PowerHouse Energy Group Plc (LON:PHE) has told investors that its venture with Waste2Tricity Limited (W2T) has reached an agreement for the sale of power generated from the processing of waste plastics.
The W2T vehicle has signed a memorandum of understanding envisaging the sale of electricity generated at the Protos site, in Cheshire, into a private grid.
In a statement, PowerHouse described the new agreement as “a further step in the road” towards the financial close for the first commercial site to use its DMG technology.
“We are very pleased that our DMG Energy Recovery Technology will be a key part of the solution at Protos fostered by Peel Environmental with W2T and ASD, which envisages the regeneration of plastics in a circular economy approach to waste management,” said David Ryan, PowerHouse chief executive.
“This matches our vision for the application of the DMG® technology and we believe it heralds the finalisation of a number of further DMG®projects.”
It sees Advanced Sustainable Developments (ASD), described as an innovative recycler, work collaboratively with W2T. Electricity generated via DMG technology sold to ASD at a discount to market prices, in a deal that’s described as ‘commercially beneficial to all parties’.
ASD at the same time has agreed to supply W2T with a feedstock of plastics that it can’t otherwise recycle with its technology at the Protos site. The agreement is priced significantly below current landfill prices, Powerhouse noted.
Last month, PowerHouse signed its first revenue-generating contract with W2T. Under the agreement, the firm is to provide planning and engineering design services, that would lead to a build contract and license for use of its technology.
DMG converts waste plastic and tyres to hydrogen gas which can then be used to generate electric power or charge hydrogen fuel cells used in cars and other vehicles.