# PowerHouse Energy Group plc a pioneer in the nascent process of deriving hydrogen

- Link: https://www.directorstalkinterviews.com/powerhouse-energy-group-plc-a-pioneer-in-the-nascent-process-of-deriving-hydrogen/412759224
- Published: 2018-09-28T12:17:50+01:00
- Author: Charlotte Edwards

**PowerHouse Energy Group plc** (LON: PHE), the UK technology company pioneering
hydrogen production from waste plastic and used tyres, today announced its unaudited
interim results for the six months ended 30 June 2018.

**H1 2018 Highlights**

**Operational**

Completion of Front-end Engineering and Design Program (FEED) for DMG® System
 Initiation
of planning and permitting process for Ellesmere Port site Continued operation of
G3 Process Demonstration facility and additional data acquisition Augmenting of 
Commercial Operation/Business Development Team

**Financial**

Equity fundraisings totalling £2,088,434 which includes shares issued to settle 
the Hillgrove loan note and to consultants in lieu of services provided.
 Post-period
Highlights

Active engagement of Element Energy to assist with UK & EU Grant Funding Applications

Accelerated commercial activities by PHE and Waste2Tricity, Ltd for first DMG® facility
Engagement of third-party Engineering validation – process well underway and due
for completion in the coming weeks.

**Chairman’s Statement**

**Introduction**

PowerHouse has made progress in the first half of 2018 on a number of fronts, the
most significant of which is completion of the Front-end Engineering and Design (
FEED) process for its generic DMG® System. This milestone was accomplished through
the efforts of the design engineering team at EngSolve, the test engineering team
at PowerHouse, and the application of the empirical data that had been acquired 
from the on-going operation of the G3-UHt Process Demonstrator at the Thornton Science
Park.

Additionally, the Company was able to complete the retirement of the Hillgrove Convertible
Loan Note (the Note) through the issuance and placement of the shares outstanding
against the Note. This has allowed the Company to accelerate its technical and commercial
aims, and freed the Company from the substantial overhang of shares thereby represented.

The principal activity of the Company is to continue the exploitation of the newly
engineered and developed PHE Waste-to-Energy system, DMG®, and associated advances
in its intellectual property and know-how, in order to achieve successful commercial
roll-out of DMG®. The system’s thermal conversion process converts waste materials
such as non-recyclable plastic, biomass, and other waste streams into a high-quality,
clean, EcoSynthesis© gas composed primarily of hydrogen, methane, and carbon monoxide.
The previously developed and constructed PHE G3-UHt Process Demonstration system
continues to be operational at Thornton Science Park near Chester, UK.

We have created what we believe to be a distinct and sustainable business model 
with DMG® and the IP that underscores it: distributed waste elimination; distributed
electrical generation; distributed hydrogen production, and the extraction of chemical
precursors from heretofore wasted resources – quite literally, waste.

The Company continues to develop commercial interest in the DMG® System and is in
advanced negotiations with selected parties regarding the deployment of our initial
system and in ongoing discussions with a broader range of potential partners and
customers for utilising our technology. We are confident that the completion of 
our first commercial system will precipitate significant demand for the DMG® System
in multiple geographical regions.

PowerHouse no longer sees itself as simply a developer of Waste-to-Energy technology,
but also as a pioneer in the nascent process of deriving hydrogen, and other chemical
precursors, from waste. We are convinced that DMG® technologies will help fuel our
future, cleanly, efficiently and profitably.

**Our strategy**

The Company’s long-term strategy is to utilise its intellectual, engineering, and
operational know-how and to license its intellectual property, to assist in the 
building of sustainable and profitable waste eradication, energy recovery, and distributed
electrical and hydrogen production operations utilising the Company’s proprietary
thermal conversion platform technology (DMG®). This will be achieved by working 
in conjunction with a variety of third-party owner/operators, leading industry partners,
and others including waste management companies, material recovery facilities, landfill
operators, technology providers, and a suite of external project development partners.

Additionally, the Company will seek to exploit associated opportunities where the
Board believes it can add significant value and contribute towards the success of
the Company as a whole.

At present the Company’s principal assets are its G3-UHt process demonstrator, currently
located at the University of Chester Thornton Science Park, the test data derived,
and the Commercial Design materials developed during the on-going Engineering process.

As we enter the commercialisation phase for our proprietary DMG® technology platform,
our strategy is to target licensing revenues to move PowerHouse towards becoming
a profitable and sustainable business meeting the ever growing global demand for
efficient elimination of unrecyclable plastic waste and end of use tyres, the production
of clean energy, and the extraction of other useful resources from waste.

**Developing our business model**

The Company intends to further develop its DMG® process into a fully operational
commercial unit capable of processing a nominal 25 tonnes per day of waste and deriving
valuable resources such as EcoSynthesis Gas, hydrogen, distributed electricity, 
and other chemical precursors. It is expected that activities will commence in the
UK in the near-term in partnership with Waste2tricity Ltd, an experienced waste-
to-energy project development organisation.

The Company also continues the planning and permitting process related to the Peel
Environmental site near Ellesmere Port and, furthermore, is concurrently evaluating
a number of other potential sites for the roll-out and licensing of its initial 
DMG® technology.

Over the longer term the Company will look to exploit its proprietary know-how, 
technology developments, and other processes to develop economical, environmentally
sound, and efficient solutions to capture even more physical and chemical energy
from the growing waste-steam generated by our planet. Customers are being identified
not just in the UK, but across the EU, and in other selected geographic territories.

**Commercialisation**

The commercialisation phase is now well underway and we are making positive progress
by taking a customer-led approach, involving a combination of strategic alliances,
commercial partnering and working directly with potential customers/licensors of
our IP. Our flexible approach combined with the modular design of our DMG® System
allows us to tailor our technology to meet the most specific of partner and customer
requirements.

The generic Front End Engineering Design (FEED) Engineering is now complete, allowing
initial safety design reviews and independent third party design reviews which have
been initiated on schedule. Third party engineering verification is well underway
with results expected in the coming weeks.

We are now focussing on specific applications of the DMG® technology and are in 
active negotiation and discussions with a number of “early-adopter” commercial customers
for our IP. The fabrication, build, and commissioning of the first DMG® system is
expected to be completed, depending on specific customer requirements, and adequate
funding being in place, by the end of Q3 2019 with full commercial operation commencing
soon thereafter.

We are also actively pursuing a number of grant applications, which if successful,
will result in additional funding during 2019.

We note that the share price has fallen this year as we have been required to retire
the Note and to raise cash for Company operations. However, we believe this to be
a short-term situation for the Company and the Board is confident that third-party
technical validation, the appointment of a partner for the fabrication and construction
of the first DMG® facility, and, of course, the first contracted commercial order
utilising our proprietary DMG® technology, will drive what the Board believes to
be the considerable value inherent in PowerHouse.

**Outlook**

We believe we have the right strategy in place to deliver substantive growth over
the medium to longer-term and to deliver sustainable shareholder value as the commercialisation
strategy for our proprietary DMG® technology platform targets revenues to move PowerHouse
towards becoming a profitable business.

The Company is currently pre-revenue and is reliant on being able to raise further
funds to continue its development as outlined in the going concern note 1.2 of these
interim statements.

The Board appreciates the continued support of our shareholders and is making every
effort to repay your confidence in the Company and its future.

Share on: