REG - Powerhouse Energy Gp - Powerhouse Technology Centre Project Update

Powerhouse EnergyAnnouncement

06/10/2023 14:30

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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)            +44 (0) 207 220 1666

 James Joyce

 James Bavister

 Turner Pope Investments (TPI) Ltd (Joint Broker)  +44 (0) 203 657 0050

 Andrew Thacker

 James Pope

 Tavistock (Financial PR)                          powerhouse@tavistock.co.uk

 Simon Hudson

 Nick Elwes

 Heather Armstrong

 

 

 

 

 

 

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
(http://www.powerhouseenergy.co.uk/)

 

 

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