Source - LSE Regulatory
RNS Number : 0242P
Powerhouse Energy Group PLC
06 October 2023
 

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain

 

 

6 October 2023

Powerhouse Energy Group Plc

("Powerhouse Energy Group Plc", "PHE" or "the Company")

 

Powerhouse Technology Centre Project Update

 

Powerhouse Energy (AIM:PHE), a company pioneering integrated technology that converts non-recyclable waste into low carbon energy, provides the following update on its project for the development of its Technology Centre (the "Centre").

 

Summary

 

·    All General building work has now been completed

·    Both the PHE and Engsolve teams will be moving into the Centre this month

·    The Centre will now become the Company's business headquarters and Registered office

·   The Company has been made aware that Mitchell Dryers (Kingmoor) Limited, one of the Company's suppliers, has ceased trading

 

PHE advises that it is making excellent progress in the development of the Centre in Bridgend South, Wales. All general building work has now been completed and the teams will be moving into the centre this month. Powerhouse also announces that the Centre will become the Company's new registered headquarters. The Company's registered office will therefore be changing to Unit 3/3A, Garth Drive, Brackla Industrial Estate, Bridgend, CF31 2AQ.

 

The Company has also been made aware that its equipment supplier Mitchell Dryers (Kingmoor) Ltd ("MDKL") has ceased trading and on 6 October 2023 is commencing liquidation, which PHE understands is likely to progress as a creditors' voluntary winding up. MDKL had, prior to its cessation of trading, under contract with PHE, been manufacturing the Thermal Combustion Chamber ("TCC") for the Feedstock Testing Unit ("FTU") being built at the Powerhouse Technology Centre, as well as being committed to sourcing the ancillary equipment and completing the installation.

 

Whilst we are concerned for MDKL and its workforce, the Company has been working to source an alternative TCC. The Company has spoken with a number of potential suppliers, all of whom are capable of delivering a TCC to the Company's requirements, as are all of the ancillary equipment vendors. It is unclear if the change of supplier will have any impact on the schedule for installation and commissioning of the FTU at the Centre. PHE is in direct contact with MDKL's liquidator.

 

In parallel to PHE sourcing an alternative TCC, the preparation of the ancillary processes, safety systems, and civil works that must be completed for the FTU to be installed, will be undertaken by the Company's wholly owned subsidiary Engsolve Ltd and is expected to start immediately. This work will now precede installation of the TCC and this adjustment to the order of steps will help with supporting the schedule should an alternative TCC need to be sourced.

 

In the meantime, the Company has lodged a claim for the first payment of £193,000 which was made to MDKL. In addition, PHE has also added a claim for liquidated damages and registered interest in the purchase of the already completed equipment. The Company is in possession of the alloy that was bought by its wholly owned subsidiary Plastics to Hydrogen Number 1 Ltd, for the first commercial scale of the TCC. This had previously been stored at MDKL in Carlisle but was moved earlier this year.

 

Tony Gardner-Hillman, Non-Executive Chairman of PHE, commented:

"This news is something we take in our stride, and we do not currently anticipate that it should delay the opening of the Centre. PHE has yet to decide whether its best course of action is to take possession of the equipment in the MDKL facility or to go to another supplier afresh. Relative complexities of negotiations, costs and timings will be key factors. MDKL is not the only UK supplier able to provide the TCC and we have rekindled contacts with others we were speaking to prior to engaging with MDKL."

 

Paul Emmitt, acting CEO of Powerhouse Energy plc, said:

 

"We are making positive progress at the Centre and look forward to our teams moving in shortly.  Whilst frustrating, we do not believe that the TCC and FTU setback is a major concern to PHE and should not delay the scheduled opening of the Technology Centre. We have alternative plans in place which we are optimistic will result in a successful outcome."

 

END

 

For more information, contact:

 

Powerhouse Energy Group plc

Paul Emmitt, Acting CEO 

 

 

via Tavistock

WH Ireland Limited (Nominated Adviser)

James Joyce

James Bavister

 

+44 (0) 207 220 1666

Turner Pope Investments (TPI) Ltd (Joint Broker)

Andrew Thacker

James Pope

 

+44 (0) 203 657 0050

Tavistock (Financial PR)

Simon Hudson

Nick Elwes

Heather Armstrong

powerhouse@tavistock.co.uk

 

 

 

 

 

 

 

 

About Powerhouse Energy Group plc

Powerhouse Energy has developed a process technology which can utilise waste plastic, end-of-life-tyres, and other waste streams to convert them efficiently and economically into syngas from which valuable products such as chemical precursors, hydrogen, electricity, heat and other industrial products may be derived.

 

Powerhouse Energy's process produces low levels of safe residues and requires a small operating footprint, making it suitable for deployment at enterprise and community level.

 

Powerhouse Energy is quoted on the London Stock Exchange's AIM Market under the ticker: PHE and is incorporated in England and Wales.

 

For more information see www.powerhouseenergy.co.uk

 

 

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