Shares in PowerHouse Energy Group PLC (LON:PHE) soared higher on Wednesday after the waste-to-energy specialist moved a step closer to commercialising its gasification technology.
The group has appointed Waste2tricity as a project development consultant, with the two working together to develop “multiple” waste-to-energy (WTE) plants in the UK.
Waste2tricity will be paid £20,000 a month in PHE shares for an initial contract period of two years, although 51% of these shares will be held back until a final decision on a commercial project is reached.
Once a project is successfully developed and each party has recovered its costs, any profits from the project will be split equally.
“With [Waste2tricity’s] involvement we now have ‘boots on the ground’ in the UK,” said PowerHouse executive chairman Keith Allaun.
“They are extremely well-connected, knowledgeable about the industry, and we’re…confident that together we will be able to deliver successful projects far more rapidly than working independently.”
PowerHouse’s G3-UHt system transforms rubbish into electricity with no toxic by-products and effectively zero greenhouse gases.
The two parties are looking to demonstrate the use of G3 in a commercial installation as well as explore the potential for the integration of AFC fuel cell technology, said PowerHouse.
Waste2tricity has previously initiated projects in both the UK and further afield in Thailand.
Shares were up by a third, or 0.2p, to 0.8p shortly after midday.