PowerHouse Energy signs first revenue contract
, the UK clean energy technology company, on Wednesday announced it signed its first revenue generating contract with Waste2Tricity.
PowerHouse is to provide planning and engineering design services that if successful, will lead to a build contract and license for use of its DMG® Technology at the Protos site.
PowerHouse’s proprietary process technology - DMG® - utilises waste plastic, end-of-life-tyres, and other waste streams to convert them into syngas from which products such as chemical precursors, hydrogen and electricity can be derived.
The company said that it anticipates that total revenue from the two stages of the contract will amount to approximately £400,000 to cover costs.
Shares in PowerHouse Energy were trading 11% higher at 0.555p following the announcement
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.”
He added “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 work will include specific feedstock analysis and testing including some third party services, site modelling and specific engineering related to the Protos site.
Heads of Terms were also agreed in relation to PowerHouse 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.
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.”
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