Powerhouse Energy Group PLC (AIM:PHE)'s chief executive Paul Emmitt earlier this week shared key updates on its ongoing projects and milestones.
The company announced that Engsolve has been awarded a paid Front-End Engineering Design (FEED) package by National Hydrogen.
Emmitt also discussed Powerhouse Energy’s achievement of a Japanese patent, a crucial milestone for global recognition and validation of its technology.
Additionally, updates on the Feedstock Testing Unit (FTU) were shared, with mechanical completion expected by year-end, enabling testing and validation in early 2025.
Proactive: The FEED (Front-End Engineering Design) that Engsolve has been awarded today—what does this all mean for Powerhouse, and how does it fit into your strategy?
Emmitt: This is a key next step in the strategy of royalties and licensing. Engsolve has been awarded a FEED by National Hydrogen, which is a front-end engineering design package. It’s the start of any major project and leads into the detailed design.But what this is, is a paid FEED.
Engsolve gets paid to undertake the FEED on behalf of National Hydrogen, which means revenue comes in through Engsolve. It also allows further interaction with both the Australian government and National Hydrogen throughout this phase.
FEED is needed to complete the planning and permitting process. We will spend December gathering the necessary data and then begin the FEED process in earnest in January.
Proactive: What happens next on this?
Paul Emmitt: We will gather data and start the FEED. The FEED allows us to generate the CapEx model, or the capital expenditure model, for National Hydrogen. They can then present this as a bankable project to larger funders.
The key purpose of the FEED is to collect enough data to enable planning and permitting to proceed. Nobody invests in a project until the planning and permitting is in place, but you need an engineered system for that to happen.
This step positions us to work with an EPC contractor and further advance the project with National Hydrogen.
Proactive: You also announced that you were recently awarded a Japanese patent. Why is this so important?
Emmitt: This is key. We’ve always had patents in GB and Europe, but for us to be taken seriously on a global stage, we needed something external to Europe. The Japanese patent is particularly significant because Japan conducts thorough research into applications.
Many competing technologies originated in Japan, so this validates us against that competition. It’s a big step forward, and we still have patents in progress for other jurisdictions, including the US, Canada, and Australia. This is a positive development for our global efforts.
Proactive: How is the FTU progressing? What’s happening at the technical centrer?
Emmitt: Good question. The technical centre remains on schedule. It will be mechanically complete by the end of the year, which means all the equipment will be in place, wired up, and tested cold.
By the new year, we will begin initial testing and validation. We hope to invite investors to visit the test centre once it’s officially opened.
Proactive: What should investors be looking out for in the next few months ?
Emmitt: Key milestones include the start of the FEED process, mechanical completion of the feedstock testing unit, and investor day invitations. These will help position 2025 as a promising year for Powerhouse Energy.
Once National Hydrogen gets planning and permitting completed, the project can progress with minimal risk to Powerhouse. Additionally, with the FTU operational, we anticipate significant interest from various stakeholders.
We’re finally making the progress we’ve aimed for over the past year, and things are looking very promising.