David Ryan, CEO of PowerHouse, commented: “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. The PowerHouse commercial and engineering teams and our project development partners W2T have dealt with the increase in such interest magnificently, screening opportunities, delivering proposals to potential customers and proactively following up as appropriate and, importantly, within budget. I am confident that we will sign heads of terms with at least one of these in the next quarter.
“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.”
PowerHouse Energy Group plc (LON: PHE), the UK technology company pioneering hydrogen and clean energy production from waste plastic and used tyres today updated stakeholders on recent progress.
The level of interest in the PowerHouse proprietary DMG® process from potential customers, development partners and engineering, procurement and construction (EPC) contractors has increased significantly in the last quarter. Most of the interest expressed has comprised specific enquiries that have been or are being taken through a screening process prior to formal proposals. As a consequence, we are progressing a number of potential deals in parallel, which we are confident will result in a final contract for the first commercial DMG®. We also have strong expressions of interest from over a dozen site owners who would like to establish DMG® units on their sites once our first unit is proven operationally.
We are currently collaborating on detailed site operational requirements, delivery programmes and framework contracts for 6 client sites in the UK where it is anticipated that the DMG® process will be utilised 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. When this process is complete, heads of terms would need to be agreed before signing a formal contract. We would anticipate reaching a head of terms with at least one customer in the next quarter. Signing of contracts would initiate revenue generation for PowerHouse.
Our planned delivery programme for the UK is that DMG® systems will be bought by partners and customers and located on host waste sites, with revenues for PowerHouse arising from sales and licences. We are in the process of progressing planning and permitting assessments on the potential clients’ sites under negotiation, in readiness for formal submission on initial contractual agreement.
It is anticipated that engineering and site assembly of each DMG® unit will involve an EPC partner. We have been approached by several blue-chip companies who would like to be considered to fulfil this role, each with worldwide delivery capability. To support this contractual engagement, PowerHouse has already put in place all the operational systems, procurement, contractual and licensing frameworks necessary to engage with such EPC partners.
In addition to the UK, we have targeted the established Japanese hydrogen markets. Our development partner Waste2Tricity (W2T) is now in commercial negotiation with Toyota Tsusho Corporation, which we believe could lead to Toyota Tsusho Corporation agreeing to be one of the companies introducing our DMG® technology for hydrogen generation into Japan and other parts of Asia.
