Powerhouse Energy Group PLC on Friday noted that one of its equipment suppliers, Mitchtell Dryers (Kingmoor) Ltd, has stopped trading.

Prior to the stoppage of trading, Michtell Dryers had been manufacturing the thermal combustion chamber for the feedstock testing unit at the firm’s Powerhouse Technology Centre, as well as being committed to sourcing the ancillary equipment and completing the installation.

As a result, Powerhouse said it is now working to source an alternative thermal combustion chamber and has spoken with a number of potential suppliers.

Powerhouse said it is currently unclear if the change of supplier will impact the schedule for installation and commissioning of the feedstock testing unit at the centre.

The company said its wholly-owned subsidiary, Engsolve Ltd, will now prepare the ancillary processes, safety systems, and civil works that must be completed for the feedstock testing unit to be installed.

Powerhouse has also lodged a claim for the first payment of £193,000 made to Michtell Dryers. It has also added a claim for liquidated damages and registered interest in the purchase of the already completed equipment.

‘This news is something we take in our stride, and we do not currently anticipate that it should delay the opening of the centre. [Powerhouse Energy] has yet to decide whether its best course of action is to take possession of the equipment in the [Michtell Dryers] facility or to go to another supplier afresh. Relative complexities of negotiations, costs and timings will be key factors,’ said Chair Tony Gardner-Hillman.

‘MDKL is not the only UK supplier able to provide the [thermal combustion chamber] and we have rekindled contacts with others we were speaking to prior to engaging with MDKL,’ he added.

Shares in Powerhouse Energy were down 1.7% at 0.47 pence on Friday afternoon in London.

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