POWERHOUSE ENERGY GROUP PLC - Operational update re share price movement
PR Newswire
London, May 31
PowerHouse Energy Group plc
("PowerHouse" or the "Company")
1stJune 2020
Operational Update in Response to Share Price Movement
PowerHouse Energy Group plc (AIM: PHE), the UK technology company pioneering hydrogen production from waste plastic, notes the recent increase in the Company's share price and confirms that it is not aware of any material basis for this rise over and above the Company's previous announcements.
In relation to the proposed acquisition of Waste2Tricity Limited ("W2T"), due diligence and legal work is nearing completion and the Company anticipates that the circular in relation to the acquisition will be issued in June.
The Protos project, the first targeted commercial application of the Company's waste plastic to hydrogen regeneration technology is proceeding under Peel L&P direction and project updates will be forthcoming regarding ongoing activities. Peel's project funding exercise for this first development and their proposed pipeline of future projects is running in parallel with, the engineering work. PowerHouse has to date received payments for engineering and consultancy services for the completed stage of the project and expects to receive engineering fees this month for the current stage.
As announced on 9 March 2020, Peel has signed an Option for UK exclusivity as developer of the Company's DMG technology, subject to the successful completion of the acquisition of W2T by PowerHouse, and completion of this Exclusivity. Under this arrangement, the Company will licence its technology to the developer in return for the annual licence fee of £500,000 on each commercial project developed.
It is part of the Company's strategy to seek similar development partners on a country by country basis.
Peel is currently selecting the series of projects beyond the initial commercial development from a list of screened sites that it and PowerHouse have assembled. It is anticipated that announcements on the next project in the second half of 2020.
The Company has and continues to manage outgoings and operating costs within budget and during 2020 project engineering operating costs have been covered by revenues received for engineering services. The Company's current cash balances are approximately £280,000 and with committed incoming fees, these resources will meet outstanding fees associated with the proposed acquisition of W2T and the Company's current net cash burn of administrative costs until fourth quarter of the year. Further revenues are expected from operations and the UK exclusivity payment under the option agreement with Peel as set out in the announcement of 9 March 2020 .
The Company expects to report its financial results for the 12 months ending 31st December 2019, by the end of this month and the Company will further outline progress, strategy and plans within this announcement.
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 (Joint 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 |
Notes for editors:
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
