Using Powerhouse’s DMG-Core system at its heart, Waste2Tricity will aim for 100 installations in the UK and even more in Europe.
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DMG-Core will enable energy-from-waste and plastic groups to make money from their refuse, said Waste2Tricity’s executive deputy chairman Howard White.
“The scaled-down model can be introduced to create a highly profitable, low-risk opportunity that will both solve a problem and increase the efficiency of current facilities, giving them the possibility of upgrading to hydrogen extraction and retail at the target price,” he said.
The process uses currently unrecyclable plastic and rubber and turns it into energy, either for the operator or local distribution.
The PowerHouse process converts 25 tonnes of waste into 1 tonne H2 (hydrogen) per day and 28 Mwh per day of electricity.
To start making significant headway soon
Waste2Tricity expects that each installation will be structured as a special company and generate £900,000 in revenues on average per year.
From that, Powerhouse will receive a 20% licence fee and a share of revenue.
Each installation is expected to cost £5mln, funded by Waste2Tricity and the end user, with electricity generated at a cost of £45 per Mwh.
Waste2Tricity has already started marketing and sales should start when a process wrap is agreed with the EPC/engineering contractor.
This is only months away from being signed, said White.
“We would expect to start making significant headway very soon,” he added.
PowerHouse added Waste2Tricity’s statement is materially correct and appropriately indicative, but it was not necessarily reflective of future market conditions or of any contract terms that may be entered into in the future.
Shares rose 6% to 0.57p.
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