PowerHouse Energy – leader in energy recovery in waste raises £1m, shares fall 26%
PowerHouse Energy – leader in low-cost, high-efficiency, energy recovery processes in the waste management sector raises £1m fresh funds, shares fall 26%
This morning the waste plastic products to hydrogen technology business PowerHouse Energy Group (LON:PHE) has announced the Placing of 200m new shares at 0.5p each to raise £1m gross.
Broker Turner Pope Investments has Placed the shares with its clients and has taken 8m shares as its Broker Fee together with a three-year Warrant for 16m new shares.
The real history of PowerHouse started in 2015 when its Research and Development Unit was relocated from Australia to the UK, where it is operated today as the Demonstrator Unit.
This enabled the company to research the behaviour of various materials heated in the absence of oxygen as they turned from solid into a gas and led to its proprietary DMG® Technology that coverts waste plastics to hydrogen.
R&D is the foundation on which PowerHouse is built.
Combining its knowledge of thermal treatment with its engineering capability has enabled it to develop its own suite of technologies and have ability to implement them and bring them into use.
Focusing on waste materials that would otherwise just be thrown away or burnt, allows PowerHouse to contribute to the prevention of pollution and the reduction of climate change impacts.
The company has developed a process technology which can utilise waste plastic, end-of-life-tyres, and other waste streams to convert them efficiently and economically into syngas from which valuable products such as chemical precursors, hydrogen, electricity, heat and other industrial products may be derived.
Its process produces low levels of safe residues and requires a small operating footprint, making it suitable for deployment at enterprise and community level.
PowerHouse has recently entered into a framework services agreement with Petrofac Facilities Management, part of international energy services provider Petrofac (LON:PFC).
Under that agreement, Petrofac will provide engineering design and supply chain development services for PowerHouse’s project pipeline.
This will include providing services to the Protos waste plastic to hydrogen project in Cheshire.
CEO Keith Riley stated that:
"This placing comes at an exciting time for PHE, as the Company pursues its first commercial developments as a partner as opposed to a licensor.
The net funds will be applied to general working capital, including ongoing works to deliver our new Technology Centre in Wales".
Conclusion – early days
It is still very early days in the development of this group, which is becoming a leader in low-cost, high-efficiency, energy recovery processes in the waste management sector.
The group's shares fell over 26% on this morning’s funding news, to trade at around the 0.56p level, at which the group is capitalised at some £23m.