout the UK.
Peel not only bring their land bank as potential DMG® plant
sites, but also their experience of working within communities and
with other businesses working with end customers’ sites and
acquiring new sites for DMG® units.
PowerHouse will, if Peel exercises the option, receive £500,000
as a one-off fee for granting Peel exclusive rights to develop the
DMG® Technology in the UK. On an ongoing basis, PowerHouse will
then be entitled to a licence fee of approximately £500,000 for
each DMG® plant that Peel develops, which will become payable when
a unit becomes operational. PowerHouse may also earn additional
fees from technical engineering services and maintenance contracts
associated with each project if contracted by Peel to do so.
PowerHouse intends to negotitate similar exclusivity
arrangements with development partners on a country-by-country
basis as part of its strategy to enable rollout of its DMG®
technology in the most effective and speedy manner in each
region.
David Ryan, CEO of PowerHouse
Energy, said:
“We have chosen to work with Peel largely based on the
results of the very positive engagement we have had with them to
date combined with their well suited strategic fit as a development
partner for delivering an effective and sustained roll out of our
DMG® technology across the UK.
“They have the resource, reputation
and experience as well as a shared vision for providing
commercially sound solutions to meet the increasing demand for
energy from waste produced in an environmenentally responsible
manner. We very much look forward to having a highly productive and
mutually profitable working relationship with Peel.”
Myles Kitcher of Peel
commented:
“We have a huge problem with plastic
waste in the UK and we desperately need new infrastructure to
prevent it ending up in landfill or exported overseas. With the
first plant at Protos recently securing planning consent this
agreement is the next step in enabling this ground breaking
technology to be rolled out across the UK. It also fits with our
ambitions to deliver low carbon energy sources, with the production
of hydrogen which can be used as a clean fuel for transport.
“We are now looking at other sites
where the technology can be deployed, including on Peel owned land,
as part of our wider plans to develop a complete solution for
plastic waste. We are looking forward to working in partnership
with PowerHouse Energy to help local authorities tackle their waste
plastics in a more sustainable and cost effective way and deliver
on the UK’s net zero ambitions.”
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 / Lydia Zychowska |
|
|
|
Turner Pope Investments Ltd
(Broker) |
Tel: +44 (0) 203 657 0050 |
Andrew Thacker / Zoe Alexander |
|
|
|
Ikon Associates (Media
enquiries) |
Tel: +44 (0) 1483 271291 |
Adrian Shaw |
Mob: +44 (0) 7979 900733 |
About PowerHouse Energy Group plc
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 up to 2 tonnes of
road-fuel quality H2, and more than 58MWh 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
About Peel L&P Environmental and
Protos
Peel Environmental, part of Peel L&P, owns and develops
waste infrastructure projects. It has achieved consent for a range
of energy infrastructure schemes including a 49MW Energy from Waste
plant at Protos in Cheshire, 21MW
Energy from Waste plant and 250,000tpa AD and MRF in Glasgow; and a 20MW Energy Centre at Houghton
Main, Barnsley. Peel works with
investors, waste management companies, technology providers and
contractors to secure a deliverable business model for each
project. www.peelenvironmental.co.uk
Peel Environmental brought forward and consented the Protos
development, previously known as Ince Resource Recovery Park. The
54ha (134 acres) development site has full outline planning consent
and part detailed planning consent for general manufacturing and
distribution uses (B1, B2 & B8), as well as a biomass facility
and an Energy from Waste facility.
www.protos.co.uk @ThisIsProtos
Protos sits within the Energy Innovation District (EID) which
brings together energy users, network owners, innovators and
partners working alongside Cheshire & Warrington LEP,
Cheshire West and Chester Council and the University of Chester.
With the objective of driving down the cost of clean energy the EID
is an opportunity to deliver a new decarbonised energy system for
the North West of England, meeting
the Government’s Clean Growth agenda while boosting economic growth
and investment.
www.energyinnovationdistrict.com