PowerHouse Energy Group plc (LON: PHE), the UK technology company pioneering hydrogen and clean energy production from waste plastic, is pleased to announce that it has signed a binding contract with its exclusive partner, Waste2Tricity Limited , for PHE to provide planning and engineering design services that will, subject to successful outcome, lead to a build contract and license for use of the DMG® Technology at the Protos site. The agreement defines the paid scope of works during two stages of planning and engineering. At signature, based on quotations from potential Contractors PHE provisionally anticipates that total revenue from the two stages of the contract will amount to approximately £400,000 to cover PHE and Contractors costs.
David Ryan, CEO of PowerHouse Energy, commented:
“This is the first revenue generating contract signed by PHE and follows the typical revenue regime we will be following for future developments, recognising that more substantial revenues will arise from IP, Design Rights, and licensing and operational engineering in due course. This agreement demonstrates that W2T expects that a special purpose vehicle formed by it intends to place a formal order for DMG® when the Pre-FEED and FEED work is complete. We thank W2T for their commitment and long standing support.”
The engineering design services to be provided by PHE for stage one includes specific feedstock analysis and testing including some third party services, site modelling and specific engineering related to the Protos site. This work will define the parameters for the second stage of the project, the Front End Engineering Design (FEED) contract which it is anticipated will be placed with an Engineering, Procurement & Construction (EPC) contractor, following an agreed review.
The agreement also incorporates Heads of Terms in relation to PHE acting as operational process engineering supplier for the DMG® Technology at the Protos site, encompassing design rights, build contracts and licensing proposition of its technology.
This contract comprises another step towards achieving Financial Close for the first commercial site utilising PHE’s DMG Technology.
John Hall, Chairman of Waste2Tricity (Protos) Limited commented:
“This agreement formalises our commitment to implement DMG® Technology on the Protos site. We are working closely in partnership with Peel Environmental, the overall Protos Energy Hub site owners, to finalise all the design parameters with PHE to take the development to the FEED stage and through to fabrication and construction as soon as practical.”
David Ryan, CEO of PowerHouse Energy, further commented:
“We have delivered this agreement in line with our expectations this quarter and we are thankful to our shareholders who have supported us over the years to develop this ground breaking technology to this point of commercialisation and revenues.