• Technology to convert unrecyclable plastic and tyres into clean energy
• DMG can produce syngas to generate electricity or converted to hydrogen
• Hydrogen produced can be used to power fuel cells used in vehicles
What PowerHouse Energy does
PowerHouse Energy Group PLC (LON:PHE) specialises in technology that converts unrecyclable plastics and end-of-life tyres into clean energy.
The company’s technology, called DMG, uses a process of small scale gasification to turn the waste products into energy rich clean syngas (synthetic gas similar to natural gas) from which electrical power and hydrogen can be produced.
The syngas can also be used to power traditional gas engines, while the hydrogen can be used to power fuel cells that can be used in buses, lorries, and cars.
• In February, the company said it was expecting its first revenue generating contract to be signed “in the next quarter” following a pick-up in interest in its DMG process
• In December 2018, the group raised £650,000 through a share placing to provide capital to support the continuity and expansion of its commercial and engineering efforts
• In November 2018 the company said it had been invited to engage in “advanced commercial discussions” over its waste-to-hydrogen DMG technology with Toyota Tsusho – a trading subsidiary of the Japanese conglomerate, Toyota Group
In a February operations update, Powerhouse said it was collaborating on detailed site operational requirements, delivery programmes and framework contracts for six client sites in the UK where it is anticipated that the DMG process will be used first. As part of this process, potential customers or partners are undertaking their own due diligence on the DMG process, potential operational savings and the speed with which plants can be delivered.
It is envisaged that the assembly of each DMG unit on site would involve the collaboration of an engineering, procurement and construction (EPC) specialist, and PowerHouse revealed it had been approached by “several blue-chip” EPC specialists who would like to work with PowerHouse across the globe.
The global reach of the potential EPC partners is important because PowerHouse is not just restricting its ambitions to the UK; it has also targeted the established Japanese hydrogen markets. Its development partner Waste2Tricity (W2T) is now in commercial negotiation with Toyota Tsusho Corporation, which PowerHouse believes could lead to Toyota Tsusho agreeing to be one of the companies introducing the DMG technology for hydrogen generation into Japan and other parts of Asia.
“Considerable progress has been made in terms of us maturing negotiations towards final contract stage and in dealing with the substantial increase in commercial leads,” said David Ryan, the chief executive officer of PowerHouse.
“Our core focus is on securing the first contract, and the significant strides we have made in recent months and weeks are a strong indicator of the solid progress being made towards building the first DMG plant”.
With shares trading around 0.5p as of 5 April 2019, Powerhouse has a market cap of £9.71mln.