Powerhouse Energy (LSE:PHE) jumped 4pc to 0.5p on Wednesday after announcing the first revenue contract for its proprietary hydrogen-from-waste technology.
The business has signed a binding contract with Waste2Tricity, its exclusive partner, to provide planning and engineering design services at the pair’s recently-secured Protos site in Cheshire. Subject to a successful outcome, Powerhouse said this could lead to a build contract and licence for the use of its technology at the site.
Powerhouse’s technology converts waste products like plastic, tyres and other waste streams into syngas efficiently and economically. This is then used to create valuable products like chemical precursors, hydrogen, electricity. According to the business, its process can generate more than 1t of road-fuel quality hydrogen or more than 28MW/h of exportable power a day and can be used at both enterprise and community level.
Monday’s agreement defined the paid scope of works during two stages of planning and engineering, which the company expects to generate revenues of around £400,000.
The engineering services include specific feedstock analysis and testing, site modelling, and precise engineering related to the Protos site. This initial work will define the parameters for the second stage of the project and the front-end engineering design contract for placing with an EPC contractor.
Finally, the agreement also incorporates head of terms governing Powerhouse’s position as operation process engineering supplier for its technology at Protos. This encompasses design rights, build contracts, and the licencing proposition of its technology.
Powerhouse’s chief executive David Ryan said: ‘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.’
John Hall, chairman of Waste2Tricity, added: ‘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.’
Powerhouse revealed that Waste2Tricity had signed an agreement for Protos – a lease on a 54-acre energy hub –earlier this month. The firm said it believes this will be the first full-scale site for its technology and a critical step in its commercialisation strategy.
Protos is being developed by Peel Environmental, a subsidiary of leading British infrastructure, transport, and real estate organisation Peel Group. The £700m energy hub is designed to bring together complementary business in the environmental sector across the whole supply chain.