AFC Energy order & Issue of Shares

4 April 2014 PowerHouse Energy Group plc ("PowerHouse" or the "Company") PowerHouse orders first fuel cell from AFC Energy plc and issue of shares PowerHouse announces that it has, in a deal brokered by Waste2Tricity Ltd under the terms of its exclusive licence with AIM-listed AFC Energy plc ("AFC"), placed an order for one of the first available Beta+ fuel cell test systems, comprising two sets of fuel cell cartridges, to be produced by AFC. The initial payment of £50,000 has been satisfied by the issue of 2,000,000 new ordinary shares in the Company, subject to admission to trading on AIM. The fuel cell is expected to be delivered in December 2014, with the final balance of £100,000 due for payment three months after delivery. The cartridge, within an AFC system, holds the fuel cell stack and allows quick connection to the hydrogen and other utilities for ease of use. AFC will deliver, connect and commission the fuel cell system while PowerHouse will prepare the site and provide the required utilities, including hydrogen based on AFC's agreed specification. Further cartridges, additional maintenance or potential increases in capacity will be provided for an additional fee. During the testing and commissioning of the nominal 5tpd Pyromex gasification unit, it has been able to demonstrate that it can produce 75 per cent. pure hydrogen. Following delivery of the fuel cell, work will commence on operating the Pyromex unit in tandem with the AFC fuel cell system in order to improve the electrical output per volume of gas. In AFC's experience, the change to a pure hydrogen stream facilitates the introduction of fuel cells as the energy conversion device. AFC considers that the benefit to the operator is that the amount of power produced for a given quantity of feedstock increases by up to 30 per cent. Application will be made for 2,000,000 new Ordinary Shares to be admitted to trading on AIM and dealings are expected to commence on 10 April 2014. Keith Allaun, the Executive Chairman of PowerHouse, stated: "This is an exciting development for PowerHouse. The combination of these two advanced technologies has the potential to optimize their environmental advantages and electrical efficiency and if we are able to make the improvements we expect by using a fuel cell it could take Waste to Energy to a new level of operation." Ian Williamson, Chief Executive of AFC Energy, said: "This agreement is a further step towards our goal for deployment of large scale fuel cell systems in the waste-to-energy sector. We look forward to working closely with PowerHouse Energy to develop and improve the efficiencies of generating electricity from their gasification systems." John Hall, Managing Director of Waste2Tricity said: "At this exciting stage of the evaluation process we see real potential from Waste2Tricity's engagement with Powerhouse Energy and the Pyromex system, adding value for us in the geographical locations where we own or have the rights of first refusal for the AFC Energy technology. A successful combination of the technologies would be especially relevant in more remote areas without an existing distributed electricity system and so reliant on small scale diesel engines for local power generation. The PowerHouse systems operate not only on MSW type waste but also forest waste and other bio-waste materials, so combined with the fuel cell would offer an effective way of utilising local resources." For additional information please contact: PowerHouse Energy Group plc Keith Allaun - Executive Chairman Phone: +44 (0)20 7079 4407 Email: inquire@powerhousegroup.co.uk Sanlam Securities UK Limited (NOMAD and Broker) David Worlidge/Simon Clements +44 (0) 20 7628 2200 About PowerHouse Energy Group plc PowerHouse Energy Group plc is an alternative energy company specialising in the sale of waste to energy systems. PowerHouse's key advantages centre on its implementation of proprietary technology and a wealth of industry knowledge. The Company's technologies enable energy recovery from municipal waste streams that would otherwise be directed to landfills and incinerators; or from renewable and alternative fuels such as biomass, lignite (brown coal), tires, and plastics to create syngas for power generation or reformed into liquid fuels for transportation. For more information, visit our website at www.powerhouseenergy.net. About AFC Energy Founded in 2006, AFC Energy plc is re-engineering proven alkaline fuel cell technology to reduce the cost of electricity. Alkaline fuel cells have been used on US and Russian manned space missions for decades to provide electrical power and drinking water. By using platinum free, advanced materials, design tools and manufacturing processes at scale, AFC Energy is developing fuel cells that will compete with conventional technologies such as turbines for electrical power generation. Today, AFC Energy is pursuing opportunities in several sectors where hydrogen is readily available including the chlorine, clean coal and waste-to-energy industries as well as applications for distributed/back-up power. For further information, please visit the website: www.afcenergy.com. Waste2Tricity Ltd Waste2tricity is a structured solutions provider for the waste to energy sector and through its exclusive UK & Thai EfW Licences and rights of first refusal to AFC Technology will act as a platform developer for projects involving fuel cells in projects using waste as a feedstock. Its shareholders include Ervington Investments (UBO Roman Abramovich), Age of Reason Foundation and Eturab, all of whom are substantial shareholders in AFC Energy and/or Alter NRG Westinghouse and represent approx. 30% of each company. For more information, visit Waste2Tricity at www.waste2tricity.com
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