PowerHouse Energy Group PLC (LON:PHE), in a statement ahead of today’s AGM, told investors that it is on track with the engineering design for its DMG technology, which can convert waste plastics and used tyres into energy.

“The generic Front End Engineering Design (FEED) Engineering is now complete, allowing initial safety design reviews and independent third party design reviews to be initiated on schedule,” the company said.

“The commercialisation phase is now well underway, further building on our existing strategic partner relationships, with encouraging discussions taking place with a number of potential commercial partners and end users, in the main arising from the waste management, transport and cement production sectors.”

READ: PowerHouse Energy raises capital to further its commercial activities

Looking to timings, it added: “While our intent was to have our first commercial facility operational by the end of 2018, lead time delays in material acquisition and operational financing have now made that unlikely.

“It is worth noting that while a portion of the funds raised over the past 18 months were used to progress the company’s test-engineering and operational efforts, the majority of funds were used to repay the Hillgrove Note - an absolute necessity for the company’s future - which created an impediment to the speed of our commercial engineering efforts.”

Powerhouse explained that it is now focussing on application and site-specific financing packages for market-led applications.

“The build and commissioning of the first DMG system will take, depending on specific customer requirements, in the order of 12 months to complete,” it said.

“Consequently, the board’s revised view is that, dependent upon acquiring finance for the facility in a timely manner, full commercial operation should commence in the latter half of 2019.”

“We are also actively pursuing a number of grant applications, which if successful, will result in additional funding during 2019.”