Powerhouse Enrgy Grp Full Year Business Update
09 January 2018 - 6:00PM
UK Regulatory
TIDMPHE
9 January 2018
PowerHouse Energy Group plc
("PowerHouse" or the "Company")
Full Year Business Update
PowerHouse Energy Group plc (AIM: PHE), the UK technology company pioneering
hydrogen production from waste plastic and used tyres, is pleased to provide
the following update on the Company's progress during the financial year ended
31 December 2017.
Major progress has been made in the process of seeking the commercialisation of
the Company's core technology, the PowerHouse G3-UHt Distributed Modular
Gasification (DMG®) system. This low-cost system has been developed
specifically to convert almost all types of waste plastic into a synthesis gas
("syngas") delivering a high proportion of hydrogen of road fuel quality for
use in fuel cell cars, trucks and buses.
PowerHouse's distributed model and use of waste plastic and used tyres as
feedstock means that, for the first time, hydrogen can be sold as a road fuel
at or near the point of production and at a cost competitive with current
hydrocarbon fuels. This underlines the ground-breaking potential of
PowerHouse's technology as to date the production and delivery costs of
hydrogen have prohibited its widespread use as a road fuel.
The DMG® system continues to generate significant interest from both domestic
and international partners, in part reflecting the urgency of finding a
solution for the worldwide problem of waste plastic pollution. Growing media
attention, such as the Sky Ocean Rescue campaign and the BBC's Blue Planet II,
has heightened interest in this issue.
The attractions of the DMG® system are further reinforced by China's recent
decision to ban the import of waste plastic from the UK and other countries.
The UK alone will be forced to find new ways to deal with approximately 500,000
tonnes of plastic previously shipped to China each year.
Progress achieved during the year to 31 December 2017 includes:
* Board strengthened in October 2017 by the appointment of Dr Cameron Davies
as Non-Executive Chairman, founder and former CEO of Alkane Energy plc with
a PhD in Applied Geochemistry from Imperial College London and more than 20
years' experience in power generation and the energy industry
* The commissioning at the University of Chester's Thornton Science Park of
the prototype G3-UHt unit and the successful demonstration of its
ultra-high temperature production of syngas from waste tyres
* An extended trial of the G3-UHt unit showed that the production of syngas
could be controlled to produce more than 50 per cent hydrogen by volume
with independent analysis by Linde BOC confirming the syngas could be
purified to road-fuel-quality hydrogen
* Memorandum of Understanding signed to explore the possibility of
establishing a DMG® network in Qatar for the conversion of waste to
hydrogen for fuel cell vehicles
* Completion of pre-Front-end Engineering and Design (pre-FEED) stage in the
engineering design of a 25 tonne-per-day commercial DMG® system
* The signing of heads of terms with Peel Environmental Ltd ("Peel") for the
first site for a commercial DMG® unit. The Peel site, in Cheshire, benefits
from access to the national gas and electricity grids and has excellent
transport links
The milestones achieved in 2017 position the Company for further progress
during the current year and beyond.
Key priorities and targets for the year ahead include:
* Continuing design work of the first commercial DMG® system - currently in
the Basic Engineering Program and Front-end Design and Engineering (FEED)
stage in which component suppliers will be selected and design schema
optimised
* Building, commissioning and full-scale operation of the first commercial
DMG®
* Working with Peel in advancing the planning and other permissions for the
first Cheshire site, as agreed under heads of terms in December 2017, and
in progressing site engineering works
* Signing agreements on the feedstock for the commercial G3-UHt system and on
the ultimate use of the syngas
* Creating a plan for the further development of the Cheshire site, with the
ultimate target of having the capacity to produce more than 2MW of
electricity and 3 tonnes of high-quality hydrogen per day
* Continuing to explore worldwide partnering and licensing opportunities for
the DMG® system, including the possibility of DMG® networks in Qatar, East
Asia, continental Europe and the USA.
* Seeking and agreeing strategic alliances, and pursuing other initiatives,
in transport-related fuel cell applications
Keith Allaun, CEO of Powerhouse Energy, commented:
"The year to 31 December 2017 has been a year during which PowerHouse Energy
took major strides towards achieving its objective of commercialising its
proprietary and highly efficient technology to convert plastic and other waste
into syngas for hydrogen production. We have been a pioneer in the distributed
hydrogen-from-waste-plastic market in the UK and we are targeting early
adoption of our technology.
"From a financial perspective, we eliminated a significant hurdle to our growth
by reaching agreement to retire the convertible note with Hillgrove Investments
Pty Ltd through the payment of GBP2 million in cash and the issuance of GBP1.4
million in equity; the note was accruing nearly GBP500,000 in interest per annum.
"We enter the new year focused on delivering the commercialisation of our DMG®
technology during 2018, and we remain confident that hydrogen from waste
plastic will emerge as a preferred fuel for road transport."
For more information, contact:
PowerHouse Energy Group plc Tel: +44 (0) 203 368 6399
Keith Allaun, Chief Executive Officer
WH Ireland Limited (Nominated Adviser) Tel: +44 (0) 207 220 1666
James Joyce / Alex Bond
Turner Pope Investments Ltd (Broker) Tel: +44 (0) 203 621 4120
Ben Turner / James Pope
Buchanan (Media enquiries) Tel: +44 (0) 20 7466 5000
Mark Court / Chris Lane
About PowerHouse Energy
PowerHouse Energy Group plc is the developer of the G3-UHt Ultra High
Temperature Gasification unit, and the creator of DMG®, the Distributed Modular
Gasification System that allows the distributed eradication of waste, the
generation of distributed electricity, and the production of distributed
hydrogen with the world's first hydrogen from waste (HfW) process.
The Company is focused on technologies to enable projects for energy recovery
from municipal and industrial waste streams that would otherwise be directed to
landfills and incinerators; or from renewable and alternative fuels such as
biomass, tyres, and plastics to create synthesis gas (syngas) for power
generation, or high-quality hydrogen as a fuel for transport. DMG® allows for
easy, economical, deployment and scaling of an environmentally sound solution
to the growing challenges of waste eradication, landfill diversion, electrical
demand, and distributed hydrogen production.
PowerHouse is quoted on the London Stock Exchange's AIM Market and is
incorporated in the United Kingdom.
For more information see www.powerhouseenenergy.net
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