PowerHouse Energy nets first revenue generating contract

PowerHouse said that, subject to a successful outcome, the contract will lead to a build contract and license for use of its DMG Technology at Waste2Tricity's Protos site, a planned first industrial-scale facility capable of converting waste plastics into hydrogen which is on course to be constructed near Ellesmere Port in Cheshire.

Total revenue from the planning and engineering design stages of the contract will amount to approximately £0.4m to cover PHE and and its contractors' costs.

The AIM traded company's DMG technology can be used to convert waste plastic, end-of-life-tyres, and other waste into syngas, from which valuable products such as chemical precursors, hydrogen, electricity and other industrial products may be derived.

David Ryan, chief executive of PowerHouse, said: "This is the first revenue generating contract signed by PHE and follows the typical revenue regime we will be following for future developments, recognising that more substantial revenues will arise from IP, Design Rights, and licensing and operational engineering in due course."

PHE will provide site modelling and engineering services as part of the agreement, as well as defining the parameters of a front-end engineering design contract that would be placed with a third-party contractor, while the deal also relates to PHE acting as the supplier of DMG to the site, covering design rights, build contracts and licensing of the technology.

"We have delivered this agreement in line with our expectations this quarter and we are thankful to our shareholders who have supported us over the years to develop this ground breaking technology to this point of commercialisation and revenues," said Ryan.

PowerHouse Energy's shares were up 4.00% at 0.52p at 1221 BST.