Powerhouse Energy Group PLC (AIM:PHE) reported increased revenue and growing commercial momentum in its 2024 results, as it positions itself for a transformative year ahead driven by new contracts and interest in its proprietary waste-to-hydrogen technology.
The AIM-listed company, which specialises in converting unrecyclable waste into low-carbon energy, posted revenue of £499,000 for the year ended 31 December 2024 – nearly three times the prior year’s £181,000.
Operating losses widened to £4.71 million from £1.43 million, due in part to a £2.3 million goodwill impairment.
There was cash of £1.3 million in the bank at the end of December, down from £4.34 million a year earlier, although a £1.375 million fundraise completed post-year-end has since bolstered liquidity.
Chairman David Hitchcock described 2024 as a year of “consolidation and strategic focus,” with a key milestone being the completion of the company’s Feedstock Testing Unit (FTU) in Bridgend.
The 2.5 tonne-per-day kiln system is intended to validate feedstock and demonstrate the capabilities of Powerhouse’s technology platform to potential partners.
“The FTU enables us to show off why our technology is so innovative,” Hitchcock said. “The responses and feedback that we have already seen since March this year have been amazing.”
CEO Paul Emmitt added that the FTU has already triggered a wave of inbound commercial interest: “We are very confident that a number of these will transpire into tangible new business opportunities.”
The company’s engineering services subsidiary, Engsolve, also made notable progress, with revenues and inter-company work rising from £0.8 million to £1.38 million.
And in the first four months of the new financial year, Engsolve secured over £1 million in new and returning client contracts.
Two key commercial initiatives were highlighted: a framework agreement with National Hydrogen (NH2) in Australia - where front-end engineering design (FEED) is expected complete by the end of June 2025, and the Ballymena project in Northern Ireland, which progressed slowly last year, is now expected to return to schedule in the third quarter of this year.
Powerhouse’s strategy remains focused on securing licensing fees, royalties and engineering service revenues, while selectively engaging in project development.
Hitchcock and Emmitt said the priority in 2024 was validating opportunities with the highest potential return, seeing Powerhouse as having entered 2025 in a stronger position with a “very strong” pipeline of domestic and international projects and a “significant” increase in enquiries following the FTU’s commissioning.
The company’s medium-term goal is to deliver its first commercial project – a milestone that would signal the transition from technology showcase to revenue-generating deployments.
Shares in Powerhouse Energy were up 2% to 0.49p in early trading.