Powerhouse Energy Group plc (AIM: PHE) the UK technology company commercialising hydrogen production from plastic, is pleased to announce its unaudited interim results for the six months ended 30 June 2022.
Highlights
Commercial Development
- Continued support of Peel NRE’s development of the proposed first commercial scale application of Powerhouse’s technology at the Protos Energy Park in Cheshire, UK. Peel NRE has shortlisted two potential contractors for the construction works and is currently seeking the necessary finance. Identifying potential contractors took significantly longer than expected due in part to the impact of the Covid pandemic. Further work is yet required to finalise the cost of construction, which is also being impacted by the high rates of inflation. A revised estimate of the construction programme and targeted time for commercial deployment will be made as soon as it can be established.
- Secured exclusivity and a supply chain with a Thermal Conversion Chamber manufacturer in the UK.
- Post period end signed a non-binding term sheet setting out the heads of terms for Powerhouse to take a 50% shareholding in the Peel NRE Ltd special purpose vehicle, Protos Plastics-to Hydrogen No 1 Ltd.
- Post period end agreed heads of terms (“HoTs”) with Hydrogen Utopia International Plc (AQSE: HUI) (“HUI”) for the proposed joint development of a site at Lanespark in Co. Tipperary in the Rep of Ireland.
- Post period end agreed HoTs with HUI for the proposed joint development of a site in Konin, within the Wielkopolska province of Poland.
Technology and Innovation
- Unveiled plans for a £1.3m investment to create a Global Technology & Innovation Centre by Q2 2023, to support the development of the technology coupled with serving as a sales development centre. Initial pre-payment of £193k made to the supplier for the design and supply of the test pyrolysis reactor.
- Evolution and adoption of a more flexible business model to provide a pipeline of opportunities to implement PHE’s DMG technology.
Financial Performance
- Revenues for the half year of £352k (H1 2021: £373k).
- Gross Profit for period increased to £79.9k (2021: £16.7k).
- £7.54m cash at bank at 30 June 2022.
Organisation and Growth
- Completion of a strategic review of the business with a clear path to commerciality and technical roadmap completed by our CEO and embraced by the Company.
- Post period end changes to the Board of Directors, including the resignation of Paul Drennan-Durose as CEO and of two Non-Executive Directors.
- Post period end appointment of Paul Emmitt to Chief Operating Officer.
Statement from Keith Riley, Interim non-executive Chairman and acting CEO of Powerhouse Energy Group Plc
“Progress has been made in the first half of 2022 as we developed our business model to be more flexible and retain more control over our proprietary technology. We continue with our plans to develop a global technology and innovation centre to develop our knowhow and breadth of application.
“With the refocusing of our strategy and additional flexibility of our business model implemented, we are encouraged to see increased levels of interest on an international level in the Powerhouse proposition. Post period end we have announced that we have signed two Heads of Terms with Hydrogen Utopia, for two projects outside of the UK; one in Ireland and the other in Poland. Both of these territories are key markets for Powerhouse as they give the company positioning within the EU from where further business expansion can be made.; Poland is a European leader in revitalising its economy towards net zero carbon emissions, while Ireland is in the process of establishing its hydrogen strategy with view to becoming a major player in the emerging hydrogen economy.
“There have been additional changes to the management team post period end, however at working level, the business continues to grow in strength and advance the commercial implementation of its technology. I would like to thank Paul Drennan-Durose, Gill Weeks, Myles Kitcher and James Greenstreet for their contribution to the business and wish them will in their future endeavors. Paul Emmitt has been appointed to Chief Operating Officer. He has been Chief Technical Officer since July 2021 and has over twenty years of engineering and operational management experience both in the UK and overseas in the oil, gas, energy-from-waste and chemical industries, he is well placed to progress the Company’s strategy. Chief Financial Officer, Chris Vanezis, is on paternity leave and Ben Brier is acting CFO during Chris’ absence,
“There is much work to be done in the development of our projects as we continue on our path to commercial implementation. The changes implemented in our commercial relationships made during the first half of this year will create the foundation for the growth of the Company in the years to come. We look forward to updating investors on our progress as we move through the financial year.”
For more information, contact:
Powerhouse Energy Group Plc
Paul Drennan-Durose and Keith Riley
