PowerHouse Energy PLC (LON:PHE), a specialist in turning waste into synthesis gas, has told investors it accomplished a “tremendous amount” in the first half of the year.
The AIM-listed group shipped its demo G3-UHt unit – the system that transforms rubbish into electricity – over from Australia to a site in Chester back in March.
Within a matter of weeks, PowerHouse had completed the first phase of the re-commissioning of the system and had successfully produced the first gas from the unit.
READ: How the technology works
In late July, the green energy provider reported a successful test of its gasification reactor, representing phase 2.
The company said it recorded a maximum peak flow rate of over 50 cubic metres per hour of syngas, having successfully completed the rebuilding and enhancement of the company's G3-UHt gasification reactor.
Since the re-siting of the unit at Thornton in early May, the technical team has enhanced the gas systems, refurbished the feed and steam generation systems, and completely redesigned programmable safety and control systems designed in line with UK Health, Safety, & Environment legislation.
“The first half of the year has seen a tremendous amount accomplished by the Company and the recent placing, raising £1.6mln has provided the funding we require to begin revving our commercial engine,” said executive chairman Keith Allaun.
Financial restructuring
PowerHouse has been making strides financially as well. Earlier this year it raised £2.5mln and issued a further £1.4mln worth of shares to Hillgrove to negotiate the retirement of an “onerous” £3.4mln loan that was accruing interest at 15% per annum.
The company said the decision to free itself of that loan removed a “financial impediment to its growth and operation”.
At the end of August – after period end – PowerHouse raised a further £1.6mln through a share placing to fund further operational development.
Backing from partners
Back in January PHE received a £250,000 investment from Yady Worldwide which it then followed up with another £500,000 in February’s fundraise.
A “major UK partner” has also agreed to pump in up to £500,000 which will be used by PHE to cover the costs of various planning and environmental permits.
As part of that agreement, the company will have to supply five systems to locations of the backer’s choosing.
Experience added at boardroom level
There’s also been some movement in the boardroom, with the firm brining in several experienced personnel.
David Ryan joined as a non-exec in February and his since become the executive director of programme development, overseeing all technical operations.
Chris Vanezis was also brought on board as chief financial officer, while Dr Cameron Davies will take up his new role of non-executive chairman at the beginning of October.
An advisory panel, full of “experienced, knowledgeable and well-connected” people was also created.
Deal signed with Qatar for 2022 World Cup
Earlier this month PowerHouse revealed a deal with Qatar-based consulting firm, Energy & Environment Holding (EEH), which could ultimately lead to the group providing its technology for fuelling in time for the 2022 FIFA World Cup.
Through a memorandum of understanding, the companies will jointly investigate the potential of establishing a network of Powerhouse’s Distributed Modular Gasification (DMG) systems which convert waste to hydrogen.
Powerhouse explained that the objective of the project is to install a number of low-cost, low-carbon, hydrogen refuelling stations to support potential fleets of hydrogen powered buses, taxis, and other vehicles.
An early review of the project suggests it could comprise some 20 DMG systems in Doha and surrounding areas. It would provide sufficient hydrogen to supply several thousand cars and buses leading up to, and in support of, the 2022 FIFA World cup.
PHE is still in the pre-revenue stage and recorded a loss before tax of £696,800 (H1 2016: £881,000) in the six months ended June 30.