REG-Powerhouse Enrgy Grp: Completion of Peel Engineering Definition phase

Powerhouse EnergyAnnouncement

24/08/2020 07:05

Powerhouse Energy Group plc

("Powerhouse" or the "Company")

24(th) August 2020

Peel reports successful completion of Engineering Definition phase at Protos

Powerhouse Energy Group plc (AIM: PHE), the UK technology company pioneering
hydrogen production from waste plastic, is pleased to report that Peel L&P
(“Peel”) has now completed the Engineering Definition stage of the
contractors’ work for the DMG plant at Protos on schedule.

The engineering phase has been undertaken for the overall site and developed
for the DMG application to provide at detailed level the site definition
drawings and the procument packages for equipment and components from
suppliers. This will enable the delivery contractors to price their contracts
for constructing the plant and the associated on site buildings.

The engineering work has provided a further technical and commercial
validation of the DMG technology by international contractors. The completion
represents a significant step towards plant construction commencing as planned
in Q4 2020 and will facilitate Peel’s progressing to finalising the project
financing. In addition, the Company expects the payment of the one-off
£500,000 exclusivity fee from Peel L&P Environmental for the exclusive rights
to develop the DMG plants in the UK to be completed before the finalisation of
project financing.

The progress made towards commencement of plant construction of Protos, the
first of many UK DMG plants envisaged by Peel, augurs well for the Powerhouse
business. Each plant completed will not only generate further engineering
services work for Powerhouse at the front end and during construction, but
would also provide the Company with a substantial ongoing royalty income.

As set out in the Company’s announcement of its financial results published
on 30 June 2020, the Company is managing its working capital position and its
existing cash resources are now expected to be sufficient until into early
quarter four 2020. The Company is in discussions regarding raising further
finance and it is confident that these will be concluded shortly.

It is planned to hold the Company’s Annual General Meeting in September 2020
by video conference and notification and full details will be issued to
shareholders in due course.

Commenting, David Ryan, CEO of Powerhouse, said:

“I would like to congratulate Peel L&P Environmental on bringing the phase
for the DMG plant at Protos to a successful completion to their schedule
through the lockdown period – this was a significant achievement. The
involvement of experienced engineering contractors defining the application at
Protos has provided further commercial and technical validation of our DMG
technology.

“We are confident that the delivery of this first commercial plant can
provide a community based distributed source of hydrogen to further the
hydrogen economy in the UK and I welcome today's announcement that in addition
to the 11 agreed initial projects  Peel envisage the roll out of  many more
plastic-to-hydrogen facilities across the UK.”

Richard Barker, Director at Peel L&P Environmental, said:

“This FEED phase is an important step forward in delivering this innovative
technology at Protos. Working with Powerhouse we’re creating a blueprint for
this UK first plastic-to-hydrogen facility, with plans to roll out many  more
across the UK. With hydrogen increasingly being seen as an important part of
our journey to net zero the time is now.”

ENDS

For more information, contact:

 Powerhouse Energy Group plc                 Tel: +44 (0) 203 368 6399  
 David Ryan, Chief Executive Officer                                    
                                                                        
 WH Ireland Limited (Nominated Adviser)      Tel: +44 (0) 207 220 1666  
 James Joyce / Lydia Zychowska                                          
                                                                        
 Turner Pope Investments Ltd (Joint Broker)  Tel: +44 (0) 203 657 0050  
 Andrew Thacker / Zoe Alexander                                         
                                                                        
 Ikon Associates (Media enquiries)           Tel: +44 (0) 1483 271291   
 Adrian Shaw                                 Mob: +44 (0) 7979 900733   

Notes for editors:

About Powerhouse Energy Group plc

Powerhouse has developed a proprietary process technology - DMG® - which can
utilise waste plastic, end-of-life-tyres, and other waste streams to
efficiently and economically convert them into syngas from which valuable
products such as chemical precursors, hydrogen, electricity and other
industrial products may be derived. The Powerhouse technology is one of the
world's first proven, modular, hydrogen from waste (HfW) process.

The Powerhouse DMG® process can generate up to 2 tonnes of road-fuel quality
H2, and more than 58MWh of exportable electricity per day.

The Powerhouse process produces low levels of safe residues and requires a
small operating footprint, making it suitable for deployment at enterprise and
community level. As announced on 11th February 2020 under its Supplemental
Agreement with Peel Environmental, Powerhouse will receive an annual license
fee of £500,000 in respect of each project which is commissioned.

Powerhouse is quoted on the London Stock Exchange's AIM Market under the
ticker: PHE, and is incorporated in the United Kingdom.

For more information see www.powerhouseenergy.net



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