First Revenue Contract for PowerHouse Energy
PowerHouse Energy Group plc
("PowerHouse Energy" or the "Company")
17 April 2019
First Revenue Contract for PowerHouse Energy
PowerHouse Energy Group plc (AIM: PHE), the UK technology company pioneering hydrogen and clean energy production from waste plastic, is pleased to announce that it has signed a binding contract with its exclusive partner, Waste2Tricity Limited (“W2Tâ€), for PHE to provide planning and engineering design services that will, subject to successful outcome, lead to a build contract and license for use of the DMG® Technology at the Protos site. The agreement defines the paid scope of works during two stages of planning and engineering. At signature, based on quotations from potential Contractors PHE provisionally anticipates that total revenue from the two stages of the contract will amount to approximately £400,000 to cover PHE and Contractors costs.
The engineering design services to be provided by PHE for stage one includes specific feedstock analysis and testing including some third party services, site modelling and specific engineering related to the Protos site. This work will define the parameters for the second stage of the project, the Front End Engineering Design (FEED) contract which it is anticipated will be placed with an Engineering, Procurement & Construction (EPC) contractor, following an agreed review.
The agreement also incorporates Heads of Terms in relation to PHE acting as operational process engineering supplier for the DMG® Technology at the Protos site, encompassing design rights, build contracts and licensing proposition of its technology.
This contract comprises another step towards achieving Financial Close for the first commercial site utilising PHE’s DMG Technology.
David Ryan, CEO of PowerHouse Energy, commented:
“This is the first revenue generating contract signed by PHE and follows the typical revenue regime we will be following for future developments, recognising that more substantial revenues will arise from IP, Design Rights, and licensing and operational engineering in due course. This agreement demonstrates that W2T expects that a special purpose vehicle formed by it intends to place a formal order for DMG® when the Pre-FEED and FEED work is complete. We thank W2T for their commitment and long standing support.â€
John Hall, Chairman of Waste2Tricity (Protos) Limited commented:
“This agreement formalises our commitment to implement DMG® Technology on the Protos site. We are working closely in partnership with Peel Environmental, the overall Protos Energy Hub site owners, to finalise all the design parameters with PHE to take the development to the FEED stage and through to fabrication and construction as soon as practical.â€
David Ryan, CEO of PowerHouse Energy, further commented:
“We have delivered this agreement in line with our expectations this quarter and we are thankful to our shareholders who have supported us over the years to develop this ground breaking technology to this point of commercialisation and revenues.
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 and DMG technology
PowerHouse Energy 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
About Waste2Tricity (Protos) Limited
Waste2Tricity (Protos) Limited (W2TP) is the SPV (Special Purpose Vehicle) for the implementation of energy-from-waste facilities at the Protos site and has been set up by W2T the development partners of PHE.
Waste2Tricity is a structured solutions provider to the energy-from-waste (EfW) sector, an industry supplying increasing amounts of electricity using feedstock diverted from landfill.
Waste2Tricity works with clients and partners to develop, fund and support EfW deployment projects that use proven technology, are profitable and progressive; projects that currently use high temperature gasification and either steam cycle or internal combustion engines/gas turbines (ICEs/GTs) to efficiently convert waste to energy.
For more information see www.waste2tricity.com
About Peel Environmental and Protos
Peel Environmental, part of Peel Land and Property (Peel L&P), owns and develops waste infrastructure projects. It has achieved consent for a range of energy infrastructure schemes including a 35MW 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.
Peel Environmental brought forward and consented the Protos development, previously known as Ince Resource Recovery Park. Protos is the destination of choice for energy, innovation and industry. Boasting unrivalled connections to some of the region’s biggest industrial forces, Protos is a strategic energy hub at the core of the Northern Powerhouse.
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. Set on the south bank of the Manchester Ship Canal in the North West of England, the site is ideally placed to become an industrial micro-climate, with enviable transport links providing access to UK and International markets and surrounding industrial heartland.
For more information about Protos visit: www.thisisprotos.com
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