Powerhouse Energy has entered into a lease agreement for the building that will house its new technology centre.
The centre will be located at the Brackla Industrial Estate in Bridgend, Wales, and extends to 938 square metres, which will house the feedstock testing unit, offices and facilities for meetings and presentations.
The lease term is ten years with a break option at 5 years and rental of £46,000 per annum.
PHE added it will use existing cash resources to fit out the centre, which is anticipated to cost approximately £2mln, including the testing equipment.
Keith Riley, acting chief executive, added: "This is the exciting first step forward in establishing Powerhouse's new centre for technical development and R&D.
“A feedstock testing unit - much closer in design to the commercial thermal conversion chamber than the current demonstrator - is currently being manufactured and will be installed at Bridgend once the building has been made suitable for our use.
“The centre will serve as a main office for the company close to Engsolve Ltd, where most of our engineering work is carried out, consolidating the company's business."
Shares rose 2.5% to 1.03p.
-- adds share price movement--