Powerhouse Energy Group plc (AIM: PHE), the UK technology company pioneering hydrogen production from waste plastic, is pleased to report that Peel L&P (“Peel”) has now completed the Engineering Definition stage of the contractors’ work for the DMG plant at Protos on schedule.
The engineering phase has been undertaken for the overall site and developed for the DMG application to provide at detailed level the site definition drawings and the procument packages for equipment and components from suppliers. This will enable the delivery contractors to price their contracts for constructing the plant and the associated on site buildings.
The engineering work has provided a further technical and commercial validation of the DMG technology by international contractors. The completion represents a significant step towards plant construction commencing as planned in Q4 2020 and will facilitate Peel’s progressing to finalising the project financing. In addition, the Company expects the payment of the one-off £500,000 exclusivity fee from Peel L&P Environmental for the exclusive rights to develop the DMG plants in the UK to be completed before the finalisation of project financing.
The progress made towards commencement of plant construction of Protos, the first of many UK DMG plants envisaged by Peel, augurs well for the Powerhouse business. Each plant completed will not only generate further engineering services work for Powerhouse at the front end and during construction, but would also provide the Company with a substantial ongoing royalty income.
As set out in the Company’s announcement of its financial results published on 30 June 2020, the Company is managing its working capital position and its existing cash resources are now expected to be sufficient until into early quarter four 2020. The Company is in discussions regarding raising further finance and it is confident that these will be concluded shortly.
It is planned to hold the Company’s Annual General Meeting in September 2020 by video conference and notification and full details will be issued to shareholders in due course.
Commenting, David Ryan, CEO of Powerhouse, said: “I would like to congratulate Peel L&P Environmental on bringing the phase for the DMG plant at Protos to a successful completion to their schedule through the lockdown period – this was a significant achievement. The involvement of experienced engineering contractors defining the application at Protos has provided further commercial and technical validation of our DMG technology.
“We are confident that the delivery of this first commercial plant can provide a community based distributed source of hydrogen to further the hydrogen economy in the UK and I welcome today’s announcement that in addition to the 11 agreed initial projects Peel envisage the roll out of many more plastic-to-hydrogen facilities across the UK.”
Richard Barker, Director at Peel L&P Environmental, said: “This FEED phase is an important step forward in delivering this innovative technology at Protos. Working with Powerhouse we’re creating a blueprint for this UK first plastic-to-hydrogen facility, with plans to roll out many more across the UK. With hydrogen increasingly being seen as an important part of our journey to net zero the time is now.”